Sistema Shyam Teleservices (SSTL), on Monday, reported widening of net loss at Rs.643.9 crore for the January-March 2013 quarter, impacted mainly by one-time “exit cost” as it shut down operations across 13 telecom circles during the period. The company, which operates under MTS brand, had posted a net loss of Rs.527.8 crore in year-ago period.
SSTL won spectrum in eight telecom circles — Delhi, Kolkata, Gujarat, Karnataka, Tamil Nadu, Kerala, Uttar Pradesh (West) and West Bengal — in the March auctions, after 21 of its 22 permits were cancelled as a part of Supreme Court order in February 2012.
The company’s revenue for the first quarter declined by 14 per cent to Rs.352 crore from Rs.407.2 crore.
However, operating loss (operating income before depreciation and amortisation) narrowed to Rs.211.3 crore from Rs.362.1 crore a year earlier.
President and CEO Vsevolod Rozanov told reporters here that this was the lowest quarterly OIBDA loss recorded by the company in the last three years as a result of “cost optimisation, strict control over marketing and other expenditure and on account of operational efficiencies”.
One-time exit cost
Chief Financial Officer Sergey Savchenko said the company had a Rs.170 crore write-off on account of “one-time exit cost due to closure of operations in 13 circles.”
