MTNL Q2 Results | State-owned telecom company reports net loss of ₹890 crore
In the second quarter, total revenue stood at ₹174.2 crore during the period under review, down 5.3% against ₹183.9 crore in the corresponding period.
At the operating level, EBITDA loss stood at ₹119.3 crore in the second quarter of this fiscal over a loss of ₹110.9 crore in the preceding June quarter. EBITDA is earnings before interest, tax, depreciation, and amortisation.
In October this year, sources privy to the matter told CNBC-TV18 that MTNL will not be allowed to shut shop and an option to take it to the National Company Law Tribunal (NCLT) has been ruled out.
Also Read: Lemon Tree Hotels Q2 Results | Net profit surges 33% to ₹35 crore, revenue rises 24% to ₹284 crore
The sources said that MTNL going to the NCLT will not set the right precedent for PSU stocks and the plan for the moment is to keep MTNL as a “going concern.”
On a long-term basis, fund infusion of nearly ₹8,000 crore may be needed for MTNL to continue with the same. A committee of Secretaries is examining the matter and a revival plan may also be worked out for the debt-ridden, cash-strapped company, according to the sources.
MTNL has defaulted on bank loans recently with total debt currently standing at ₹31,944.51 crore. The government is also not in favour of a haircut for lenders on MTNL’s exposure, sources said. India’s largest lender, State Bank of India (SBI) had downgraded MTNL’s account as a Non-Performing Asset (NPA).
Also Read: SOBHA Q2 Results | Realty firm sees 73% surge in net profit, 26% revenue rise
CNBC-TV18 had previously reported that banks, including SBI, were set to downgrade the MTNL account in the September quarter. As of September 30, 2024, SBI’s total outstanding exposure to MTNL stood at ₹325.52 crore, with ₹281.62 crore overdue. SBI has demanded immediate payment to regularize the account.
The results came after the close of the market hours. Shares of Mahanagar Telephone Nigam Ltd ended at ₹44.32, up by ₹0.30, or 0.68% on the BSE.
