Tata Comm’s net slips 64% at Rs 40 cr in Sept-qtr

09/11/2016 15:28

Leading telecom services provider Tata Communications Ltd has reported a drop of 64.4 per cent in its consolidated net profit after taxes (PAT) at Rs 39.96 crore in July-September quarter of 2016, on the back of impairment charges on its investment in Neotel.

“The consolidated net profit of the company stood at Rs 112.27 crore during the same period a year ago,” Tata Communications Ltd said in a filing to the Bombay Stock Exchange.

It’s consolidated total income too witnessed a marginally decline of 1.1 per cent at Rs 4,581.92 crore during September quarter of 2016, as compared to Rs 4,632.15 crore during the same period last year.

“Rs 125 crore was an impairment on investment in Neotel,” the company said in a statement.

Commenting on the performance, Tata Communications, CFO, Pratibha K Advani said, “With continued focus on driving operational efficiencies, we have generated healthy free cash flows of Rs 794 crore for core business in H1, recording a growth of 67 per cent over same period last year. We are focused on strengthening our balance sheet and setting the stage for healthier return ratios.”

“Tata Communications continues to contribute to the digital transformation journey of global businesses. The Q2 enterprise revenue has grown by over 24 per cent on a y-o-y basis and as we continue to increase the momentum of our data product portfolio, we are well positioned to grow and perform going forward,” Tata Communications, MD and CEO, Vinod Kumar said.

During the quarter under review, the data & managed services business of the company grew by 12 per cent to Rs 2,571.7 crore against Rs 2,293.33 crore. It’s payment solution business grew by 10 per cent to Rs 152.55 crore, during the period under review, as compared to Rs 138.59 crore in the same period a year ago.

Also, the company’s revenue of its voice business declined by 15 per cent at Rs 1,785.8 crore, from Rs 2,111.29 crore a year ago.

Meanwhile, shares of the company were trading at Rs 605 apiece, down 1.01 per cent, from previous close on BSE at 15:28 hours.

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