Tata Teleservices (Maharashtra) has reported a loss of Rs 383 crores for Q2FY19 which is 15% lower than the loss of Rs 454 crores it incurred in Q1FY19. In the corresponding quarter of 2017, the company had reported a much higher loss of Rs 8,194 crores. Note that this is the company’s 32nd loss-making quarter.
Revenues fell to Rs 336 crores in Q2FY19 from Rs 502 crores in the corresponding quarter last year, a drop of 33%. Revenue over the last quarter remained flat.
The telco reduced expenses by a significant 29% to Rs 278 crores from Rs 392 crores in the corresponding quarter of 2017. Note that the company stopped providing segmented information on the contribution of VAS and data revenues towards its total telecom operations revenue starting 2013.
The company incurred a restructuring cost of Rs 108 crore 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 has entered an implementation agreement with Airtel to complete the merger. Assets pertaining to the CMB business worth Rs 1074 crore will be sold off to Airtel.