Tata Communications sells Chennai land for Rs 192.3 cr

NEW DELHI: Tata CommunicationsBSE 0.71 % today said it has sold a piece of land in Chennai for over Rs 192 crore in line with its objective of monetising non-core assets. 

In a filing to the BSE, Tata Communications said "the company has completed a sale transaction of the land parcel and building situated at Nungambakkam, Chennai, for a transaction value of Rs 192.3 crore. The above transaction is in line with the company's objective of monetising its non-core assets." 

This land parcel and building was earlier being used as a staff housing colony. The company has received the payment of entire amount of Rs 192.3 crore, the filing added. 

Shares of Tata Communications traded on
BSE closed 1.5 per cent down at Rs 225.85 in a weak stock market today. 

Last year in December, Tata Communications Managing Director and Group Chief Executive 
Vinod Kumar said the company will focus on cost reduction and cost rebalancing across the portfolio due to uncertain global economic outlook. 

"With associated issues such as surplus land and government equities, our hands are tied to some extent on how we can financially structure the company for optimal results. That is a challenge and, hopefully, it will get resolved in the coming quarter," he had said. 

Tata Group firm had reported a net loss of Rs 201 crore for the third quarter ended December 31, 2012 against a Rs 153.06 crore in the same period a year ago due to rise in expenditure. 

Its consolidated income from operations during the third quarter of 2012-13 fiscal rose by 23 per cent to Rs 4,434.11 crore from Rs 3,604.1 crore in the corresponding period last fiscal.