The shares of a telecom service provider hit a 5% lower circuit after being officially classified as a Non-Performing Asset (NPA) by the State Bank of India against a term loan of Rs. 325.52 crores.
Share price variations:
With a market capitalization of Rs. 3,281.67 crores, Mahanagar Telephone Nigam Limited (MTNL) hit the 5% lower circuit, with its stock price falling to Rs. 52.09 from the previous close of Rs. 54.84 per share.
Reason for the Fall:
As per the exchange filing Mahanagar Telephone Nigam Limited has been officially classified as a Non-Performing Asset (NPA) by the State Bank of India due to due to non-payment of interest and installment against the Term Loan. As of 30.09.202, the total outstanding amount stands at Rs. 325.52 crores.
Recent Updates:
In September Mahanagar Telephone Nigam Limited entered into a Memorandum of Understanding with NBCC (India) to develop a prominent Land Parcel of MTNL measuring approximately 13.88 acres located on Pankha Road-l Janakpuri, New Delhi.
Financial Performance:
For Q1FY25 the company reported a net loss of Rs. 773 crores compared to Rs. 852 crores in Q1FY24, while revenue from operations also marked a decrease to Rs. 184 crores from Rs. 199 crores in comparison to the same period. The company has remained as a loss-making firm since 2015.
About the company:
Mahanagar Telephone Nigam Limited (MTNL) was set up on 1st April of the year 1986 by the Government of India to upgrade the quality of telecom services, expand the telecom network, introduce new services, and raise revenue for the telecom development needs of India’s key metros, Delhi and Mumbai. The Company provides various types of telecommunication services including Telephone, telex, wireless, data communication, telematic, and other forms of communication.
Written By– Joseph Pv
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