Tata Communications, which reported consolidated loss of Rs 854 crore for 2010-11, plans a slew of measures, including turning around operations of Neotel in South Africa , to improve its performance, a senior official of the company said today.

It also intends to enhance hosting capabilities at its Neotel facility at Cape Town, in South Africa. The capacity expansion would be funded by revenues from its submarine cable business, Tata Communications'' chief financial officer Sanjay Baweja said today.

"Neotel will become EBITDA positive this fiscal year. As for Tata Communications, we have begun to address small and medium enterprises. This is a segment which is in the early stages of adopting information technology.

"We will provide network connectivity, virtual private network services, security services, as well as data centre and web hosting services to these enterprises. The company intends to drive down network costs and focus on productivity gains," Tata Communications' managing director and CEO Vinod Kumar said.

The company reported a net loss of Rs 854 crore for 2010-11 which includes a loss of Rs 551 crore on account of company's 49.01 per cent stakeholding in Neotel, South Africa.

The company reported net profit of Rs 160.16 crore for the year on a standalone basis against Rs 483.18 crore in the previous year. Based on the standalone net profit, the board of the company has proposed a dividend of Rs 2 per share.