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Sistema Shyam TeleServices Ltd (SSTL), which operates under MTS brand, on Tuesday reported a net loss of Rs 528 crore for the first quarter ended March 31, 2012. It posted a loss of Rs 666 crore in the corresponding period last year.
The company's revenue was up 72 per cent at Rs 407 crore during the quarter against Rs 236 crore in a year ago. Revenue growth was driven by 57 per cent increase in subscriber base over first quarter 2011. By the end of first quarter 2012, SSTL expanded its high-speed mobile data services to over 400 towns in India, it said.
SSTL's mobile subscriber base increased by 5.3 per cent quarter-on-quarter and reached 15.82 million customers as of March 31, 2011. Its subscriber market share increased to 1.72 per cent in the first quarter 2012 compared with 1.68 per cent in the fourth quarter 2011.
SSTL's data card subscriber base for the quarter was also up 15 per cent to 1.54 million subscribers. It added 0.21 million data card subscribers.
“In spite of numerous legal and regulatory challenges being faced by the telecom industry, SSTL has delivered strong results,” Mr Vsevolod Rozanov, President and Chief Executive Officer, SSTL, said.
He said non-voice revenues continued to grow in double digits and contributed more than 35 per cent to the total revenues.
Capacity expenditure investments made by SSTL at the end of March 31 stood at Rs 6,474 crore including Rs 121.3 crore made during the first quarter of this year. However, the company's accumulated losses aggregated Rs 8,425 crore.
The consolidated debt from banks and financial institutions stood at Rs 8,285 crore, the company said. “The quarter also saw the shareholders approve an increase in the authorised capital base to Rs 12,000 crore by including non-convertible and redeemable preferences shares,” Mr Sergey Savchenko, Chief Financial Officer, SSTL, said.
This would strengthen its capital structure and provide opportunity to reduce cost of funding, including added flexibility to raise finances for its expanding business operations across India, he added.
>ronendrasingh.s@thehindu.co.in
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