Photo: Mint
Photo: Mint

RCom posts 30,142 cr loss in Jul-Sept quarter

  • The company had made a profit of 1,141 crore in the corresponding three months a year ago
  • Revenue from operations of RCom dipped to 302 crore during the reported quarter from 977 crore it recorded in the corresponding period of 2018-19

Debt-ridden Reliance Communications on Friday posted a consolidated loss of 30,142 crore for July September 2019 due to provisioning for liabilities after the Supreme Court ruling on statutory dues.

The company, which is going through insolvency process, had made a profit of 1,141 crore in the corresponding three months a year ago. During July-September 2019, the company set aside 28,314 crore on account of provisioning following the Supreme Court order on calculation of annual adjusted gross revenue (AGR) of telecom companies. The apex court last month upheld the government's position on including revenue from non-telecommunication businesses in calculating the annual AGR, a share of which has to be paid as licence and spectrum fee to the exchequer.

Total liability on telecom operators after the SC ruling is estimated to be around 1.6 lakh crore, of which 1.33 lakh crore due has to be paid by the companies that are operational. RCom's total liability includes 23,327 crore licence fee and 4.987 crore spectrum usage charges.

RCom and its subsidiaries did not provide interest of 1,210 crore and foreign exchange variation of 458 crore. "Had the company provided interest and foreign exchange variation, the loss would have been higher by 1,668 crore...for the quarter," RCom said.

Revenue from operations of RCom dipped to 302 crore during the reported quarter from 977 crore it recorded in the corresponding period of 2018-19. RCom shares closed at 0.59 apiece, down by 3.28% compared to previous close, at BSE.

Reliance Group companies have sued HT Media Ltd, Mint’s publisher, and nine others in the Bombay high court over a 2 October 2014 front-page story that they have disputed. HT Media is contesting the case.

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