TATA COMMUNICATIONS

Tata Communications is ringing loud and clear today. The stock hit a new 52-week high at Rs.258 and there has been an almost 8 times spurt in volumes. The stock remains in the green, up over 8%.

The stock is up on the back of its very good performance for Q2FY14. YoY, the company has turned around with a consolidated net profit at Rs.80 crore v/s a net loss of Rs.274 crore in Q2Fy13. Its net sales rose 16% at Rs.4952 crore. The company has attributed this turn around to global increase in demand across all segments.

Q2FY14 EBITDA was up 90% (YoY) and up 28% (QoQ). The global voice revenue rose 30% (YoY) and global data gross revenue rose 19%. Its wholesale voice business remained the bread winner with revenue from this growing 29%. Gross revenues for the Core Business improved by 17% at Rs. 4419 crore v/s Rs.3784 crore (YoY). Its Global Voice Services (GVS) clocked a total of 15.4 bn minutes carried on the network in Q2 FY14 - up from 15.2 bn minutes in Q2 FY13. GVS net revenues showed a 30% YoY. The current fiscal looks good, with the company for H1FY14 posting a net profit at Rs.175 crore compared to the net loss of Rs.417 in H1FY13.