RCom says looking to refinance various payments till September
- Author: Zachary Reyes May 30, 2017,
May 30, 2017, 9:01
Meanwhile, The Economic Times on Monday reported that the company had delayed the repayment of loans to more than ten banks, which forced some banks to categorise it as a "special mention account" in their asset books.
The loss - after minority interest - widened to Rs 966 crore in the just-concluded quarter against Rs 531 crore in the December quarter, according to the statement.
It also blamed the competitive intensity brought on by Reliance Jio for the current state of the company, as well as the larger industry, and urged the government to take steps to relieve the burden on the industry. "Steep declines in profitability and/or net losses have been reported for the past two quarters by all telecom operators in the country without exception, and a couple of operators have shut down their entire operations in the country", the company said, blaming the entry of 4G operator Reliance Jio for hyper competition.
Some banks will have to treat the account as a non-performing asset (NPA) after a fortnight, another banker was quoted as saying. Rating agencies CARE and ICRA have already downgraded ratings of the company's bonds due to tis performance in recent times.
In an analyst call, Gurdeep Singh, Co-CEO of the telecom firm clarified that post signing of funding documents for Aircel and Brookfield management Rcom has formally advised all its lenders that it will be making payment and prepayment of Rs 25,000 crore from the proceeds of these two transactions on or before 30th September 2017.
The company said that it will close its ongoing process for merging its mobile business with Aircel and the sale of tower assets to Brookfield in the next four months.
Reliance Communications, controlled by billionaire Anil Ambani, said on Saturday it made a consolidated net loss of 9.66 billion rupees ($149.8 million) for its fiscal fourth quarter to March 31, compared with a 900 million rupees net profit in the same period a year earlier. The company cited free offers and disruptive pricing models as the key reasons behind a disappointing quarter. The loss for the 2016-2017 fiscal year stood at Rs 1,283 crore as against the net profit of Rs 660 crore in 2015-2016. Revenue per minute for the telco was Rs0.344 in the last quarter compared to Rs 0.399 in the trailing period.