Shares of Tata Teleservices (Maharashtra) Ltd. gained over 12% on Thursday, April 23, following the company's positive quarterly earnings announcement. According to reports from CNBC TV18, the stock hit an intraday high of ₹49.7 per share before settling at ₹45.28, representing a 2.1% gain for the day. However, the stock remains 38.7% below its recent 52-week high of ₹81.12 per share.
The company reported a net profit of ₹580.9 crore for the fourth quarter, marking a significant turnaround from the net loss of ₹306.4 crore recorded in the same period last year. As reported by CNBC TV18, this profitability was primarily aided by an exceptional gain of ₹662.8 crore. Revenue from operations declined by 4% year-on-year to ₹295.5 crore, while Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) grew by 7% to ₹162.7 crore from ₹151.8 crore in the previous year.
The company's profitability was significantly boosted by a ₹666.7 crore provision write-back during the quarter. According to CNBC TV18, this write-back resulted from the Department of Telecom sharing final adjusted AGR outstanding figures up to financial year 2019, which enabled the company to reassess its existing provisions. The write-back was marginally offset by a higher wage code impact of ₹4.05 crore during the quarter.
Operating profit margin demonstrated substantial improvement, increasing to 43.74% from 34.98% in the corresponding quarter of the previous year. As reported by CNBC TV18, this significant margin expansion reflects the company's enhanced operational efficiency and cost management efforts during the quarter.
