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Tata Teleservices plummeted 15 percent intraday on Tuesday as investors turned wary on Tata Sons Chairman N Chandrasekaran’s comments on the plight of the company.
In an interview to CNBC-TV18, Chandrasekaran said that the company was in a really bad shape on the back of huge debt and monthly cash losses. He further emphasized that a call would be taken about the business in this financial year itself.
Further, he added that a turnaround of Tata Teleservices was an extremely difficult task and that he is committed to finding a solution "one way or the other" very quickly.
The Tata Sons honcho did not directly answer whether the group would close down the business but said that a "tough call" will have to be taken on Tata Teleservices, an issue that tops his priority at present.
"Tata Teleservices...is in a really bad shape. They have a huge debt. The footprint we have and the spectrum we have is very difficult...close to impossible for us to recover. So that is a company we are going to find a solution very quickly," he said.
He added that Tata Teleservices was burdened by Rs 31,000 crore debt in addition to spectrum liability and was incurring cash losses on a month-on-month basis.
In the past one month, the stock fell 37 percent, while its three-day loss stood at 29 percent. At 13:50 hrs Tata Teleservices (Maharashtra) was quoting at Rs 4.29, down Rs 0.71, or 14.20 percent, on the BSE. It touched a 52-week low of Rs 4.25.
(With inputs from PTI)
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