On Wednesday, shares of Tata Communications Limited fell 8% to Rs 1,040 after the company reported its earnings for the December-ended quarter.
The company reported a five-fold jump in consolidated net profit at Rs 309.41 crore for October-December 2020 when compared to Rs 58.85 in the same period a year ago.
However, when compared to the September-ended quarter, the firm's consolidated net profit fell 19.6% from Rs 384.8 crore. Its revenue for the December quarter was down 4.1% at Rs 4,222.8 crore against Rs 4,401.1 crore in the previous quarter. Other income was Rs 8.2 crore versus Rs 76.1 crore.
Tata Communications said in a stock exchange filing on Tuesday that its income from operations was almost flat at Rs 4,222.83 crore during the December-ended quarter from Rs 4,228.27 crore in the year-ago period.
In a statement, the company said he consolidated PAT (profit after tax) had grown 428% year-on-year to Rs 309 crore ($42 million).
Growth in data business income compensated for the decrease in the voice business, it added.
The company said it had seen stable growth in data business despite it being a seasonally slow quarter with revenue growing 3.8% year-on-year on the back of robust performance in traditional services.
"We are witnessing strong demand from the OTT (Over the top) and Enterprise segment for our services...Growth services continue to scale and witness profitable growth," it added.
Voice solutions contributed Rs 674.26 crore to the income from operations, data and managed services Rs 3,449.19 crore, payment solutions Rs 59.14 crore and real estate Rs 44.19 crore during the December 2020 quarter.