Tata Tele Maharashtra Losses Narrow to Rs 454 Crore in June Quarter

By August 7th, 2018 AT 6:27 PM

Tata Teleservices Maharashtra today said its total comprehensive loss narrowed to Rs 454.46 crore for the three months ended June 30, 2018. The company, whose accumulated losses have exceeded its paid-up capital and reserves, said in a regulatory filing that it had secured a support letter from the promoters, indicating their willingness to organise for any liquidity shortfall in meeting financial obligations and repayment of debt. The company’s total comprehensive loss stood at Rs 681.26 crore in the March quarter and Rs 506.04 crore during the April-June previous fiscal.

tata-tele-maharashtra

Exceptional items during the quarter comprise restructuring cost of Rs 90.30 crore (Rs 135.04 crore in the preceding March quarter and Rs 264.30 crore for the last fiscal, reported PTI.

During the quarter ended September 2017, the company had recorded Rs 7,708.63 crore towards impairment loss on its consumer mobile business assets, based on the assessment of its recoverable value, and had disclosed the same as an exceptional item, it said.

Providing an update on the transfer of its consumer mobile business to Bharti Airtel, as announced in October 2017, Tata Teleservices said that on July 19, 2018, the company entered into a detailed implementation agreement with Bharti in relation to the scheme and the impact of the same will be provided in the next quarter, it added.

“Pending the required approvals, no impact of the proposed scheme has been considered in these financial results, except that company has made an assessment of assets and liabilities pertaining to consumer mobile business (disposal group) which are proposed to be transferred…,” it said.

Revenue from operations came is 39.5% lower at Rs 334.45 crore for the June quarter compared to Rs 553.09 crore in the year-ago period.

“The accumulated losses of the company as of June 2018 have exceeded its paid-up capital and reserves. The company has incurred a net loss during the quarter ended June 30, 2018, and the company’s current liabilities exceeded its current assets as at that date,” it said.

Tata Tele said it is in discussions to monetise “certain assets”, proceeds of which will be used to meet its financial obligations when they fall due.

“Further, the company has obtained a support letter dated May 28, 2018, from its promoter, indicating that the promoter will take necessary actions to organise for any shortfall in liquidity of the company that may arise to meet its financial obligations and timely repayment of debt,” it added.

Read more on:

Arpit spends his day closely following the telecom and tech industry. A music connoisseur and a night owl, he also takes a deep interest in the Indian technology start-up scene and spends rest of his time spilling poetry and stories on paper.

13
Leave a Reply

avatar
3 Comment threads
10 Thread replies
0 Followers
 
Most reacted comment
Hottest comment thread
10 Comment authors
Maratha | PuneNeha MiglaniChetan MalhotradragonmonkNikhil Mumbai-Pune Recent comment authors
newest oldest most voted
Sachin
Sachin

Tata data network is working fine in Goa….

Chetan Malhotra
Chetan Malhotra

TATA Sons have paid all bank dues against Tata Tele worth 25000 Crore in Jan 2018. While i am not thumping industry chest but signaling that whosoever has deep pockets should run the show and not company owned by vegetable , grossery, cement sellers etc. There was a safe window for business conglomerate to leave this sector but it chose to buy more spectrum and continue in debt pile and now even taken more debt of other company too… Turning around that business and bring profitability will be very HARD now….

Nikhil Mumbai-Pune
Nikhil Mumbai-Pune

They bought band 3 spectrum in Maharashtra and Mumbai too,right?

N KANAGADEEPAN, SIVAKASI (T.N.)
N KANAGADEEPAN, SIVAKASI (T.N.)

They are having liberated Band 3 spectrum of 5MHz each in AP, Mah and Mumbai.

Nikhil Mumbai-Pune
Nikhil Mumbai-Pune

I hope Airtel continues to expand their fibre roll out and doesn’t choke due to users from Tata Docomo after the merger.

dragonmonk
dragonmonk

@chetan One could say the same about Reliance Jio! Not only is Jio drowning in debt, but it is forcing other operators too!

Chetan Malhotra
Chetan Malhotra

@dragon, Jio is in profit so as to say!!! Others are doing mistake… Don’t just come jumping looking at comment and reply without logic…

Neha Miglani
Neha Miglani

@Chetan – Oh teri **Sweeten your mouth** Wish what you said comes true.

@dragonmonk – classic example when education, experience and common sense goes vain.

Maratha | Pune
Maratha | Pune

He’s a know-it-all. Everyone else either knows nothing or whatever they know is wrong cuz he says so.

Recent Posts

Reliance Jio Again Outranks Airtel by a Twofold Margin in 4G Download Speed Chart During January: Trai

Just a couple of days ago, network tracking portal, Ookla revealed its speed test report of Indian telecom operators in...

D2h Subscribers Will be Able to Enjoy Multiple Connections at Flat NCF of Rs 50

D2h was one of the first DTH operators in India to comply with the new Trai tariff mandate. Notably, the...

Sun Direct Unveils HD and SD Regional Base Packages In-Line With Trai Rules

South India’s popular Direct-to-the-Home (DTH) service provider, Sun Direct, has unveiled a wide-range DPO packages based on the new pricing...