New Delhi: State-owned telecom company Mahanagar Telephone Nigam Limited (MTNL) on Friday reported a narrowing of consolidated loss to Rs 653 crore in the June quarter. The company had posted a loss of Rs 688.69 crore in the same period a year ago.
The consolidated revenue from operations of MTNL fell by about 17 percent to Rs 250.72 crore in the first quarter of the current fiscal, according to a regulatory filing.
In the year-ago period, the same stood at Rs 301.15 crore.
In a note, auditors of MTNL said the company’s net worth has been fully eroded.
The note said the Department of Public Enterprises has declared the company as an incipient sick Central Public Sector Enterprise and the same has been confirmed by the Department of Telecom.
The consolidated financial result of the holding company has been prepared on a going concern basis keeping in view the majority stake of the government, the note said.
In July 2022, the Union Cabinet approved raising of sovereign guarantee bonds for MTNL for an amount of Rs 17,571 crore for the next two financial years.
(PSU Watch– India’s Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)