Tata Communications has reported a 33.6 per cent decrease in its consolidated net loss at Rs 142.86 crore (Rs 215.45 crore) for the quarter ending June 2012. This is mainly attributed to benefits of the exchange rate, constant focus on cost management and performance improvement in Neotel, a company incorporated in South Africa. The telecom company received a refund of Rs 200 crore from TDSAT (DoT) which helped reduce net debt.
Revenues were up by 26 per cent to Rs 4,107.39 crore for the June 2012 quarter (Rs 3,257.06 crore). “There has been a steady improvement in Neotel over the last few quarters. Neotel improved its operating profitability with EBITDA margins of 13.5 per cent in the April- June quarter,” said Mr Sanjay Baweja, Chief Financial Officer, Tata Communications.
Revenues from South African operations were up 21.5 per cent to Rs 458.60 crore. There was a positive currency impact of about $13 million to the top line.
Global Voice Services (GVS) registered an increase in voice minutes to 15.8 billion voice minutes in the June 2012 quarter from 13.6 billion minutes last year. International voice traffic has been growing, the company said. Global Data Services (GDS) grew 26 per cent to Rs 1,598 crore in Q1-FY13 from Rs 1,264 crore in Q1-FY12.
Expansion
To spread its global footprint, the telecom company said that they would potentially look at expanding to South-East Asia, Vietnam and Philippines.
Recently, the government approved the demerger of surplus VSNL land into a separate company. “This approval will make it easier for us to raise non-debt funding,” said Mr Baweja.
The stock closed at Rs 255.25, down 1.18 per cent on the Bombay Stock Exchange.