Tata Communications slides after Q4 net loss

Tata Communications fell 1.06% to Rs 552.90 at 10:49 IST on BSE after reporting consolidated net loss of Rs 198.82 crore in Q4 March 2019 compared with net loss of Rs 120.97 crore in Q4 March 2018.

The result was announced after market hours yesterday, 8 May 2019.

Meanwhile, the S&P BSE Sensex was down 43.09 points, or 0.11% to 37,746.04.

On the BSE, 32,000 shares were traded in the counter so far compared with average daily volumes of 15,000 shares in the past two weeks. The stock had hit a high of Rs 559.15 and a low of Rs 535 so far during the day. The stock hit a 52-week high of Rs 648.95 on 29 May 2018. The stock hit a 52-week low of Rs 435.95 on 26 October 2018.

Tata Communications' net sales rose 5.03% to Rs 4,243.51 crore in Q4 March 2019 over Q4 March 2018.

PAT loss for the quarter was due to equity loss pick up in STT, Singapore data centre business to the tune of Rs 173 crore.

In a regulatory filing, Tata Communications said it holds 26% stake in STT Tai Seng, which is accounted for as equity method investment. During the quarter and year ended 31 March 2019 the company absorbed loss of Rs 172.35 crore and Rs 164.16 crore which was primarily due to impairment of goodwill and intangibles recognised by STT Tai Seng, based on the audited financial statements dated 15 April 2019 of the investee as at and for the year ended December 31, 2018. The company's share of loss has been reported under share in profit/(loss) of associate.

Commenting on the results, Tata Communications, MD and CEO, Vinod Kumar said the strong growth in the company's data business helped it deliver consistent financial performance and create momentum for future growth.

Tata Communications is a leading provider of global digital infrastructure services.

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