BackTata Teleservices Q3 net loss widens, shares locked in upper circuit today
Shares of TTML were locked in upper circuit level of 5% on the BSE in Tuesday's trading session
PremiumTata Teleservices (Maharashtra) Ltd (TTML) reported net loss of ₹302 crore for the third quarter ended December 2021 as compared to ₹298 crore loss in the year-ago quarter. Shares of TTML were locked in upper circuit level of 5% on the BSE in Tuesday's deals. The stock has gained over 21% in the past five trading sessions.
The telecommunications company' revenue from operations rose about 2% to ₹284 crore from ₹278 crore year-on-year (YoY). The company said that its accumulated losses as of December 31, 2021 have exceeded its paid-up capital and reserves.
“The company has incurred net loss for the quarter and nine months ended December 31, 2021 and current liabilities exceeded its current assets as at that date. It has obtained a support letter from its Promoter indicating that the Promoter will take necessary actions to organize for any shortfall in liquidity during the period of 12 months from the balance sheet date," Tata Tele said in the earnings filing today.
Though, the company added that it is confident of its ability to meet the funds requirement and to continue its business as a going concern and accordingly, the financial results have been prepared on that basis.
“Fresh investors should avoid while those who have holding in this Tata group stock, should hold it further with trailing stop loss at ₹150 apiece levels," said Sumeet Bagadia of Choice Broking.
Earlier this month, Tata Tele had announced its decision to not opt for conversion of interest related to AGR dues into equity, as the interest amount eligible for such conversion has turned out to be far lesser than the company's own calculations.
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