Tata Communications losing out in the market due to quarterly losses

Shares of Tata Communications Ltd., a provider of international telephony networks, fell to 3-week lows after the company said its quarterly loss widened.

Tata Communications said its first quarter losses rose to 33.9 crore rupees compared with 21.4 crore rupees in the same quarter a year ago. Sales during April-June gained marginally to 5,207 crore rupees from 5,111 crore rupees in the year ago period.

Tata Comm fell 7 percent, or 33 rupees, to 442 rupees, its lowest level since July 9th, on the National Stock Exchange, where 6 lakh shares were traded in the first 35 minutes of trade compared with the 5-day average of 4.2 lakhs.

Tata Communications' market capitalisation has fallen 20 percent in the past one year to 13,450 crore rupees as investors stayed away from commoditised businesses facing heavy global competition.

(Image credits: Indiatimes)