Growth, margin pressures for Tata Communications

Will take a few quarters to recoup revenue loss from customer churn, loss of business from Tata Teleservices

The Tata Communications stock shed nearly five per cent after it suffered a loss due to one-offs as well as a weak operating performance.

The company has reported a net loss of Rs 250 crore, largely due to a Rs 185-crore additional provision it made as part of a contractual obligation to Tata Sons. This is its remaining share (a total of Rs 1,058 crore) of the NTT DoCoMo arbitration award for which it had made a provision of Rs 872 crore in FY17. This, coupled with additional provisions for contingencies related to legal matters of Rs 15.4 crore, added