MTNL Q2 loss widens to Rs 859 crore

State-run telecom firm MTNL Wednesday reported widening of its loss to Rs 859 crore on standalone basis in the quarter ended September 30, 2018, mainly on account of increase in finance cost and decline in sales. The debt-ridden firm had posted a loss of Rs 730.64 crore in the same period a year ago.

The finance cost of the company during the period under review increased to Rs 422.72 crore from Rs 366.22 crore.

MTNL has debt of around Rs 19,000 crore.

The total income of the company declined by about 21 per cent to Rs 621.26 crore in the reported quarter from Rs 791.1 crore in July-September 2017 quarter.

MTNL’s revenue from operations declined by about one-third to Rs 444.12 crore during the second quarter from Rs 642.23 crore in the corresponding quarter of 2017-18.

The employee cost accounted for 92.2 per cent of total income of the company and around 29 per cent more than its revenue from operations at Rs 572.83 crore.

The auditors of MTNL in a note said that the net worth of the company has been fully eroded.