Tulip Telecom Q3 net up 42% at Rs 82 cr

Enterprise communication services provider Tulip Telecom today reported an increase of 42% in its net profit at Rs 81.7 crore for the quarter ending December 31, 2010.

The company had posted a net profit of Rs 57.4 crore in the same quarter previous fiscal.

Total revenues for the reported quarter stood at Rs 602.2 crore as against Rs 500.9 crore in Q3 FY10, up 20.2%.

"In line with the vision of the company, there has been a strong shift towards the fibre and services business. Accordingly, there is a major focus on high volume sales in MPLS VPN, Internet wholesale business and International Long distance," Tulip Telecom Chairman and Managing Director H S Bedi said.

The company added new customers like Apeejay group, BHEL, Berger, 3i Infotech, Orissa Mining Corporation among others during the said quarter.

Tulip Telecom CEO Sanjay Jain expects to see contribution from its data centre business growing with the acquisition it announced earlier in the quarter.

"We have recently entered in an agreement with HGC. This business is shaping up and we expect to see contribution from this agreement in our business coming by end of fourth quarter of this financial year," Jain said.

During this quarter, the company acquired Data Center facility in Bangalore through its wholly-owned subsidiary for Rs 230 crore.

On the revival in fibre business, he said, "We have seen increase in input orders on fibres. The input orders on fibres were up by 40% in this quarter."

Shares of the company closed today at Rs 176.65 a piece, up 6.7% from its previous close on the Bombay Stock Exchange.