The results of 3G bidding has had a negative impact on all telecom stocks; consequently, Tata Communications stock has been also seeing choppiness over the past few weeks and its value has been fluctuating between Rs 240-250 over the past two weeks. The company recently declared its FY10 results and has reported consolidated net loss at Rs 598 crore as against profit of Rs 315 crore in FY09. The net sales increased to Rs 11,025 crore from Rs 9,963 crore and operating profit margin declined to 9.55 per cent from 19.21 per cent. The depreciation went up to Rs 1,510 crore from Rs 1,102 crore and interest cost jumped to Rs 521 crote versus Rs 301 crore. The company has also signed a five- year agreement with BT Group and has become BT’s primary supplier of international direct dial (IDD) and other voice termination services outside, The deal has enhanced its capabilities in the digital media and entertainment space.
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