MTNL jumps after receiving IT refund

Mahanagar Telephone Nigam rose 6.73% to Rs 21.35 at 12:06 IST on BSE after the company said it received income tax refund worth Rs 129.82 crore for the assessment year 2006-2007.

The announcement was made during trading hours today, 10 April 2015.

Meanwhile, the BSE Sensex was down 40.03 points, or 0.14%, to 28,845.18.

On BSE, so far 7.58 lakh shares were traded in the counter, compared with an average volume of 6.90 lakh shares in the past one quarter.

The stock hit a high of Rs 22.65 and a low of Rs 19.80 so far during the day. The stock hit a 52-week high of Rs 39.10 on 25 June 2014. The stock hit a 52-week low of Rs 14.60 on 25 April 2014.

The stock had underperformed the market over the past one month till 9 April 2015, falling 21.22% compared with 0.14% rise in the Sensex. The scrip had also underperformed the market in past one quarter, falling 26.56% as against Sensex's 5.20% rise.

The small-cap company has an equity capital of Rs 630 crore. Face value per share is Rs 10.

Mahanagar Telephone Nigam (MTNL) said it has received income tax refund for the assessment year 2006-2007 amounting to Rs 129.82 crore, including Rs 21.18 crore towards interest on refund.

MTNL reported net loss of Rs 730.83 crore in Q3 December 2014 as against net profit of Rs 428.03 crore in Q3 December 2013. Net sales declined 3.93% to Rs 813.92 crore in Q3 December 2014 over Q3 December 2013.

MTNL provides basic phone, internet and cellular mobile telephony services in Delhi and Mumbai. The Government of India (GoI) holds 56.25% stake in MTNL (as per the shareholding pattern as on 31 December 2014).

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