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Tata Teleservices tanks 5% on Q3 flop show

Shares of Tata Teleservices dropped 5 per cent in early trade Wednesday as the firm reported a widening of losses to about Rs 302 crore for the third quarter of the current financial year.

The firm had reported a loss of Rs 298 crore over the same period a year ago.

The company’s revenue from operations, however, rose 2 per cent on-year to Rs 284.2 crore in October-December.

The stock tanked to a low of Rs 171.80 as against Rs 180.80 at previous close on the National Stock Exchange.

The company’s accumulated losses as of December 31, 2021, have exceeded its paid-up capital and reserves, reports said.

“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 Teleservices said in an exchange filing.

According to reports, the company however said 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.

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. END

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