MTNL net loss comes down to Rs 730 cr in second quarter

State-run telecom firm MTNL has reported standalone net loss of Rs 730.44 crore for the second quarter ended September 30. The company had posted a net loss of Rs 834.22 crore in the same quarter a year ago.

Net revenue from operations declined by 7.46 per cent to Rs 787.21 crore during the quarter from Rs 850.72 crore in the same period previous year. The company declined both in terms of mobile and landline revenue during the period.

MTNL said it has closed down its CDMA business in Delhi and it has not carried any impairment test on value of the fixed assets till the end of reported quarter.

 

"Due to recurring losses incurred by the company and uncertainty in the achievement of projections made by the company, we were unable to comment on the provisions, if any, required in respect of impairment of carrying value of the fixed assets and its consequential impact on loss for the quarter," MTNL said.

The Department of Telecom has issued revised demand notice as one-time spectrum charges for its excess spectrum holding for both GSM and CDMA services amounting to Rs 3,205.71 crore compared with Rs 3,315.15 crore. The company has surrendered part of its CDMA spectrum holding which was used by government in auctions that concluded in March. However, the company did not make any provision for the amount in liability as spectrum charge demand is sub-judice.