Tata Communications Q4 Standalone Net Profit Surges More Than Fivefold

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Tata Communications Ltd., global provider of the new world of communications, reported more than fivefold increase in its standalone net profit for the fourth-quarter on Indian GAAP basis, mainly due to gain on sale of long-term investments.

Standalone Results

The Mumbai-based company's fourth-quarter standalone net profit surged more than fivefold to Rs.302.37 crore or Rs.10.61 per share from Rs.56.03 crore or Rs.1.97 per share in the fourth-quarter 2008.

The company said the results for the quarter included a one-time gain of Rs.346.65 crore on account of profit on sale of long-term investments. Excluding gain, the profit for the reported quarter totaled Rs.42.85 crore, compared with Rs.83.43 crore in the prior year quarter.

The company's quarterly total revenue rose 4% to Rs.886.93 crore from Rs.855.53 crore in the year-ago quarter, while other income amounted to Rs.39.66, up 15% from Rs.34.52 crore in the corresponding quarter last year.

Revenue for the quarter from Wholesale Voice segment plummeted 8% to Rs.408.71 crore from Rs.443.60 crore in 2008, while revenue from Enterprise and Carrier data rose 5% to Rs.329.80 crore from Rs.314.37 crore in the preceding year. Revenue for the quarter from Others totaled Rs.148.42 crore, compared with Rs.97.56 crore a year-ago.

For the fiscal year, the company's net profit grew 69% to Rs.515.95 crore from Rs.304.90 crore a year-ago.

The results for the fiscal year included a one-time charge of Rs.95.60 crore towards claim settlement and a gain of Rs.346.65 crore in the previous year on account of profit on sale of long-term investments. Excluding gain/charge, the profit for the year amounted to Rs.462.44 crore, compared with Rs.461.84 crore in the prior year quarter.

For the first twelve months, total revenue increased 13% to Rs.3,749.43 crore from Rs.3,312.39 crore in the previous year, while other income was Rs.172.85 crore, compared with Rs.165.63 crore last year.

Consolidated Results

Tata Communications posted fiscal year consolidated net profit of Rs.315.80 crore, compared with Rs.10.30 crores in 2008.

The current year results included a one-time gain of Rs.362.08 crore from the sale of shares in Tata Teleservices Ltd and a charge of Rs.95.60 towards claim settlement. Excluding gain/charge, the profit for the year amounted to Rs.156.28 crore, compared with Rs.160.12 crore last year.

For the full year, company's net revenue amounted to Rs.9,963.17 crore, up 20% from Rs.8,297.41 crore in the previous year, while other income declined 8% to Rs.210.28 crore from Rs.229.12 crore a year-ago.

The company said its board has recommended a dividend of 45% or Rs.4.50 per equity share of Rs.10 each for the fiscal year 2009.

The company said it recently completed the TGN Intra-Asia submarine cable system with a focus on emerging markets and forged strategic partnerships with key telecom players such as Etisalat for enterprise network services, including dedicated Ethernet services for customers seeking connectivity to and from the UAE.

The Managing Director and Chief Executive Officer, N. Srinath, said, "Our continued investments in infrastructure and services capabilities are highly relevant to our customers in the current environment. We will continue to pursue our vision of delivering a new world of communications to our customers, with a strong focus on service excellence. Towards this goal, we will continue to make prudent investments in expanding our network and services portfolio this year.

At the BSE, Tata Communications shares are currently trading at Rs.543.00, down by Rs.2.70 or 0.49% from the previous close. The stock hit an intraday high of Rs.570.00 and a low of Rs.537.90.

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