Sistema Shyam Teleservices' expansion plans on hold as company reports Rs 1, 180 crore loss

NEW DELHI: Sistema Shyam Teleservices ( SSTL) has no plans to expand its business in India at present as its losses widened by 79% to Rs 1,180 crore in the second quarter ended June over Rs 657.6 crore the same time last year.

The telco is focusing on limiting cash outflows to maintenance work only before deciding appropriate steps for participating in the upcoming spectrum auctions. "There is no reason to do further investment. Since there is no certainty (from the government), cash preservation has become important. We're focusing on retention of customers and doing activities to minimise costs," SSTL president and chief executive officer Vsevolod Rozanov said on Monday.

The telco's net income reduced 124% in April-June this year from 527.8 crore in the first quarter that it attributed to "adverse movement in exchange rate resulting in recording of forex losses with respect to long term foreign currency denominated loans, as the rupee depreciated considerably against the dollar during the quarter."

SSTL's revenues rose by 50% to Rs 417.7 crore from Rs 278.2 crore in the same quarter last year. However, its accumulated loss till end of June aggregated to Rs 9,606 crore while consolidated debt from stood at Rs 9,296 crore.