BackGTL Infra net loss widens to `196.69 crore
This was the 22nd consecutive quarter where the company has reported losses
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Mumbai: Telecom infrastructure firm GTL Infrastructure Ltd on Wednesday said its net loss widened to ₹ 196.69 crore in the June quarter from ₹ 156.12 crore a year ago due to higher provisions for doubtful advances and interest costs.
This was the 22nd consecutive quarter where the company has reported losses. The last time the company made a profit was in the December quarter of 2009.
Net sales for the quarter rose 5.4% to ₹ 153.71 crore as compared to ₹ 145.79 crore last year same quarter.
Interest cost rose 2.8% from a year ago to ₹ 100.41 crore while foreign exchange loss was at ₹ 20.40 crore from ₹ 6.64 crore.
Exceptional loss for the June quarter was ₹ 106.55 crore as against of ₹ 58.75 crore a year ago.
In a notice to stock exchanges, the company said it has placed orders on various vendors to procure tower assets and made advances against those orders. “Accordingly, it had to short closed its commitment to venders and is currently planning to take appropriate steps against them for recovery of these advances. As of June 2015, provisions for doubtful advances of ₹ 101.13 crore".
“The company has evaluated its non-current investments for the purpose of determination of potential diminution in value based on the latest available information of the investee companies. As of June quarter, provision for diminution was at ₹ 5.42 crore," it added.
The company said that in order to improve its operating result and cash flows it has taken various measures such as cost optimisation, improving operating efficiency and renegotiation of contracts with customers. Also to improve its debt position, it is contemplating bi-lateral/multi-lateral settlements either one time, negotiated or otherwise with its lenders.
As of March 2015, the company has total debt of ₹ 4826.17 crore.
GTL Infrastructure has entered into a master services agreement (MSA) with telecom operators for up to 15 years, the company said in a statement.
“Invoices are raised on these operators for provisioning fees and recovery of pass through expenses as part of the said MSA. The amounts outstanding from certain operators are subject to confirmations/under reconciliation. The management is of the view that all the outstanding trades receivables are good for recovery except for which provision has already been made," the company said.
On Wednesday, GTL Infrastructure Ltd shares ended at ₹ 2.56 on BSE, down 6.6% from previous close while India’s benchmark Sensex index fell 1.3% to close at 27512.26 points.
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