The Telecom Regulatory Authority of India (TRAI) has released the findings of a study conducted on various private operators? shareholding and financial pattern and capital structure.
The regulator has said that the ability of Bharti Airtel, Vodafone India, Reliance Communications (RCOM) and Idea Cellular to pay interest on their debts declined in 2011-12, compared to 2007-08, while Tata Teleservices Limited (TTSL) remained in the negative.
Meanwhile, the total debt of the aforementioned companies was over Rs 1.70 trillion, of which Rs 400.45 billion was foreign currency loans taken in 2011-12. The quantum of foreign currency loans increased from Rs 139.29 billion in 2007-08 to Rs 400.45 billion in 2011-12.
As on March 31, 2012, the regulator has stated that Vodafone India had the highest debt of Rs 453.32 billion, followed by RCOM at Rs 311.95 billion and TSL at Rs 239.86 billion.
Also, the study revealed that leading telecom operators reported losses of Rs 59.45 billion before finance charges and taxes. The finance charges – including impact of currency fluctuation – stood at Rs 174.33 billion.
With regard to the interest coverage ratio, the study stated that this parameter decreased for all companies, except TTSL, between 2007-08 and 2011-12.
