Tata Communications Q3 profit down by 66% to Rs 58.8 crore
Tata Communications on Wednesday posted around 66 per cent dip in consolidated profit to Rs 58.85 crore in the third quarter ended December 31, 2019. The company had posted a net profit of Rs 173.82 crore in the same period a year ago. The total income of Tata Communications declined to Rs 4,242.69 crore during the reported quarter from Rs 4,288.65 crore in the year-ago period.
Revenue from voice solutions dropped by 14.2 per cent to Rs 808.88 crore from Rs 943.56 crore on year on year basis. The data and managed services business provided the company marginal support by registering a growth of around 3 per cent at Rs 3,299.08 crore in October-December 2019 period compared to Rs 3,203.34 crore.
“Our Data business continues to drive growth and profitability and we are witnessing strong growth in our Enterprise segment - both in India and internationally," Tata Communications MD and CEO A S Lakshminarayanan said in a statement.
The company said that it has received demand of Rs 6,633.43 crore from the Department of Telecom towards licence fee on its adjusted gross revenue for the financial year 2006-07 till 2017-18 but has not made any provision for the same as its has filed appeal related to the licences before Supreme Court and Madras High Court which are still pending.
Tata Communications said that the order of Supreme Court dated October 24, 2019 on AGR did not include appeal of the company. The company has also replied to the DoT demand cum show cause notice but has not received any reply from the department after the submission.
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