Tata Communication, for Q2FY21, on a 4% (QoQ) drop in consolidated net revenue at Rs.4223 crore, posted a 20% drop in net profit at Rs.310 crore. A deferred tax write back of Rs.28 crore helped shore up the fall.
YoY, the numbers were flat with revenues from voice solutions coming in lower while showing growth in data and manages services. Its operating profits jumped up 144% on the back of a sharp fall in network and transmission expenses plus fall in other expenses.
The company also announced that the Govt, through the Department of Investment and Public Asset Management, stating that it will be selling its entire 26.12% stake in the company through offer for sale and strategic sale route in the current fiscal. The balance, including any leftover portion in the OFS, will be offered to strategic partner Panatone Finvest Ltd, which currently holds 34.80% stake. Tata Sons hold 14.07% and 25.01% is with the public.
The stock is today among the top five losers of the day, going down 8% to hit an intraday low at Rs.1040. Its 10% LC for the day is at Rs.1017.