Tata Communications’ consolidated net loss has widened to Rs 289.67 crore for the second quarter ended September 2012 against Rs 238.22 crore in the same period last year.
This was due to some regulatory changes that translated into an additional increase in licence fee from six per cent to seven per cent. This is expected to increase to eight per cent in 2013. There was an increase in the Wimax charges as well, the company said.
During the quarter, Tata Communications incurred a one-time actuarial loss on the Canada pension fund. Profitability was also hit by some unfavourable settlements in global voice services and spending on product creation, marketing and innovation.
Revenues were up by 26.6 per cent to Rs 4,271 crore for the September 2012 quarter (Rs 3,373 crore). Neotel, a company incorporated in South Africa, showed a strong performance in the quarter. Neotel’s EBIDTA turned positive in the second quarter of 2012.
Income from global voice operations increased to Rs 2,113.76 crore at the end of September 2012 from Rs 1,575.82 crore in the corresponding period last year.
S. Africa revenue up
Revenues from the South African operations were up 5 per cent to Rs 462.76 crore.
Global voice services carried a total of 15.3 billion voice minutes during the quarter as compared to13.1 billion minutes in the same quarter last year. However, Tata Communications said, “Net revenue per minute (NRPM) has declined sequentially, largely impacted by one-offs.” Global data services grew 25 per cent on a year-on-year basis.
Vinod Kumar, MD and Group CEO, Tata Communications, said, “We have sustained top-line momentum in an environment that has continued to be challenging, globally. The size and scale of our core business has been growing consistently, benefiting from a combination of our investments in global infrastructure and our innovative approach to clients’ needs across business lines and geographies.”
The stock closed at Rs 251.75, down 0.38 per cent on the BSE.
Keywords: Tata Communications Q2 results