- Voda Idea & Airtel post Rs 74,000 crore loss in Q2 on AGR provisioning
- Vodafone Idea posts India’s biggest ever quarterly loss at Rs 50,921 crore on AGR hit
- Airtel reports Rs 23,045 cr Q2 loss on Rs 28,450 cr provisions towards AGR dues
- Airtel flags ‘going concern’ risk after big Q2 loss; key takeaways
The company, which is going through insolvency process, had made a profit of Rs 1,141 crore in the corresponding three months a year ago.
During July-September 2019, the company set aside Rs 28,314 crore on account of provisioning following the Supreme Court order on calculation of annual adjusted gross revenue (AGR) of telecom companies.
The apex court last month upheld the government's position on including revenue from non-telecommunication businesses in calculating the annual AGR, a share of which has to be paid as licence and spectrum fee to the exchequer.
Total liability on telecom operators after the SC ruling is estimated to be around Rs 1.6 lakh crore, of which Rs 1.33 lakh crore due has to be paid by the companies that are operational.
7 worst ever quarterly losses in India Inc's history
As the September quarter earnings season is nearing its close, two hefty losses by telecom major Bharti Airtel and Vodafone Idea wrecked the profit metric of India Inc, resulting in another major miss on the corporate earnings.
ETMarkets.com compiled seven worst such quarterly numbers that Indian companies reported in recent times.
RCom and its subsidiaries did not provide interest of Rs 1,210 crore and foreign exchange variation of Rs 458 crore.
"Had the company provided interest and foreign exchange variation, the loss would have been higher by Rs 1,668 crore...for the quarter," RCom said.
Revenue from operations of RCom dipped to Rs 302 crore during the reported quarter from Rs 977 crore it recorded in the corresponding period of 2018-19.
RCom shares closed at Rs 0.59 apiece, down by 3.28 per cent compared to previous close, at BSE.
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23 Comments on this Story
Krishna Kumar312 days ago
Now the money has to be paid to the Govt, as per S C orders, all tele com coys have incurred losses. What a coincidence? R Com"s service was poor and they never returned money which subscriber deposited with them. Their business had to suffer. YOU CAN NOT FOOL EVERYONE AND FOREVER.
Subbu India312 days ago
Make a policy so that you do not loose and the others also do not loose.
Jagdip Vaishnav312 days ago
Shree Anil Ambani''s all companies like Rcom, Reliance Power, Reliance Capital , Reliance gen insurance are facing crisis. Finally investors suffer