SSTLs net loss narrows to RS.779 crore in Oct-Dec

Written by feBureau | New Delhi | Updated: Apr 10 2013, 06:34am hrs
CDMA mobile operator Sistema Shyam Teleservices (SSTL) on Tuesday reported reduction in net loss at R778.7 crore for the quarter ended December, when the company was facing uncertainty over its operations in the country.

The company had reported a net loss of R1,197.7 crore during the same quarter a year ago. During the quarter, our focus was on retaining subscribers, controlling expenses and preparing for auctions, SSTL president and chief executive officer Vsevolod Rozanov said.

The net income benefitted due to improvement in OIBDA but the impact was completely offset by the unfavorable movement in exchange rate, SSTL said.

This, it said, resulted in recording forex losses with respect to long term foreign currency denominated loans, as the rupee depreciated against the dollar at the end of the quarter.

The operating income before depreciation and amortisation (OIBDA) loss of the company almost halved to R278.6 crore during the reported quarter from R569 crore in the year-ago period.

During the quarter the company continued to take steps to reduce its cash outgo. SSTL recorded its lowest full year OIBDA loss in the last three years, SSTL chief financial officer Sergey Savchenko said.

All but one licence of the SSTL were cancelled by the Supreme Court in February, 2012. The company had to bid for fresh spectrum in March 2013 to continue its operations.