Tata Communications rose 1.52% to Rs 226.50 at 15:05 IST on BSE after the company said it has been selected by Mott MacDonald as its global telecommunications partner for the next five years in a deal worth over $20 million.
The company made the announcement during trading hours today, 10 April 2013.
Meanwhile, the S&P BSE Sensex was up 213.68 points or 1.17% at 18,440.16.
On BSE, 12,000 shares were traded in the counter as against average daily volume of 18,376 shares in the past one quarter.
The stock hit a high of Rs 228.20 and a low of Rs 222 so far during the day. The stock had hit a 52-week high of Rs 266.35 on 26 July 2012. The stock had hit a 52-week low of Rs 190.65 on 22 May 2012.
The stock had outperformed the market over the past one month till 9 April 2013, sliding 2.75% compared with the Sensex's 7.4% fall. The scrip had, however, underperformed the market in past one quarter, declining 10.8% as against Sensex's 7.32% fall.
More From This Section
The mid-cap company has equity capital of Rs 285 crore. Face value per share is Rs 10.
Tata Communications said it was chosen by Mott MacDonald as its global telecommunications partner as a result of the company's comprehensive range of integrated and unified communications solutions that will allow the diverse global management, engineering and development consultancy to consolidate its multiple regional systems onto a single platform. The move will create new levels of global collaboration as well as a solid competitive advantage, Tata Communications said in a statement.
Tata Communications said that the deal marks a strategic alliance between the two companies which will provide renewed centralised communications for Mott MacDonald. The significant investment by the consultancy will further enhance project collaboration between nearly 15,000 employees across 50 countries worldwide. Tata Communications' redesign of its WAN environment and infrastructure for global unified communications will enable Mott MacDonald to centralise business collaboration tools such as document management systems into the cloud, allowing enhanced accessibility for projects requiring real-time international collaboration. It will also create new levels of communication throughout the organisation, optimising Mott MacDonald's investment in Microsoft Lync as the common global communications tool for both internal and external communication, Tata Communications said in a statement.
Commenting on the development, Claude Sassoulas, Managing Director, Europe, Tata Communications said, "Effective centralisation of systems only works when you have a solid and robust telecommunications infrastructure to underpin the business activity. What we have created for Mott MacDonald is a solution that not only improves architecture, availability, capacity, performance and management of the network but also builds a level of integrated communication and collaboration that will power the business both now and in the future. It is a major undertaking that will use all of our experience in delivering centralised IP voice and data services worldwide, across a range of emerging and regulated markets".
Darren Russell, Mott MacDonald's Global IT Director said, "With over 168 offices around the world and projects in 140 countries, Mott MacDonald can bring together and access an enormous wealth of talent, insight and information. This is a key factor in maintaining our business advantage in the marketplace. Investing in this project will provide us with the ease of access needed to keep us at the top of our industry. Tata Communications was one of a small group of companies that had the level of global expertise, including emerging market experience, that we needed for such an enormous project. Tata Communications' willingness to commit to the most stringent of service level agreements, along with its breadth of quality services, made them the obvious choice of partner.".
On consolidated basis, Tata Communications reported net loss of Rs 201.01 crore in Q3 December 2012, higher than net loss of Rs 153.06 crore in Q3 December 2011. Net sales rose 23% to Rs 4434.11 crore in Q3 December 2012 over Q3 December 2011.
Tata Communications along with its subsidiaries is a leading global provider of a new world of communications. The Tata Global Network includes one of the most advanced and largest submarine cable networks, a Tier-1 IP network, with connectivity to more than 200 countries across 400 PoPs, and nearly 1 million square feet of data center and collocation space worldwide. The company has strategic investments in South Africa (Neotel), Sri Lanka (Tata Communications Lanka) and Nepal (United Telecom).
Powered by Capital Market - Live News