It has also made a payment of Rs 379.5 crore to the DoT under protest during the quarter ended March 31, 2021, the company said in its financial results statement released Wednesday.
Following the Supreme Court’s ruling on AGR dues of telecom companies, the DoT had demanded Rs 6633.4 crore from Tata Communications in September 2019.
“The demands received by the Company included an amount of Rs 543370 lakhs which were disallowed by the DoT towards the cost adjusted to Gross Revenues 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,” it said.
“Though, the Company believes that it has a case to defend, it has made a provision of Rs 33717 lakhs during the quarter ended March 31, 2020 and for the balance amount of Rs 509653 lakhs, the Company believes that the likelihood of the same materializing is remote since the deduction on payment basis has not been considered by the DoT.”
In the just ended quarter, Tata Communications has made a payment of Rs 379.5 crore under protest to DoT.
The company has also recorded a gain of Rs 67.38 crore by selling a land parcel along with building and recognised an expense of Rs Rs 5.92 crore relating to demerger of surplus land.
As on March-21, the company’s subsidiary Tata Communications Payment Solution Ltd (TCPSL) has accumulated losses of Rs Rs 1476.9 crore
“The future profitability of TCPSL is dependent upon revised business model and increase in the Inter Bank Rate (IBR) which is subject to regulatory clearance,” it said.
According to the financial statement, Tata Communications has clocked in a profit of Rs 299 crore in January-March period, a marginal dip of 3.2% from preceding quarter’s profit of Rs 309 crore. It had made a loss of Rs 275 crore in the corresponding period last year.
Consolidated revenue was at Rs 4,073 crore, decrease of 7.4% on-year. This has been largely due to degrowth in voice business and data business.
Data revenue was at Rs 3,515 crore, down by 2.2% on-year. This reduction is primarily due to longer deal conversion and execution cycle due to COVID-19 and moderation of UCC (unsolicited commercial communication) traffic.