As the September quarter earnings season is nearing its close, two hefty losses by telecom major Bharti Airtel and Vodafone Idea wrecked the profit metric of India Inc, resulting in another major miss on the corporate earnings.ETMarkets.com compiled seven worst such quarterly numbers that Indian companies reported in recent times.
Vodafone Idea | September quarter 2019 | Rs 50,922 crore
Telecom major Vodafone Idea dethroned Tata Motors to post largest ever loss by an Indian company. The firm reported a loss of Rs 50,922 crore for the quarter ended September 30, as it made a provision for Supreme Court’s ruling on payment of average gross revenue (AGR) dues.
Consequent to the recent judgement by Supreme Court, the company said it has accounted for the estimated liability of Rs 27,610 crore related to license fee and Rs 16,540 crore related to spectrum usage charges up to September 30including the interest, penalty and interest thereon of Rs 33,010 crore.
Tata Motors | December quarter, 2018 | Rs 26,961 crore loss
Tata Motors announced a non-cash exceptional charge to cut the book value of capitalised investments. The company said it had to take the accounting adjustment as part of ‘charge’ and Accelerate ‘transformation’ programmes to enable Jaguar Land Rover to counter the multiple economic, geopolitical, technological and regulatory headwinds impacting the automotive industry currently. Analysts have cut Tata Motors’ earnings estimate by up to 35 per cent post results.
Bharti Airtel | September quarter, 2019 | Rs 23,044 crore loss
Bharti Airtel on Thursday reported its biggest quarterly losses at Rs 23,044 crore for the quarter ended September 30, affected by Rs 28,450 crore provisions towards adjusted gross revenue (AGR) dues. The AGR provision amount includes principal amount of Rs 6,164 crore, interest Rs 12,219 crore, penalty Rs 3,760 crore and interest on penalty Rs 6,307 crore.
The company said it will require significant additional financing to discharge its obligations under the Supreme Court Judgement. Airtel added that there can be no assurance of the success of management's plans to raise funds in a timely manner.
IOC | June quarter, 2012 | Rs 22,451 crore loss
Before Tata Motors, the record of worst quarterly profit was held by Indian Oil Corporation for over six years. The oil refiner in August 2012 reported worst quarterly loss ever of Rs 22, 451 crore for June quarter of 2012 (Q1FY13) despite low crude prices. The state-run company suffered a foreign exchange loss of Rs 3,187 crore and an inventory loss of Rs 4,062 crore. The freeze on diesel, kerosene and cooking gas prices, depreciation of the rupee and interest costs also hurt the PSU. For the quarter, the refiner had to incur Rs 1,849 crore in tax burden due to a delay in government compensation.
Vedanta | March quarter, 2016 | Rs 21,104 crore loss
The company reported Rs 21,104 crore loss for the March quarter of 2016. Till December 2016, the company was issuing unaudited financial results. But later, after the finalisation of policies and exemptions, it restated the results for previous quarters in accordance with the measurement principles of IND-AS. The Rs 21,104 crore loss was reflected under the new accounting standard. The numbers were influenced by Rs 33,645 crore worth of exceptional items that primarily included impairment in oil & gas business.
Vedanta | March quarter, 2015 | Rs 18,718 crore loss
The company reported a massive loss led by exceptional items worth Rs 19,956 crore. These items included Rs 19,180 crore of impairment charge relating to goodwill created on acquisition of Cairn India. The impairment, the company said, was triggered by a steep fall in crude oil prices, leading to a downward revision of the carrying values on the books. Sri Lankan exploratory assets in the oil & gas segment was also impaired by Rs 505 crore due to commercial non-viability of the discovery. Besides, the company had also impaired Rs 281 crore on account of acquisition goodwill related to Copper Mines of Tasmania, Australia.
Punjab National Bank | March quarter, 2018 | Rs 13,417 cr loss
Provisions and contingencies worth Rs 20,353.10 crore for the quarter dragged the state-run bank into losses, thanks to what was dubbed as the biggest fraud in India's banking history. PNB last February said two jeweller groups led by Nirav Modi and Mehul Choksi had defrauded the bank, raising credit overseas using fake guarantees issued by rogue . PNB staff at a Mumbai branch over several years.