Telecom operator Tata Teleservices (Maharashtra) today reported widening of its loss to Rs 506 crore in the first quarter ended June 30, hit by fall in revenue and over two-fold jump in finance cost. The company had registered a loss of Rs 127.45 crore in the same period a year ago. The finance cost of the debt-ridden company increased to Rs 388.17 crore during the reported quarter from Rs 179.1 crore recorded a year ago.
Tata Teleservices has failed to satisfy its lenders for long-term loans and external commercial borrowings which may lead to lenders recall loan worth Rs 1,911.11 crore, a note said. The company has received support from its parent firm Tata Sons, indicating fund infusion in the firm for payment of loans in case lenders recall it. “…the company is confident of its ability to meet funds requirement and to continue its business as a going concern…,” the note said.
The total income of Tata Teleservices in April-June period declined by about 26 per cent to Rs 554.15 crore from Rs 745.4 crore in the same period a year ago. Shares of Tata Teleservices closed at Rs 7.29 a unit, down by 3.32 per cent compared to previous close, at the BSE today.