Telecom firm Sistema Shyam Teleservices Ltd (SSTL), in which Russian business conglomerate Sistema has a controlling stake, on Monday reported a net loss of Rs 1,180 crore in the second quarter of 2012, compared to Rs 657 crore in the same period last year.
The company has attributed the widening of net losses for the April-June quarter this year to the fall in rupee against dollar.
"SSTL's net income during the quarter suffered from the adverse movement in exchange rate resulting in recording of forex losses with respect to Long Term Foreign Currency-denominated loans, as rupee depreciated considerably against the dollar during the quarter," SSTL Chief Financial Officer Sergey Savchenko said here.
| MOUNTING LOSS | |||
| Q2 2012 (Rs cr) | Q2 2011 (Rs cr) | Y-O-Y growth in % | |
| Revenues | 417 | 278 | 50 |
| Net profit/loss | -1,180 | -657 | -79 |
| Total subscribers | 16.6 mn | 11.7 mn | 110 |
| Source:Industry | |||
2G auction participation
SSTL, whose telecom licences got cancelled by an apex court order in February, on Monday said it would take a final decision to participate in the coming auction only after the government comes up with “an amicable solution”, assuring protection of its investments.
“We are to decide on whether we will be participating in the auction. We have received a verbal assurance from the government that all issues would be resolved amicably.
