Tata Communications limited (TCL) is one of the part of US$ 29 billion TATA group. The company is a leading provider of new world of communications. To become the leading integrated provider of telecommunication solutions the company acquired many domestic and global telecommunication providers. Now it is the unified global brand for VSNL, VSNL International, VGSL, Tata Indicom and CIPRIS. Tata communication provides a wide range of services including transmission, mobile services in the brand name of Tata Indicom, managed network connectivity, business transformation services to global and Indian enterprises. The company also provides broadband services. Tata communication has the most advanced and largest submarine cable networks. The company has wide network connecting globally more than 200 countries across 300 PoPs.

It serves customers from its offices in 80 cities across 40 countries. As the Asian countries are developing very fast, the company has to expand & compete with its global rivals while meeting the needs of consumers. The company is in the process of completing additional submarine cable systems to serve clients in those regions. For the global expansion plans the company is planning to invest more than US $2 billion over the next three years. The company entered in to an agreement with NEOTEL, South Africa's first converged communication network, for the further expansion of network into Africa. It recently entered in to an agreement with Eskom and Transnet of Africa to acquire their 30% interest in Neotel. TATA communications is the first global telecom company to access the Chinese market by an equity joint venture with Chinese Enterprise Communication Limited. This will enable the company to secure connectivity and advance  services. The company is planning to expand its global MPLS.
FINANCIALS

The company announced its Q4 results recently. The net profit was at Rs.588.6 million for the quarter ended march 2008 against Rs.1312.6 million for the same period last year. The revenues of the company were at Rs.8502.4 million against Rs.1047.2 million on QoQ basis and versus Rs.10842.2 million on YoY basis. In this quarter sales declined to Rs.8502.4 million from Rs.10842.2 million in the same period last year.

PEERS

The company stands last place when compared with its rival companies. The Company needs to initiate strategic plans to improve their marketing capacity in India. The call rates of TATA Indicom are sill the same despite Airtel and Vodafone lowered the rates. In order to compete with these strong rivals the company needs to expand its network in India.

The stock is now trading between Rs. 350-400.It is evident from the chart that the price is on a down trend. Now the stock is highly volatile. Near term traders may sell the stock at the level of Rs. 430-440. The long term investors may wait and accumulate the stock when the price gets stabilized at  Rs 350.