MTNL Q2 Results, PSU telecom reports net loss of Rs 890 crore

Debt-loaded state-owned telecom firm MTNL Ltd has reported a net loss of Rs 890.3 crore for the second quarter that ended September 30, 2023.

The company recorded a net loss of Rs 773.5 crore in the April-June quarter. In the second quarter, total revenue stood at Rs 174.2 crore during the period under review, down 5.3% against Rs 183.9 crore in the corresponding period.

At the operating level, EBITDA loss stood at Rs 119.3 crore in the second quarter of this fiscal over a loss of Rs 110.9 crore in the preceding June quarter. EBITDA is earnings before interest, tax, depreciation, and amortization. On a long-term basis, a fund infusion of nearly Rs 8,000 crore may be needed for MTNL to continue with the same.

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As of September 30, 2024, SBI’s total outstanding exposure to MTNL stood at Rs 325.52 crore, with Rs 281.62 crore overdue. SBI has demanded immediate payment to regularize the account.

A committee of secretaries is reviewing the situation and may develop a revival plan for the debt-ridden MTNL, which has defaulted on bank loans totaling Rs 31,944.51 crore.

The government opposes a haircut for lenders on MTNL's exposure, and the State Bank of India (SBI) has classified MTNL's account as a Non-Performing Asset (NPA).

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