Tata Tele Maharashtra Q2 loss narrows to Rs 341 crore

Telecom operator Tata Teleservices Maharashtra on Thursday reported narrowing of its loss to Rs 341 crore for the quarter ended September.

The company had posted a loss of Rs 2,334 crore in the same period a year ago.

“The accumulation of losses of the company as of September 30, 2020 exceeded its paid-up capital. The company has incurred net loss for the quarter and half year ended September 30, 2020 and the company’s current liabilities exceeded its current assets as at that date,” Tata Teleservices Maharashtra Limited (TTML) said in its financial report.

It further said it has obtained a letter of support from its promoter indicating that the promoter will take necessary actions to organise for any shortfall in liquidity during the period of 12 months from the balance sheet date.

The revenue of Tata Teleservices, which provides only enterprise services, declined by 4.7 percent to Rs 260 crore during the reported quarter from Rs 273 crore in the corresponding period of 2019-20.

TTML said that it has provided for Rs 2,423.37 crore towards licence fee, spectrum usage charges, interest, penalty and interest on penalty arising out of the Supreme Court order on adjusted gross revenue as on March 31, 2020.

According to the Supreme Court (SC) order, telecom companies are required to pay 10 per cent of total demand raised by the Department of Telecom by March and the rest of the payments in 10 annual instalments.

“TTML has made a payment of Rs 639.39 crore and will ensure ongoing compliance with the SC orders,” the company said.

TTML has recorded an incremental provision of Rs 827.28 crore during the half year ended September 30, 2020 to give effect to the differential amount between the amount of AGR dues stated as final in the SC order as well as for subsequent period for which demands have not been received till date and the provision up to March 31, 2020, the company said. PTI