MTNL zooms up on tax refund

MTNL is a big gainer on the bourses today, up 8% at Rs.21.65 with an intra day high at Rs.22.65. Volumes are up over two times.

The company informed the exchanges today that it has received Income Tax Refund for the Assessment Year 2006-07 amounting to Rs.129.82 crore. including Rs.21.18 crore, towards interest on refund. Naturally, this will go on to boost the bottomline in current Q1.

We had seen the same thing happen in Q2FY14 too when the company had received a refund from IT department to the tune of Rs.623 crore; that plus the refund from spectrum return,  helped boost its performance, actually show a turnaround when operationally it continues to remain in the doldrums.