MTNL jumps on IT refund

MTNL informed the BSE on Friday that it has received Income Tax refund for the Assessment Year 2000-01 amounting to Rs. 112.95 Crores which includes Rs. 52.35 Crores towards interest on Refund. This means we will see a major jump in its bottomline in current Q1, if this refund is added in during the first quarter.

The company had posted its first turnaround, without an IT refund rescue, in Q4FY16 at Rs.175 crore and this was thanks to the Rs.429 crore it earned by surrendering its 800 Mhz of CDMA spectrum. However, total operational revenue for MTNL decreased 4% to Rs 836 crore for the quarter.

Nevertheless, the stock price is up in the green today, hitting an intra day high at Rs.23.55, just a Re.1 lower than its 52-week high of Rs.24.50.