GTL Limited Reports Quarterly Profit of ₹1,560 Crore Amid Financial Challenges

GTL Limited , a network services provider, has announced its unaudited financial results for the quarter ended June 30, revealing a significant increase in revenue and profit despite ongoing financial challenges.

Financial Highlights

• Revenue from operations surged to ₹6,990.00 crore, up from ₹5,573.00 crore in the same quarter last year.
• Net profit reached ₹1,560.00 crore, compared to ₹1,289.00 crore in the previous year's quarter.
• Earnings per share (EPS) stood at ₹0.99 after exceptional items.

Key Financial Data

Exceptional Items and Financial Challenges

The company recorded exceptional items of ₹1,129.00 crore, representing one-time revenue. However, GTL's financial position remains precarious:

• The company did not pay or provide interest on borrowings during the quarter.
• If interest had been recognized, GTL would have reported a loss of ₹7,738.00 crore with a negative EPS of ₹4.93.
• The company's net worth remains eroded, with current liabilities exceeding current assets.

Debt Resolution Progress

GTL has made progress in settling its debts:

• Dues have been settled with ten secured lenders, including Canara Bank.
• Canara Bank has filed for withdrawal of proceedings before the National Company Law Tribunal (NCLT) Mumbai.
• The company has entered into an Upside Sharing Agreement with eligible lenders to share 75% of the net recovery amount from ongoing arbitration proceedings.

Management Outlook

Despite the financial challenges, GTL's management maintains a positive outlook:

• The company continues to operate on a going concern basis.
• Management is awaiting the outcome of arbitration proceedings and One-Time Settlement (OTS) sanctions from the remaining lenders.
• Efforts are being made to resolve issues before the Debt Recovery Tribunal (DRT).

Leadership Changes

In a separate announcement, GTL Limited informed that:

• Mr. Harshad Kulkarni has been appointed as the new Chief Financial Officer (CFO) and Key Managerial Personnel, effective August 7.
• Mr. Kulkarni, aged 52, is a Chartered Accountant and Cost Accountant with over 28 years of experience in financial accounting, budgeting, taxes, and internal audit.
• He replaces Mr. Milind Bapat, who is retiring from the CFO position.

GTL Limited's financial results reflect a complex situation where the company has managed to increase its revenue and report a profit, largely due to exceptional items. However, the underlying financial challenges, including unpaid interest and eroded net worth, continue to cast doubt on the company's long-term sustainability. The management's efforts to resolve debt issues and the appointment of a new CFO signal ongoing attempts to navigate these challenges and steer the company towards financial stability.