Tata Comm posts Rs 80.36 cr net profit in September quarter

Tata Communications today reported a net profit of Rs 80.36 crore for the quarter ended September 30, 2013, on the back of growth in managed services and voice offerings.

The company had reported a net loss of Rs 274.24 crore in the corresponding period last fiscal, Tata Communications said in a statement.

"We have recorded solid growth across both our managed services and voice offerings and newer services...This coupled with local market offerings such as our aggressive ATM roll out across India have all contributed to a strong quarter and H1,"

Tata Communications MD and CEO Vinod Kumar said.

Total income of the company rose 15.95 % to Rs 4,952.61 crore for the reported period as compared to Rs 4,270.99 crore last financial year.

     
Gross revenues for the core business improved by 17 % at Rs 4,418.7 crore against Rs 3,784 crore during Q2 FY 2013.

"Global voice services continued on its growth path with a total of 15.4 billion minutes carried on the network on Q2 FY 14- up from 15.2 billion minutes in Q2 FY 13," it said.

During the quarter, the employee costs decreased to Rs 586.30 crore compared to Rs 637.98 crore in the same quarter last year.

However, total expenditure of the company increased to Rs 4,659.34 crore during the reported period compared to Rs 4,362.36 crore last time.

The company said during the quarter, VSNL SNOSPV, its wholly owned subsidiary, has entered into exclusive discussions with Vodacom Group to sell all of the issued share capital of Neotel, held directly or indirectly by SNOSPV."Discussions are in progress," it added.

Neotel, South Africa's second-biggest fixed-line phone operator, is 68.5 % owned by Tata Communications. PTI