Tata Communications reports Rs21 crore loss in June quarter
Revenue, however, rose 14% to Rs5,111.7 cr from Rs4,497.98 cr a year ago but fell 2.06% as compared with Rs5,219.31 cr in the March quarter
Mumbai: Tata Communications Ltd on Monday reported a net loss of ₹ 21.38 crore in the June quarter compared with a net profit of ₹ 94.52 crore a year earlier. The figure, however, was lower than the ₹ 123.19 crore net loss it posted in the March quarter.
Revenue for the quarter ended 30 June, however, rose 14% to ₹ 5,111.7 crore from ₹ 4,497.98 crore a year ago but fell 2.06% as compared with ₹ 5,219.31 crore in the March quarter.
A Bloomberg estimate of seven analysts had pegged the company’s net sales at ₹ 5,142.1 crore for the June quarter, while six analysts had forecast net profit at ₹ 22.4 crore.
Revenue from operations for the company’s core (submarine cables, networks and data centres) business improved 12% to ₹ 4,518.6 crore from ₹ 4,018.8 crore a year earlier.
The company said data services continue to be the primary growth driver because of an uptake in demand from global enterprise customers for network and data centre services.
The company’s start-up business, comprising primarily Neotel, posted a 24% increase in revenue at ₹ 593.1 crore from ₹ 479.1 crore in the March quarter.
In May, Tata Communications completed the sale of Neotel—the South African fixed-line phone operator in which it owned a 67% stake—to Vodacom SA, for $676 million.
Vinod Kumar, managing director and chief executive of Tata Communications, attributed the company’s performance to an “improvement in global demand, our comprehensive data services portfolio and an emphasis on operational excellence".
Sanjay Baweja, chief financial officer of Tata Communications, said the company is “confident that we will be able to sustain this trend in the coming quarters". He attributed the company’s performance to “improved asset utilisation, greater leverage on costs and uptrend in our newer services".
In July, the company said it would invest $200 million to double its data centre capacity in India from the current six data centres to 12, over a three-year period.
Shares of Tata Communications rose 1.19% to ₹ 378.40, while the benchmark Sensex gained 0.95% to 25,723.16 points. The earnings were declared after market hours.
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