InvestorQ : Why has Tata Communications reported a big loss? Are there any things to worry about?
Maniish Lofar made post

Why has Tata Communications reported a big loss? Are there any things to worry about?

Answer
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Nisha Chandani answered.
1 year ago


You are right that Tata Communications did report a loss of Rs.199 crore in the March quarter. However, this loss is due to an exceptional item in its income statement. This quarter, the company took a write down of Rs.173 crore on the equity of its STT Singapore Data business. Total income is up for the quarter by 5% at Rs.4243 crore. Actually, for the full year, the losses of the company narrowed to Rs.82 crore from Rs.328 crore last year. This is despite taking a total hit of Rs.340 crore on the STT Singapore goodwill impairment.

Tata communications has built a solid franchise in the enterprise data and enterprise digital business. It also has the hidden value in its VSNL land holdings. At the current price of the stock, it is worth holding on to.


user profile image
Nisha Chandani answered.
1 year ago


You are right that Tata Communications did report a loss of Rs.199 crore in the March quarter. However, this loss is due to an exceptional item in its income statement. This quarter, the company took a write down of Rs.173 crore on the equity of its STT Singapore Data business. Total income is up for the quarter by 5% at Rs.4243 crore. Actually, for the full year, the losses of the company narrowed to Rs.82 crore from Rs.328 crore last year. This is despite taking a total hit of Rs.340 crore on the STT Singapore goodwill impairment.

Tata communications has built a solid franchise in the enterprise data and enterprise digital business. It also has the hidden value in its VSNL land holdings. At the current price of the stock, it is worth holding on to.