New Delhi: Debt-ridden
Reliance Communications on Friday posted a consolidated loss of Rs 30,142 crore for July September 2019 due to provisioning for liabilities after the Supreme Court ruling on statutory dues.
The company, which is going through insolvency process, had made a profit of Rs 1,141 crore in the corresponding three months a year ago.
During July-September 2019, the company set aside Rs 28,314 crore on account of provisioning following the Supreme Court order on calculation of annual adjusted gross revenue (AGR) of telecom companies.
The apex court last month upheld the government’s position on including revenue from non-telecommunication businesses in calculating the annual AGR, a share of which has to be paid as licence and spectrum fee to the exchequer.
Total liability on telecom operators after the SC ruling is estimated to be around Rs 1.6 lakh crore, of which Rs 1.33 lakh crore due has to be paid by the companies that are operational.
7 worst ever quarterly losses in India Inc’s history
See Red
15 Nov, 2019
As the September quarter earnings season is nearing its close, two hefty losses by telecom major Bharti Airtel and Vodafone Idea wrecked the profit metric of India Inc, resulting in another major miss on the corporate earnings.ETMarkets.com compiled seven worst such quarterly numbers that Indian companies reported in recent times.
Vodafone Idea | September quarter 2019 | Rs 50,922 crore
15 Nov, 2019
Telecom major Vodafone Idea dethroned Tata Motors to post largest ever loss by an Indian company. The firm reported a loss of Rs 50,922 crore for the quarter ended September 30, as it made a provision for Supreme Court’s ruling on payment of average gross revenue (AGR) dues.
Consequent to the recent judgement by Supreme Court, the company said it has accounted for the estimated liability of Rs 27,610 crore related to license fee and Rs 16,540 crore related to spectrum usage charges up to September 30including the interest, penalty and interest thereon of Rs 33,010 crore.
Tata Motors | December quarter, 2018 | Rs 26,961 crore loss
15 Nov, 2019
Tata Motors announced a non-cash exceptional charge to cut the book value of capitalised investments. The company said it had to take the accounting adjustment as part of ‘charge’ and Accelerate ‘transformation’ programmes to enable Jaguar Land Rover to counter the multiple economic, geopolitical, technological and regulatory headwinds impacting the automotive industry currently. Analysts have cut Tata Motors’ earnings estimate by up to 35 per cent post results.
Bharti Airtel | September quarter, 2019 | Rs 23,044 crore loss
15 Nov, 2019
Bharti Airtel on Thursday reported its biggest quarterly losses at Rs 23,044 crore for the quarter ended September 30, affected by Rs 28,450 crore provisions towards adjusted gross revenue (AGR) dues. The AGR provision amount includes principal amount of Rs 6,164 crore, interest Rs 12,219 crore, penalty Rs 3,760 crore and interest on penalty Rs 6,307 crore.
The company said it will require significant additional financing to discharge its obligations under the Supreme Court Judgement. Airtel added that there can be no assurance of the success of management’s plans to raise funds in a timely manner.
IOC | June quarter, 2012 | Rs 22,451 crore loss
15 Nov, 2019
Before Tata Motors, the record of worst quarterly profit was held by Indian Oil Corporation for over six years. The oil refiner in August 2012 reported worst quarterly loss ever of Rs 22, 451 crore for June quarter of 2012 (Q1FY13) despite low crude prices. The state-run company suffered a foreign exchange loss of Rs 3,187 crore and an inventory loss of Rs 4,062 crore. The freeze on diesel, kerosene and cooking gas prices, depreciation of the rupee and interest costs also hurt the PSU. For the quarter, the refiner had to incur Rs 1,849 crore in tax burden due to a delay in government compensation.
RCom’s total liability includes Rs 23,327 crore licence fee and Rs 4.987 crore spectrum usage charges.
RCom and its subsidiaries did not provide interest of Rs 1,210 crore and foreign exchange variation of Rs 458 crore.
“Had the company provided interest and foreign exchange variation, the loss would have been higher by Rs 1,668 crore…for the quarter,” RCom said.
Revenue from operations of RCom dipped to Rs 302 crore during the reported quarter from Rs 977 crore it recorded in the corresponding period of 2018-19.
RCom shares closed at Rs 0.59 apiece, down by 3.28 per cent compared to previous close, at BSE.
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