Tata Teleservices, on Wednesday, reported a net loss of Rs 275 crore for the third quarter this fiscal, narrower than the Rs 409 crore loss posted in the corresponding quarter previous fiscal.
Despite incurring a net loss for the October-December period, the company’s parent, Tata Sons has assured that it will arrange funds for the distressed arm to meet its business requirements for the coming year.
“The Company has obtained a support letter from its Promoter indicating that the Promoter will take necessary actions to organize for any shortfall in liquidity during the period of 12 months from the balance sheet date,” TTSL said in its quarterly report published after market hours on Wednesday.
“Based on the above, the Company is confident of its ability to meet the funds requirement and to continue its business as a going concern,” TTSL said.
TTSL has made additional provision of Rs 2,151 crores during the December quarter pertaining to its Adjusted Gross Revenue (AGR) dues, up from Rs 1,919 crore provisioned in the previous quarter. Post the dismissal of review plea filed by TTSL and other telcos by the Supreme Court, it has moved a modification plea along with other and is also exploring further legal recourse.
“The Company and other operators have filed modification applications in the SC seeking modification of Supplementary Order dated October 24, 2019 to allow the Company and Department of Telecommunication to conduct the exercise for ascertaining and payment of the amounts due,” it said.
Tata Teleservices, which has sold its consumer mobility business to Bharti Airtel, faces AGR dues of nearly Rs14,000 crore.
TTSL’s total revenues for the said quarter were down 20% on-year at Rs 258.76 crores while earnings before interest tax depreciation and amortization were up 49% at Rs 134.67 crores.
TTSL’s stock closed 1.10% higher on Wednesday on BSE at Rs 2.75 per piece.―Business Telegraph