SSTL trims Q3 net loss to Rs 495.4 crore
20 November 2012
Sistema Shyam Teleservices Ltd (SSTL), a joint venture between Russia's Sistema and India's Shyam Group, trimmed its net loss to Rs 495.4 crore in third quarter ended September 30, compared with a net loss of Rs 1,009.7 crore posted during the same period a year ago.
SSTL, which provides CDMA services under the `MTS' brand, posted a 23 per cent rise in revenues at Rs 404 crore during quarter under review, as against Rs 328.2 crore recorded during the same quarter a year ago.
The company's consolidated revenues fell 3.3 per cent on a quarter-on-quarter basis to Rs 404 crore. The total wireless (both voice and data) subscriber base for the quarter was marginally up at 16.60 million.
''The telecom industry continues to suffer due to regulatory actions. In a seasonally weak quarter the revenues of SSTL were impacted. The revenues declined for the first time since the start of the company's operations. The subscriber growth during the quarter also suffered on account of uncertainties in the operating environment and due to the predatory practices adopted by competition,'' SSTL President and Chief Executive Officer Vsevolod Rozanov said.
''Going forward, the plan includes to continue our focus on driving operational efficiencies. In addition, the company's immediate priority is to look at the outcome of its curative petition filed in the Supreme Court,'' Rozanov said.
On February 2, 2012, the Supreme Court had cancelled 21 licences of SSTL following the 2G spectrum scam. (See: SC cancels all 2G licences, orders fresh spectrum auction).
SSTL had invested Rs 6,550 crore on capacity expansions till 30 September, while its consolidated debt stood at about Rs 8,064 crore.
The company had earlier decided not to take part in the second generation (2G) spectrum auction, citing high spectrum prices.