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

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.

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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.

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13 Comments on "Tata Tele Maharashtra Losses Narrow to Rs 454 Crore in June Quarter"

 

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Sachin
August 7, 2018 9:41 pm 9:41 PM

Tata data network is working fine in Goa….

Chetan Malhotra
August 7, 2018 6:44 pm 6:44 PM

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….

dragonmonk
August 8, 2018 2:29 pm 2:29 PM

@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
August 8, 2018 3:11 pm 3:11 PM

@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
August 8, 2018 4:24 pm 4:24 PM

@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
August 8, 2018 5:03 pm 5:03 PM

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

Nikhil Mumbai-Pune
August 7, 2018 7:44 pm 7:44 PM

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

Nikhil Mumbai-Pune
August 7, 2018 7:43 pm 7:43 PM

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

N KANAGADEEPAN, SIVAKASI (T.N.)
August 8, 2018 9:55 am 9:55 AM

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

Kiran Fernandes | Goa
August 7, 2018 6:35 pm 6:35 PM

Okay. Now Tata, please kys. Time for Tata, Aircel and Rcom to disappear. Even mtnl and bsnl should go if they’re not gonna work on getting spectrum for 4g. They’re just wasting spectrum by remaining in the playing field.

Kaushik IMA
August 8, 2018 12:52 pm 12:52 PM

Communications being an essential service, there must always be a government controlled company in the sector to ensure good quality of services for all.

If there was no BSNL providing rural connectivity and fiber to all, you can bet top dollar that none of the private telcos would have bothered.

Nikhil Mumbai-Pune
August 8, 2018 2:02 pm 2:02 PM

How BSNL and MTNL sustain in future if there no 4G and VoLTE in upcoming decade? Also their spectrum validity is coming to an end in 2020. What after that? They are holding 20Mhz of band 41 without any deployment. Jio/Airtel would have deployed that by now. It’s about customers getting services. Revenue model can be decided after that. Are the BSNL employees(for that matter government employees) sitting in the offices doing the work properly? Even after Jio onslaught they are doing nothing to save their jobs.

Nikhil Mumbai-Pune
August 7, 2018 7:42 pm 7:42 PM

They should have implemented circle by circle. City by city at least where load on the site is more. They haven’t done that. They should vanish by 2020 March.

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