Sistema Shyam Teleservices today reported widening of net loss to Rs 760 crore for the third quarter ended September 30, 2013 mainly on account of forex losses and business restructuring.
The company had posted a net loss of Rs 495.5 crore in the same period a year ago.
“The net Income declined mainly on account of forex losses and business restructuring,” SSTL Chief Executive Officer Dmitry Shukov said.
Revenues of SSTL, which operates under MTS brand, also declined by about 30 per cent to Rs 284.4 crore during the reported quarter compared with Rs 404 crore in the same period a year ago.
“Revenue in Q3 2013 decreased by 30 per cent year-on-year to Rs 284.4 crore which was largely driven by closure of circles,” Shukov said.
The company’s immediate expansion plans are also uncertain as telecom regulator TRAI has declined to suggest auction price for CDMA spectrum within a definite timeframe set by the Department of Telecom.
SSTL has demanded putting CDMA airwaves for auction at a reduced price linked to 2G spectrum rates for which TRAI has recommended about 37 per cent lower base price.
“On the regulatory front, though 100 per cent FDI in telecom is a welcome move, we expect the government to provide a clear roadmap for the auction of 800 Mhz spectrum.
“This is a must for proliferation of data services and also for restoring investor confidence,” Shukov said.
The company has a target to turn the operating income before depreciation and amortisation (OIBDA) positive by the end of 2014.
OIBDA losses during the quarter narrowed to Rs 219.7 crore from Rs 354.1 crore.
During the quarter, SSTL made investments of Rs 40.4 crore. Debt from banks and financial institutions at the end of September stood at Rs 3,897 crore.
“In Q3 2013, operating parameters like average revenue per user and minutes of usage continued to improve. Going forward, with the launch of our 3G Plus network, we expect the company to come back to its high growth path,” SSTL Chief Financial Officer Sergey Savchenko said.