Sistema Shyam net loss at Rs 605 cr in December quarter

Sistema Shyam Teleservices has announced a net loss of Rs 605 crore during the fourth quarter ended December 2010. This is the first time that the unlisted entity – a joint venture company between Russia’s Sistema and India's Shyam group – has disclosed its financial numbers.

It had recorded a net loss of Rs 383.9 crore during the corresponding period last year, SSTL said in a statement. However, the consolidated revenues increased to Rs 193.7 crore during the October-December period, against Rs 66.3 crore in the same quarter last year, registering a growth of 192 per cent.

In December 2010, the Russian government had made an equity investment in SSTL of Rs 2,698.8 crore for a 17.14 per cent stake in the company's share capital. The company's consolidated debt towards banks and financial institutions stood at Rs 5,570.2 crore.

Sistema is the majority shareholder in the JV with 56.68 per cent stake. The Russian Federation has 17.14 per cent stake while the rest remains with the Shyam Group. For the year ended December 2010, the company had posted a net loss of Rs 2,168.6 crore, against Rs 1,256.5 crore in the year-ago period. However, revenues rose to Rs 523.9 crore for the year against Rs 176.1 crore in 2011.

The company’s total user base is 8.4 million and its data card subscriber base is 0.43 million. The capital investments in India stand at Rs 5,600 crore, including an investment of Rs 571 crore for 2010.