Tata Teleservices Maharashtra Limited (TTML), which has the license to provide services in Maharashtra and Goa, on Tuesday reported a net loss (before exceptional items) of Rs 481.43 crore for its first quarter ended June 30, 2017, against net loss of Rs 108.07 crore in the same period last year. The company’s total comprehensive loss, however, stood at Rs 506 crore in the first quarter, as per the BSE filing.
TTML, which offers CDMA, GSM and 3G services, reported Rs 554.15 crore income from operations for the quarter, which has declined 7% from the previous quarter. It reported EBITDA of Rs 120 crore for the quarter, which has declined 6% from the previous quarter.
TTML had last month received a nod from its Board of Directors for the proposal to raise up to Rs 1,300 crore through a mix of preference shares and debentures.
According to various media reports, Tata Sons is infusing Rs 12,000 crore more into Tata Teleservices, which will allow the telco to repay its debt and improve its financial metrics. The infusion is approved by the board led by Group Chairman N Chandrasekaran, who is working on devising a strategy for TTSL to help its navigate the competitive landscape.
The latest investment follows infusion of Rs 2,000 crore into Tata Teleservices in the financial year 2016-17.
Notably, the infusion development comes amid the speculation that Tata Teleservices’ merger talks with Reliance Jio after similar talks with Bharti Airtel fizzled out, according to reports.
Tata Teleservices recently reportedly approached its lenders, including the State Bank of India (SBI), to seek a restructuring of its debt, becoming the second telco to seek debt restructuring after Anil Ambani-owned Reliance Communications (Rcom). The telco wants bankers to restructure about Rs 30,000-crore of its total Rs 40,000-crore debt, which includes Rs 8,000-crore of deferred spectrum payments, according to a report by Business Line.
The Tata Group-owned telecom company has sought an extended maturity of 20 years for repayments. The telco has also requested for a fresh loan of Rs 5,000 crore, which it wants to use for operational and capital expenditure (capex) needs at a time when it is struggling to grow and stay relevant in a highly competitive telecom market.