Tata Communications sheds 10% as Q3 net drops 80%

NEW DELHI: Shares of Tata Communications plummeted over 10 per cent in Wednesday's trade after the company said its consolidated net profit dropped 79.80 per cent to Rs 21.89 crore in the December quarter. The company had reported a net profit of Rs 108.53 crore for the same period a year ago.

Consolidated total income of the company inched up 3.7 per cent to Rs 5,099.5 crore during the quarter under review from Rs 4,914.51 crore in the corresponding period of 2014-15.

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The stock fell 10.19 per cent to hit a low of Rs 363.3 on BSE. By 10.30 am, a total of 94,000 Tata Communications shares got traded compared with a two-week average of 41,000 shares. Deliverable volumes as a percentage of traded quantity stood at 16.09 per cent, suggesting buildup of speculative positions on the counter.

Tata Communications reported decline in its voice service business, but data services business witnessed growth during the quarter.

Global voice segment continues to be impacted adversely by structural industry-level headwinds, namely growing acceptance of Voice over Internet Protocol ( VoIP) delivered by over the top carriers (OTTs) coupled with a steep decline in tariffs, the company said.