New Delhi, Jun 13 (PTI) Tata Communications on Saturday reported widening of consolidated losses at about Rs 275 crore for the fourth quarter ended March 31, mainly due to provisioning for statutory dues.
It had registered net loss of Rs 199 crore in the year-ago period
The quarter’s loss was due to a provision of Rs 342 crore towards additional license fees liability, the company said.
The income from operations for the just ended quarter came in at nearly Rs 4,398 crore, up 3.6 per cent year-on-year helped by strong performance in the data business.
For the full year ended March 2020, the losses were at Rs 84.83 crore compared to Rs 80.43 crore in FY19.
The income for operations for FY20 was at Rs 17,068 crore, up 3.2 per cent over the previous fiscal.
“We are living in extraordinary times with the COVID-19 pandemic continuing to disrupt businesses at large.
“At Tata Communications, we are enabling smooth and continued operations of services for our customers, delivering service upgrades and changes in record speed, as they implement work from home measures and shift workloads seamlessly across borders as part of their business continuity plans,” A S Lakshminarayanan, CEO of Tata Communications, said in a statement.
On the COVID-19 business response, the company noted that there was 30 per cent growth in internet traffic on its network in March compared to January 2020.
“Capacity expansion in a short span of time has been possible due to extensive upgrade and modernisation of our network done in the last three years…. Recorded 1 billion minutes of enterprise voice traffic in March alone,” the statement said.
The Board has recommended a final dividend of 40 per cent (Rs 4.00 per share of the face value of Rs 10 each) for the financial year ended March 31, 2020.
During the quarter ended September 2019, the company received demand from the Department of Telecom (DoT) aggregating about Rs 6,633 crore towards licence fee on its Adjusted Gross Revenue (AGR) for the financial years 2006-07 till 2017-18.
The demands received by the company included an amount of about Rs 5,434 crore, which were disallowed by the telecom department towards the cost adjusted to gross revenue by the company that were claimed on “accrual basis’ instead of payment basis, for which revised statements on the basis of actual payment has been submitted to the DoT.
The company said that though it believes that it has a case to defend, it has made a provision of Rs 337 crore during March quarter and for the balance amount of Rs 5,096 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”.
With regard to balance amount of Rs 1,199.7 crore, the company has existing appeals relating to its international and national long distance licences, which it said were filed in the past, are pending in courts, and the company’s appeals are not included in the Supreme Court ruling of October 2019 on AGR.
“…the company has responded to DoT denying and disputing the amounts claimed by the DoT in the above mentioned demands. The company has not received any response from the DoT after the submission. The company believes that it will be able to defend its position and also has obtained a legal opinion in this regard,” the company in its results filing to BSE.