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Tata Teleservices reduced its losses by 33% in Q1FY19

Tata Teleservices (Maharashtra) has reported a loss of Rs 454.43 crores for Q1FY19 which is 33% lower than the loss of Rs 681.53 crores it incurred in Q4FY18. In the corresponding quarter of 2017, the company had reported a slightly higher loss of Rs 506 crores. Note that this is the company's 31st loss-making quarter. Revenues fell to Rs 335.34 crores in Q1FY2019 from Rs 548.38 crores in the corresponding quarter last year, a drop of 38%. Revenue is also 20% lower than that of last quarter which stood at Rs 419.33 crores. The telco reduced expenses by a significant 30% to Rs 298.28 crores from Rs 434.36 crores in the corresponding quarter of 2017. Note that the company had stopped providing segmented information on the contribution of VAS and data revenues to its total telecom operations revenue since 2013. The company incurred a restructuring cost of Rs 90 crores in this quarter. The accumulated losses of the company exceed its paid-up capital and reserves. Being in net loss since over 30 quarters, the company's liabilities exceeded assets. Merger with Airtel In October 2017, Bharti Airtel and the Tata Group agreed to merge the Consumer Mobile Businesses (CMB) of Tata Teleservices Limited (TTSL) and Tata Teleservices Maharashtra Limited (TTML) into Airtel. The merger was implemented on July 19, 2018, subsequent to Q1FY19; the impact of the merger on financials has not been accounted for in this quarter. However, the company did record an impairment loss of a nominal Rs 1…

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