Tata Communications jumps after announcing Q1 results

Tata Communications rose 6.64% to Rs 462 at 13:28 IST on BSE after consolidated net profit fell 3.5% to Rs 41.78 crore on 2.9% decline in net sales to Rs 5031.69 crore in Q1 June 2016 over Q1 June 2015.

The result was announced after market hours yesterday, 1 August 2016.

Meanwhile, the S&P BSE Sensex was up 41.25 points, or 0.15%, to 28,044.37.

On BSE, so far 1.79 lakh shares were traded in the counter, compared with an average daily volume of 54,042 shares in the past one quarter. The stock hit a high of Rs 471.30 and a low of Rs 436 so far during the day. The stock hit a 52-week high of Rs 498 on 7 July 2016. The stock hit a 52-week low of Rs 325.70 on 29 February 2016. The stock had underperformed the market over the past one month till 1 August 2016, falling 9.51% compared with 3.16% rise in the Sensex. The scrip had, however, outperformed the market in past one quarter, rising 4.94% as against Sensex's 9.36% rise.

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

The bottom line was adversely impacted by an exceptional one-time write off of Rs 92 crore in Q1 June 2016 on account of impairment of goodwill in South African communications network operator Neotel. It may be recalled that Tata Communications had on 28 June 2016 announced selling its majority stake in Neotel to Liquid Telecom, a pan-African telecoms group, majority owned by Econet Wireless Global.

Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 18.3% to Rs 863 crore in Q1 June 2016 over Q1 June 2015 on the back of strong performance by data services and aided by voice solutions.

The company said in statement that in line with its strategy, revenue and EBITDA have shown a healthy trend over the last few quarters. The company is seeing a clear shift in its business mix with revenue from data services contributing 56% to gross revenue and 78% to EBITDA.

Tata Communications along with its subsidiaries provide managed solutions to multinational enterprises, services providers and Indian customers.

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