Tata Communications gains after sale of land parcel in Chennai

Tata Communications rose 1.9% to Rs 233.70 at 12:25 IST on BSE after the company said it has completed a sale transaction of the land parcel and building in Chennai, for a transaction value of Rs 192.30 crore.

The company made the announcement during trading hours today, 4 April 2013.

Meanwhile, the S&P BSE Sensex was down 108.50 points or 0.58% at 18,693.14.

On BSE, 46,000 shares were traded in the counter as against average daily volume of 20,160 shares in the past one quarter.

The stock hit a high of Rs 236.25 and a low of Rs 224.70 so far during the day. The stock had hit a 52-week high of Rs 266.35 on 26 July 2012. The stock had hit a 52-week low of Rs 190.65 on 22 May 2012.

The stock had outperformed the market over the past one month till 3 April 2013, rising 3.29% compared with the Sensex's 0.62% fall. The scrip had, however, underperformed the market in past one quarter, sliding 8.79% as against Sensex's 4.87% fall.

The mid-cap company has equity capital of Rs 285 crore. Face value per share is Rs 10.

Tata Communications said that the land parcel and building in Chennai was earlier being used as a staff housing colony. The company has received the payment of entire amount of Rs 192.30 crore, Tata Communications said. This transaction is in line with the company's objective of monetizing its non-core assets, Tata Communications added.

On consolidated basis, Tata Communications reported net loss of Rs 201.01 crore in Q3 December 2012, higher than net loss of Rs 153.06 crore in Q3 December 2011. Net sales rose 23% to Rs 4434.11 crore in Q3 December 2012 over Q3 December 2011.

Tata Communications is a leading global provider of a new world of communications. The Tata Global Network includes one of the most advanced and largest submarine cable networks, a Tier-1 IP network, with connectivity to more than 200 countries across 400 PoPs, and nearly 1 million square feet of data center and collocation space worldwide. The company has strategic investments in South Africa (Neotel), Sri Lanka (Tata Communications Lanka) and Nepal (United Telecom).

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