TDSAT orders Centre not to take coercive steps against Tata Communications over Rs 991.5-crore license fee demand

The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) on Monday ordered the central government not to take coercive steps against private sector telecommunications company Tata Communications in relation to a license fee demand of Rs 991.5 crore.

Last week, the tribunal had directed the Department of Telecommunications (DoT) not to take any coercive action against Tata Communications, a Tata group company, which had challenged the licence fee demand.

The telecom department's demand, according to a letter dated August 8, pertains to the financial years 2006-07 and 2007-08. The demand is in relation to international long distance (ILD), internet service provider (ISP) and national long distance (NLD) services. 

Tata Communications (TATACOMM) shares ended with a gain of Rs 11.7 — or 0.7 per cent — at Rs 1,704.2 apiece on BSE earlier in the day.

The next hearing on the matter will be on September 13.

Tata Communications Q1 results 

Last month, Tata Communications reported a sequential increase of 17.2 per cent in consolidated net profit to Rs 382 crore for the quarter ended June 30, beating analysts' estimates. 

Its revenue grew 4.4 per cent to Rs 4,771 crore for the first quarter of the current financial year compared with the previous three months, according to a regulatory filing. 

The telecom company reported Rs 1,024 crore in earnings before interest, taxes, depreciation and amortisation (EBITDA) for the April-June period as against Rs 1,034 crore for the three months to March 31. 

Its margin — a key measure of profitability — came in at 21.5 per cent as against 22.6 per cent three months ago.  

According to Zee Business research, Tata Communications' quarterly net profit was estimated at Rs 310 crore, revenue at Rs 4,700 crore, EBITDA at Rs 1,050 crore and margin at 22.3 per cent.

The Tata group company registered revenue growth of 6.6 per cent to Rs 3,931 crore in the data segment on a quarter-on-quarter basis. Revenue from voice operations, however, declined 9.5 per cent to Rs 418 crore.

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