Tata Communications net dips 24 pc | business | Hindustan Times
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Tata Communications net dips 24 pc

business Updated: Jul 30, 2008 15:59 IST

PTI
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Tata Communications on Wednesday reported the first quarter net profit at Rs 98.34 crore, a 24.14 per cent decline over the corresponding period last year.

"The company, formerly VSNL, had a net profit of Rs 129.65 crore in Q1 of FY'08", Tata Communications said in a filing to the Bombay Stock Exchange.

The total income rose 3.78 per cent to Rs 921.29 crore in the June quarter, from Rs 887.72 crore in the same period previous fiscal.

During the quarter, the company had entered into an agreement with South African state-owned enterprises, Eskom and Transnet, to acquire their 30 per cent stake in Neotel. However, the company did not disclose the financial details of the transaction.

After the closure of this transaction, the company along with Tata Africa Holdings would hold 56 per cent stake in Neotel, the filing added.

Further, during the quarter the telecom solutions provider had entered into an equity joint venture agreement to acquire 50 per cent stake in China Enterprise Communications (CEC) subject to Chinese government and regulatory approvals.

In June,Tata Communications International Pte, a wholly-owned subsidiary of Tata Communications, had signed the equity joint venture agreement with the shareholders of CEC for acquiring the stake in the company.

Shares of Tata Communications touched an intra-day high of Rs 461.85 and were later trading at Rs 453, up 11.88 per cent in the afternoon trade on the BSE.