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Sistema Shyam rings jarring tone, widens net loss by 22%

Sistema Shyam rings jarring tone, widens net loss by 22%
Telecom operator Sistema Shyam Teleservices (SSTL), which recently acquired fresh spectrum to continue operations in India, on Monday reported widening of net loss at Rs 643.9 crore for the first quarter ended 31 March, 2013. The company had posted a net loss of Rs 527.8 crore in the same period a year ago.
SSTL, which provides services under brand name of MTS, was required to win spectrum in March auctions to continue operations in service area where it wanted to operate following cancellation of its 21 out of 22 permits by the Supreme Court in February 2012.
The company during the quarter won fresh spectrum only in eight circles -- Delhi, Kolkata, Gujarat, Karnataka, Tamil Nadu, Kerala, Uttar Pradesh (West) & West Bengal -- for Rs 3,639 crore. The company is eligible to adjust Rs 1,626 crore from this amount, as per the government's decision, which it paid for the quashed licence.
SSTL's president and chief executive officer Vsevolod Rozanov said that the company invested Rs 36.4 crore during the first quarter of 2013 while debt from banks and financial institutions for the firm at the end of March 2013 stood at Rs 4,628 crore.
The net income of the company on quarterly basis, however, improved by around 17 per cent from net loss of Rs 778.7 crore it posted during the quarter ended 31 December, 2012.
'SSTL's net income during the quarter improved by 17 per cent quarter-on-quarter. The net income benefited due to improvement in OIBDA (Operating Income Before Depreciation and Amortisation),' Rozanov said here.
OIBDA loss of company narrowed to Rs 211.3 crore during the reported quarter from Rs 362.1 crore posted in the year-ago period.
Rozanov said this was lowest quarterly OIBDA loss recorded by company in the last three years as a result of cost optimisation, strict control over marketing and other expenditures and 'on account of operational efficiencies'. PTi
Agencies

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