Reliance Communications Ltd. reported a loss as the debt-ridden company awaits the government’s approval for the sale of its towers and spectrum.
Anil Ambani-led company posted a consolidated loss of Rs 341 crore in the third quarter ended December, according to an exchange filing. The company had registered a loss of Rs 206 crore in the same quarter last year.
The loss figure excludes interest and foreign exchange impact. The Anil Ambani-led firm, which is going through debt resolution process under Insolvency and Bankruptcy Code, did not provide for interest of Rs 1,091 crore and foreign exchange variation and other related item amounting to Rs 474 crore for the quarter.
“Had the company provided interest and foreign exchange variance, the loss would have been higher by Rs 617 crore... for the quarter,” the company filing said.
The auditors have drawn qualification for non providing for interest and foreign exchange variations in their Limited Review Report for the quarter and nine months ended December.
RCom also derecognised assets and liabilities pertaining to Reliance Realty Ltd. and investment by the company in real estate firm. Therefore, its financial performance during the third quarter and nine months ended December could not be compared with that of the previous period, it said.
Trouble is also brewing for RCom's overseas subsidiary GCX as its current liability exceeds assets by $324 million. GCX has to repay a bond amounting to $350 million in the month of August 2019.
RCom’s revenue for its continuing business for the reported quarter was down at Rs 1,083 crore from Rs 1,176 crore a year earlier. However, it improved from Rs 1,014 crore in July-September.
Shares of RCom closed 3 percent lower on the BSE on Wednesday.
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