The financial metrics of the unlisted Tata Teleservices, telecom venture between the Tatas and Japanese telecom major DoCoMo, continued to deteriorate in fiscal 2013, with its net worth completely eroded for the first time.
The net worth has turned negative at Rs 1,863 crore (Rs 18.63 billion) as against a positive Rs 2,996 crore (Rs 29.96 billion) last year, thus worrying the company's bankers.
The company made a net loss of Rs 4,858 crore (Rs 48.58 billion) in the year ended March this year while the total operating income was Rs 10,799 crore (Rs 107.99 billion) in the period, according to figures sourced from bankers and the ministry of corporate affairs.
Debt rose to Rs 23,491 crore (Rs 234.91 billion) for the fiscal ended March this year as against Rs 19,299 crore (Rs 192.99 billion) of the previous year and the company paid Rs 2,173 crore (Rs 21.73 billion) as interest to banks.
In fiscal 2012, its net loss was Rs 4,228 crore (Rs 42.28 billion) on a total operating income of Rs 10,002 crore (Rs 100.02 billion).
As of March this year, its contingent liabilities were Rs 3,377 crore as the company fought a number of court cases with the government and rivals.
Bankers say TTSL’s weak performance is due to increased competition in the wireless telephony industry and a fall in its CDMA-technology based revenues.
This, along with high finance costs, has contributed to the increased losses and increased the company’s financial risk, bankers say.
But its rival Idea Cellular made a profit of Rs 818 crore (Rs 8.18 billion) while Bharti made a profit of Rs 5,096 crore (Rs 50.96 billion)