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Tata Tele Q3 loss narrows to Rs 409 crore

Kolkata: Tata Teleservices (Maharashtra) Thursday said its total loss narrowed down to Rs 409.39 crore in the quarter to December 2018, from Rs 526.69 crore in the year-ago period.

The company’s total revenue in the fiscal third quarter fell over 25% on-year to Rs 324.31 crore. Depreciation & amortisation expenses fell a shade over 30% on-year to Rs 40.71 crore.

The telecom arm of the Tata Group said “its accumulated losses as of December 31, 2018, have exceeded its paid-up capital and reserves,” and that “its current liabilities exceeded its current assets as at that date”.

Tata Tele (Maharashtra) said it is “in discussion for monetisation of certain assets, proceeds of which, would be used to meet financial obligations when they fall due”.

The company also said it had secured a letter from promoters, indicating willingness to take necessary action to organise for any liquidity shortfall.

Tata Tele (Maharashtra) shares fell 2.04% to close at Rs 2.88 on BSE on Thursday.

Further, the company said there had been “a change in impairment charge” due to adjustments in the ordinary course of business, equivalent to Rs 2.11 crore for the nine-month ended December 2018.

Last July, Tata Tele (Maharashtra) had entered into a pact to implement the planned transfer of its consumer mobility business (CMB) to Bharti Airtel in step with a term sheet inked in October 2017.

However, the company said no impact of the July implementation agreement (IA) had been considered in the December quarter numbers, pending approvals.

However, it said it has made an assessment of assets and liabilities pertaining to the CMB (disposal group), which are proposed to be transferred, and recorded it at lower of its carrying amount as at December 31, 2018, and fair value less costs to sell, and has classified it as “assets held for sale”.