Tata Teleservices announced financial results for the FY15 and reported Rs. 3,846 crore loss. As per the reports published in Business Standard, the primary reason for this performance is said to be the increased cost factor. Tata Sons, the Holding Company of Tata Tele, helped the company with an additional sum of Rs. 1,025 crore to ensure that it met its financial obligations.
The revenues of Tata Teleservices increased slightly from Rs 10,452 crore to Rs 10,944 crore in 2013-14, yet it failed to end the fiscal year 2015 on a profitable note. Reports claim that the only reason for the increased revenue in FY15 was Rs 2,500 crore help provided by Tata Group in the form of compulsorily convertible preference shares. The previous fiscal year was no different from the year before in terms of financial performance. The loss amount touched Rs. 3,846 in 2014-15, while it totaled Rs. 6,166 in 2013-14.
The company has claimed that increased cost has resulted into this performance. Finance costs of the company increased to Rs. 2,640 crore in FY15 from Rs. 2,512 crore in the year before. The debt of Tata Teleservices rose from Rs 24,506 crore in 2013-14 to Rs 27,082 crore in 2014-15.
The Tata group is looking forward to merging Tata Teleservices with Telenor in India to bring it out of this meager financial situation.