RCom loss zooms to Rs 30,147 crore in Q2 on provisioning for liabilities

The telecom sector’s woes continued to deepen after the Anil Ambani-led Reliance Communications posted Rs 2,733 crore in pre-tax loss for the June-September quarter and Rs 30,147 crore in net loss for the same period, after accounting for adjusted gross revenue (AGR) provisions.

The company had reported Rs 338 crore in losses for the June quarter (Q1), and a profit of Rs 1,295 crore in Q2 last year. It reported Rs 305 crore in revenue, down from Rs 866 crore in Q1.

“(RCom) has provided for estimated liability aggregating to Rs 25,588 crore up to September 30, 2019, of Rs 21,420 crore towards License fee (Rs 3,892 crore, Rs 4,967 crore and Rs 12,561 crore towards principal, penalty, and interest on principal and penalty respectively) and Rs 4,168 crore towards Spectrum Usage Charges (Rs 936 crore, Rs 355 crore and Rs 2,877 crore towards principal, penalty and interest on principal and penalty respectively) as exceptional items that may undergo revision based on demands from DoT and/or any developments in this matter,” noted the firm in a statement to the exchanges.

RCom has not provided for interest of Rs 1,060 crore and Rs 2,040 crore for the quarter and half year ended September 30, respectively, and foreign exchange variation aggregating to Rs 374 crore of loss and Rs 347 crore of loss for the quarter and half year ended September 30, 2019, respectively.

Had it provided for interest and foreign exchange variation, the loss would have been higher by Rs 1,434 crore and Rs 2,387 crore for the quarter and half year ended September 30, 2019, respectively.

The firm is currently under insolvency proceedings at the National Company Law Tribunal.