Tata Communications' network down after poor Q4 result

Tata Communications lost 7.9% to Rs 649 at 14:21 IST on BSE after the company reported consolidated net loss of Rs 260.81 crore in Q4 March 2017, higher than net loss of Rs 256.95 crore in Q4 March 2016.

The result was announced after market hours yesterday, 4 May 2017.

Meanwhile, the BSE Sensex was down 246.27 points, or 0.82%, to 29,879.94

On the BSE, so far 5.48 lakh shares were traded in the counter, compared with average daily volumes of 61,971 shares in the past one quarter. The stock had hit a high of Rs 698 and a low of Rs 626 so far during the day. The stock hit a 52-week high of Rs 784 on 17 March 2017. The stock hit a 52-week low of Rs 417.60 on 5 May 2016.

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

Tata Communications' consolidated total income rose 7.64% to Rs 5116.48 crore in Q4 March 2017 over Q4 March 2016.

During Q4 March 2017, based on the High Court order dated 28 April 2017, the company has made a provision of Rs 872 crore towards the contractual obligation under the inter se agreement as the difference between the fair market value of the shares to be acquired and the advance paid to Tata Sons for shares of Tata Teleservices.

Tata Communications said that revenue and earnings before interest, taxation, depreciation and amortization (EBITDA) growth were impacted by the exclusion of the India and Singapore data centre revenue, demonetisation impact and one-off expenses due to cable repair, employee related expenses and legal and professional fees.

Commenting on the results, Vinod Kumar, MD and CEO, Tata Communications, said, that market demand for the company's services remain strong and it continues to increase wallet share with large global enterprises.

Tata Communications along with its subsidiaries is a leading global provider of A New World of Communications. With a leadership position in emerging markets, Tata Communications leverages its advanced solutions capabilities and domain expertise across its global and pan-India network to deliver managed solutions to multinational enterprises, service providers and Indian consumers.

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