SSTL reports quarterly loss of Rs.657.6 crore

NEW DELHI, INDIA: Sistema Shyam TeleServices Limited (SSTL), operating its telecom services under the MTS brand in India, Wednesday reported a net loss of Rs.657.6 crore (over $140 million) for the quarter ended June 30.

The company posted a net loss of Rs.661.3 crore during the same period of the previous financial year, SSTL said in a statement.

The revenue of the company, however, rose to Rs.278.2 crore during the quarter under review as compared to Rs.105.5 crore during the same period an year ago.

Its mobile subscriber base increased by 17 percent quarter-on-quarter and reached 11.7 million as of June 30. India has over 850 million subscribers.

"In spite of the continued challenges faced by the telecom industry in India, SSTL is on track to successfully execute its data centric -- voice enabled strategy. We have received an extremely favourable response from the market to our strategy," said Vsevolod Rozanov, president and chief executive officer, SSTL.

According to the company, the growth in the subscriber base of the company was largely driven by strengthening of the distribution network, an increase in its retail universe across India and contribution by newly-launched circles.

The capital expenditure investments made by SSTL in India at the end of the quarter ended June 30 stood at Rs.6,080 crore.

Consolidated debt from banks and financial institutions at the end of the period stood at Rs.5,736.7 crore.