The Hindu Business Line : Tata Comm net zooms 203%

Mumbai, Jan. 28 Tata Communications has reported a 203 per cent rise in net profit for the quarter ended December 31, 2008 to Rs 81 crore from Rs 26.7 crore reported in the same quarter a year ago.

Revenues for the period went up by 17 per cent to Rs 990 crore (Rs 846.7 crore).

On August 27, 2008, the arbitration tribunal of the International Chamber of Commerce, Hague handed down a final award in the arbitration proceedings brought by Reliance Globalcom Ltd, formerly known as ‘FLAG Telecom’, against Tata Communications relating to the Flag Europe Asia Cable System.

The arbitration proceedings have been ongoing since 2004. The Tribunal has directed the Tata Company to pay $21.45 million as final settlement against the claim amount of $385 million which was reflected as contingent liability. The payment has been accounted in the September quarter numbers, the company said. “The company’s performance has continued to improve despite a challenging business environment. We are confident that our global communications infrastructure and services capabilities would play a major role in helping customers manage the uncertain economic situation,” said Mr N Srinath, MD & CEO, Tata Communications.

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