New Delhi: Tata Teleservices (Maharashtra) Ltd has reported a net loss of Rs8,198.34 crore in the July-September quarter, up 1651% from Rs468.14 crore a year ago.
The surge in loss is on account of the company recording Rs7,708.63 crore towards impairment loss during the quarter on its consumer mobile business assets based on assessment of its recoverable value.
A company records an impairment loss when it sees a drop in valuation in its assets. It results in a drop in the overall valuation of the company as well.
The provision for impairment loss on these assets has been allocated on a pro-rata basis to property, plant and equipment, capital work in progress and intangible assets based on their respective carrying values as of 30 September, the company informed stock exchanges.
The company’s total income from operations fell 29% on year to Rs516.25 crore while its total expenses declined by 27.29% on year to Rs392.22 crore in the quarter under review.
Bharti Airtel had in October announced the acquisition of the consumer mobile businesses of Tata Teleservices Ltd and Tata Teleservices (Maharashtra) Ltd on a debt-free, cash-free basis.
Tata Teleservices Ltd holds 36.54% stake in its associate company Tata Teleservices (Maharashtra) Ltd.