by Surabhi Nijhawan
Tata Teleservices Maharashtra reported a loss of Rs 8198 crore for Q2 ending September 2017 which increased exponentially from the loss of Rs 468 crores in the same period last year. Note that this is company’s 28th loss-making quarter.
In terms of revenues, it fell down to Rs 516 crore in Q2FY18 from Rs 727 crore last year, representing a decrease of 29%. There was a dip of 27% in expenses as well with Rs 392 crore for the quarter. Note that the company had stopped providing segmented information on the contribution of VAS and data revenues to its total telecom operations revenue.
There was an extensive loss of Rs 7708 crore towards impairment loss on its consumer mobile business.
The accumulated losses of the company exceed its paid-up capital and reserves. Further, TTML reported a reduction of 29% on its total income to Rs 516.52 crore in the reported quarter from Rs 727.54 crore from last year.
Merger with Airtel
In October 2017, Bharti Airtel and the Tata Group agreed on an agreement to merge the Consumer Mobile Businesses (CMB) of Tata Teleservices Limited (TTSL) and Tata Teleservices Maharashtra Limited (TTML) into Airtel.
This merger will be carried out on a debt-free cash-free basis, with one exception: Airtel will have to pay a part of Tata’s unpaid spectrum liability to the Department of Telecom (DoT), on a deferred basis. The current employees of TTSL and TTML will be demerged across the CMB business and the EFL (Enterprise and Fixed Line and Broadband) business, and are expected to be moved within the Tata Group at a later date.
As of June 2017, TTML had 78,06,119 subscribers against 81,25,718 in May 2017. The users in wireline segment had increased the ones in the mobile segment had decreased in June 2017 when compared to May 2017 reported the infoline.