Tata Teleservices Maharashtra reported a loss of Rs 480.75 crore for Q3 ending December 2017 which is significantly lower than the loss of Rs 8198.31 crore the company reported last quarter. In the same quarter of the previous year, the company had reported a loss of Rs 414.74 crore. Note that this is company’s 29th loss-making quarter.
In terms of revenues, it fell down to Rs 419.36 crore in Q3FY18 from Rs 673.40 crore in the same quarter last year, representing a YoY decrease of 37.7%. There was a YoY dip of 2% in expenses as well with Rs 384.36 crore for this quarter. Note that the company had stopped providing segmented information on the contribution of VAS and data revenues to its total telecom operations revenue.
A loss of Rs 129.26 crore was attributed to restructuring costs this quarter (Q3FY18). In the previous quarter (Q2FY18), a massive Rs 7708.63 crore loss was blamed on impairment loss on its consumer mobile business.
The accumulated losses of the company exceed its paid-up capital and reserves.
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.