SSTL Reports Narrowing of Net Loss in Q3 to Rs. 437.9 Crores

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SSTL Reports Narrowing of Net Loss in Q3 to Rs. 437.9 Crores
Telecom operator Sistema Shyam TeleServices (SSTL), which operates under MTS brand name, reported narrowing of its net loss at Rs. 437.9 crores in the three-month period ended September 30, helped by reduction in foreign exchange loss.

The company had reported a net loss of Rs. 760.1 crores in the same period a year ago.

The revenue of the company increased by 20 percent to Rs 342.7 crores during the reported period as compared to Rs. 284.4 crores in the third quarter of 2013.

"During the quarter, our non-voice revenues grew by 14 percent, thereby contributing 43 percent of the total revenues. Our net income improved by 42 percent mainly on account of significant reduction in forex loss," SSTL Chief Executive Officer Dmitry Shukov said here.

The company reported a foreign exchange loss of Rs. 60.7 crores in the quarter as compared to Rs. 206.8 crores in the corresponding period in 2013.

The company saw an increase of 14 percent in non-voice revenue that includes mobile internet and other value added services at Rs. 147.5 crores.

"Success of SSTL's data strategy is evident with non-voice revenues contributing 43 percent of total quarterly revenues, highest in the industry. To further strengthen the data story in India, it is imperative that the government comes out with a clear roadmap on spectrum sharing and trading," Shukov said.

He said that the company is unable to make its future investment plans due to lack of clarity on CDMA spectrum auction.

SSTL's data card subscriber base increased by 6.3 percent to 15 lakh during the quarter.

The company's operating income before depreciation and amortisation - an indicator of cash flow, loss - reduced by 53 percent year-on-year at Rs. 103.7 crores from Rs. 219.7 crores reported in third quarter of the previous fiscal.

"Non voice revenue growth along with cost control has helped OIBDA margins to improve further during the quarter.

The go forward plan includes, continuing with investments in operations to drive maximum value from our 3G Plus network," SSTL acting Chief Financial Officer Vinay Mittal said.

SSTL's mobile subscriber base during the reported period remained flat quarter-on-quarter basis and reached 92 lakh.

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Further reading: MTS, SSTL, Spectrum Auction, Telecom
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