SSTL clocks net loss of Rs 760 cr in Q3

Telecom operator Sistema Shyam Teleservices (SSTL), which operates under MTS brand, has posted a net loss of Rs 760 crore for the third quarter ended September 30, 2013, due to forex losses and business restructuring.

The company had reported a net loss of Rs 495.5 crore for the same period a year ago.

The revenues of SSTL also declined by about 30% to Rs 284.4 crore during the reported quarter as compared to Rs 404 crore in the same period a year ago.

Revenues declined mainly because of closure of circles.

SSTL has demanded putting CDMA airwaves for auction at reduced price linked to 2G spectrum rates for which TRAI has recommended about 37% lower base price.

"On the regulatory front, though 100% FDI in telecom is a welcome move, we expect the government to provide a clear roadmap for the auction of 800 Mhz spectrum. This is a must for proliferation of data services and also for restoring investor confidence," said Dmitry Shukov, SSTL's Chief Executive Officer.

The company has a target to turn Operating Income before Depreciation and Amortization (OIBDA) positive by end of 2014.

OIBDA loss of the company during the quarter was at Rs 219.7 crore as against Rs 354.1 crore in the year-ago period.

During the quarter, SSTL made investments of Rs 40.4 crore. Debt from banks and financial institutions at the end of September stood at Rs 3,897 crore.

"In Q3 2013, operating parameters like ARPU (average revenue per user), Minutes of Usage (MoU) continued to improve. Going forward, with the launch of our 3G Plus network, we expect the Company to come back to its high growth path," said Sergey Savchenko,SSTL Chief Financial Officer .