Tata Communications, which had closed on Friday at Rs.877.60, opened at Rs.921.45, hitting its 5% UC of the day. Its 52-week high is at Rs.937.

The company posted a jaw dropping 7-times jump in consolidated net profit at Rs.385 crore. Revenue from operations rose 3% to Rs.4401 crore. The company had a huge other income at Rs.76 crore which helped – Rs.67 crore of this was on account of sale of its land parcel along with a building.

An over 4.5% drop in total expenses along with the increase in topline led to a 39% surge in EBITDA at Rs.1157 crore. Margins showed a smart jump up from 19.5% to 26.3%.

During the quarter, the company has received demand note from the DoT to pay Rs.6633 crore towards licence fees on its adjusted gross revenue (AGR) for the financial years 2006-07 till 2017-18. This included Rs 5434 crore, which were disallowed by the DoT towards the cost adjusted to gross revenue by the company that were claimed on 'accrual basis' instead of payments basis, for which revised statements on the basis of actual payment has been submitted to the DoT. The company made a provision of Rs 337.17 crore during the January-March quarter and for the balance Rs.5096 crore, it believes that the likelihood of the same materialising is remote since the deduction on payment basis has not been considered by the DoT.