GTL Infra in its press release has mentioned that, as of September 2017, it had a total tenancy base of 51,454. The company expects a further loss of 9,000 to 11,000 tenancies on account of the consolidation in the telecom sector over the next 12-18 months, which was beyond management control.
However, the company believes that there will be an addition of 10,000 tenancies during the similar period, hence offsetting the losses in tenancies.
The company further adds that it has an estimated outstanding claims of over Rs2,000cr, which on receipt will be utilized to reduce debt. The company is also taking significant cost optimisation measures to counter the impact of tenancy loss. The company expects to save around Rs120-300cr annually in relation to the discontinued tenancies.
Post the consolidation in the telecom sector, the company believes that it could add close to 5,000 tenancies in FY18E and another 5,000 in FY19E.
Thus taking the total tenancy estimate to 47,000 in FY18E and 52,000 in FY19E.
Following the strategic debt restructuring, the company brought down its secured debt to Rs4,193cr as of April 13, 2017. The debt component related to optionally convertible FCCBs was reduced to Rs560cr from Rs1,442cr.
According to media reports, lenders to Aircel and GTL Infrastructure have come up with a solution to clear the combined debt of the firms. They are looking at the option to merge the firms so that the new entity gets a stable earning. The lenders are looking at March 31, 2018, as the deadline to initiate the merger.
GTL Infrastructure Ltd is currently trading at Rs7.68, up by Rs0.66 or 9.4% from its previous closing of Rs7.02 on the BSE.
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