Tata Teleservices share price plunges as Q1 losses narrow, stock down near 11% in 2 sessions

The shares of Tata Teleservices (Maharashtra) Limited (TTML) on Wednesday were locked in a lower circuit of 5 per cent to Rs 38.8 per share on the BSE intraday trade as the June-ended losses narrow.

The telecom operator on Tuesday reported a loss of Rs 318.45 crore in the first quarter of the financial year 2021-22, as compared to a loss of Rs 1,069.26 crore in the same period a year ago.

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However, TTML’s revenue from operations jumped by over 10 per cent to Rs 268.03 crore during the quarter, as against Rs 243.3 crore in the year-ago quarter.

The company in its filing to exchanges said that the company has obtained a support letter from its promoter, indicating that the promoter will take necessary actions to organise for any shortfall in liquidity during 12 months from the balance sheet date.

"Hence, TTML is confident of its ability to meet the funds' requirement actions to organise for any shortfall in liquidity during the period of 12 months from the balance sheet date,” the company said.

The stock has been volatile for the last five sessions, and it has declined by around 11 per cent in the last two sessions. It had hit a 52-week high of Rs 55.1 per share on July 06, 2021. 

In Q1, the company made provision towards licence fee and the spectrum usage charge of Rs 766.77 crore for the quarter ended June 30, 2020, and Rs 779.81 crore for the year ended March 31, 2021.

The company also said that the impact of the Covid-19 pandemic continues to be felt across the economy and business segments and it will continue to monitor any material changes to future economic conditions which may have any bearing on the company’s operations.