Tata Teleservices shares hit 5% lower circuit after company reports wider Q3FY22 losses

Shares of Tata Teleservices (Maharashtra) Ltd (TTML) hit a lower circuit of 5 per cent to Rs 172.25 per share on the BSE during Wednesday’s session. Fall could be attributed to weak third quarter performance where the company’s October-December quarter loss widened. 

In Q3FY22, TTML reported a loss of around Rs 302 crore as compared to a loss of Rs 298 crore over the same period a year ago. This was despite its revenue from operations surging 2 per cent year-on-year (YoY) to Rs 284.2 crore. 

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In its filing to exchanges TTML said, “The company has incurred net loss for the quarter and nine months ended December 31, 2021, and current liabilities exceeded its current assets as of date.” 

“It has obtained a support letter from its Promoter indicating that the Promoter will take necessary actions to organize for any shortfall in liquidity during the period of 12 months from the balance sheet date,” the Tata Group telecom company said further. 

The company is confident of its ability to meet the funds requirement and to continue its business as a going concern and accordingly, the financial results have been prepared on that basis, it added. 

Earlier, the company reversed its decision to not opt for conversion of interest related to AGR dues into equity, as the interest amount eligible for such conversion is quite lesser than the calculations. 

The stock in the last five sessions have surged almost 10 per cent, however. The trends have reversed over the last one month by around 38 per cent and the stock has been underperforming the Sensex which has been down by over 3 per cent during same period.