Network service company GTL’s standalone losses widened 89% y-o-y to R170 crore in the March quarter, on account of dwindling revenues, which fell 35% to R354 crore in the quarter.
GTLsaid the power management business of the company has been affected by losses plagued by discoms, the reduction in tariff by various state governments, and termination of distribution franchise agreement by the Maharashtra State Electricity Distribution Company (MSEDCL) in Q3 FY15.
“The network services segment continues to be hit by cancellations of 2G licences, Aircel group’s suspension of tenancy commitments, and suspension of BSNL’s expansion (plans). This in view of overall setback in the company’s business operations, cash losses has been incurred, which has resulted in a substantial erosion of the company’s net worth,” GTL Ltd said in a statement. On a consolidated basis, GTL’s losses doubled to R1, 104 crore during Fy 15, on the back of a 5% decline in revenues to R2,496 crore.