Apart from Jio price war,
rising losses, increase in interest payments are other reasons
RELIANCE
JIO - The woes
of Tata Teleservices continue to mount with its net worth eroding by Rs 11,653
crore at the end of the financial year ended March 2017, on rising losses and
interest payments.
The company announced a loss of Rs 4,617 crore for FY17,
compared to a loss of Rs 2,023 crore in FY16. This is a bad news for its
promoter, Tata Sons, which will have to keep investing in the company’s equity
so that it can meet its liabilities, bankers said. But, the company’s debt
stood reduced almost five per cent from Rs 30,192 crore in FY16 to Rs 28,766
crore in FY17.
Because of the price war in telecom spurred by the entry of
Reliance Jio, the Tata group company’s turnover declined to Rs 9,419 crore in
FY17 from Rs 10,588 crore in FY16.
The Tata group company is not the only one which struggled
during the year. Aditya Birla Group’s Idea Cellular also reported losses of Rs
400 crore, compared to a profit of Rs 2,728 crore in FY16. Sales and profits of
the top two players, Bharti Airtel and Vodafone, also declined during the year.
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