Ortel’s QoQ net loss widens to Rs 17.62 cr in Q2
MUMBAI: Multi system operator (MSO) Ortel Communications has widened net loss to Rs 17.62 crore for the quarter ended 30 September compared to Rs 13.48 crore in the trailing quarter ended 30 June.
The company’s revenue from operations remained flat at Rs 31.56 crore compared to Rs 31.34 crore a quarter ago. Total expenses jumped to Rs 49.9 crore from Rs 46.1 crore.
The company’s operating profit from the cable TV segment decreased to Rs 6 crore from Rs 9.09 crore. The revenue increased to Rs 25.6 crore from Rs 23.8 crore.
The operating profit from the broadband segment more than halved to Rs 31.79 lakh from Rs 79.21 lakh. Revenue fell to Rs 3.3 crore from Rs 4.2 crore.
In the footnote of the balance sheet, Ortel said that its net worth has eroded fully due to consistent losses. It has incurred a net loss of Rs. 31.10 crore for the first half of FY19.
It further stated that there is a persistent severe strain on the working capital and operations of the company and it is undergoing significant financial stress due to low margin, fall in customer base and high interest cost.
The company is undergoing Corporate Insolvency Resolution Process (CIRP) based on the application filed by Sony Pictures Networks India. The National Company Law Tribunal, New Delhi Bench had passed an Order dated 27th November for the commencement of the CIRP.
Anil Bhatia has been appointed as Interim Resolution Professional (IRP) to carry on the functions of an IRP, as defined under the provisions of the IBC.
In FY18, the company had made provision for doubtful receivables amounting to Rs. 30.63 crore in respect of both retail and non-retail customers. Thereafter, the company identified customers who had suffered disruption of services/deficient provision of services during the period 1st July 2017 to 30th April 2018 and during the quarter ended 30th September.
The company issued Credit Notes amounting to Rs. 14.19 crore to such customers. Accordingly, the company has debited ‘Provision for doubtful receivables’ with Rs. 14.19 crore and the related Goods and Services Tax (GST) liability with Rs. 2.55 crore and credited ‘Trade Receivables’ with Rs. 16.75 crore.