Shares of Tata Teleservices (Maharashtra) Ltd. gained over 12% on Thursday, April 23, after the company reported a positive set of earnings for the fourth quarter. However, the stock gave up most of those gains, only to end 2% higher.
The company’s revenue from operations for the quarter declined by 4% from the year-ago period to ₹295.5 crore.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) during the quarter grew by 7% year-on-year to ₹162.7 from ₹151.8 crore.
Tata Teleservices (Maharashtra) reported a net profit of ₹580.9 crore, compared to a net loss of ₹306.4 crore last year. The profitability was aided by an exceptional gain of ₹662.8 crore.
During the quarter, the Department of Telecom shared the final adjusted AGR outstanding figures up to financial year 2019, based on which, the company reassessed its existing provisions, and that resulted in a significant write-back of ₹666.7 crore. This was marginally offset by higher wage code impact of ₹4.05 crore.
Operating profit margin during the quarter increased to 43.74% from 34.98% last year, according to the company’s income statement.
Shares of Tata Tele gained 12.2% to hit an intraday high of ₹49.7 apiece on Thursday. However, the stock ended only 2.1% higher at ₹45.28. The stock is down 38.7% below its recent 52-week high of ₹81.12 apiece.
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