Tata Communications rallies 13%, hits 52-week high post Q2 results

NEW DELHI: Tata Communications Ltd rallied as much as 12.9 per cent in morning trade on Wednesday to hit its 52-week high of Rs 258, a day after the company reported a net profit of Rs 80.36 crore for the quarter ended September 30, 2013, on the back of growth in managed services and voice offerings.

The company had reported a net loss of Rs. 274.24 crore in the corresponding period last fiscal year, it said in a statement.

At 10:30 a.m.; Tata Communications Ltd pares some of the morning gains and was trading 8.8 per cent higher at Rs 248.80. It has hit a low of Rs 236 and a 52-week high of Rs 258 in trade today.

Total income of the company rose 15.95 per cent to Rs. 4,952.61 crore for the reported period as compared to Rs. 4,270.99 crore last year.

Gross revenues for Tata Communications' core business rose by 17 per cent to Rs. 4,418.7 crore against Rs. 3,784 crore during the corresponding quarter of the previous fiscal year (FY13).

During the quarter, the employee costs decreased to Rs. 586.30 crore compared to Rs. 637.98 crore in the same quarter last year, PTI reported. However, total expenditure of the company increased to Rs. 4,659.34 crore during the reported period compared to Rs. 4,362.36 crore last time.

During the quarter, Tata Communications wholly-owned subsidiary VSNL SNOSPV has entered into exclusive discussions with Vodacom Group to sell all of the issued share capital of Neotel, held directly or indirectly by SNOSPV.

Tata Communications, at present, owns 68.5 per cent of Neotel, South Africa's second-biggest fixed-line phone operator.