State run MTNL has posted a huge net loss of Rs 817 crore for the third quarter ending December 31, taking over its declining revenues which stood at Rs 690 crore, hit hard by finance costs. The PSU operates in Delhi and Mumbai.
It shows sequentially also the loss increased from Rs 768 crore in Q2 to Rs 817 crore in Q3 while the revenue fell from Rs 729 crore in Q2 to Rs 690 crore in the third quarter, the PSU’s filing to the stock exchanges stated.
There is a gradual increase of the finance cost throughout the three quarters of the current fiscal which now stand at Rs 382 crore from Rs 359 crore in Q2. For the Nine-month period the company has a loss of Rs 2306 crore.
Telecom minister Manoj Sinha had earlier told Parliament that said that PSU is struggling with huge debt of about Rs 20,500 crore. The PSU is on a borrowing spree for daily operations.
Finance Cost or borrowing costs are the “interest and other costs that an entity incurs in connection with the borrowing of funds”. It share was down 4.94% at Rs 22.15 on NSE.