Spice Mobility sinks into Rs 223Cr net loss in Q2 due to impairment of goodwill in handset retail business

Spice Mobility Ltd (formerly S Mobility) has reported a net loss of Rs 223 crore during the second quarter ended December 31, 2014 compared to net profit of Rs 1 crore during the year-ago period.

This was due to mounting losses in the handset retail business, the company said. It booked an exceptional item of Rs 194.8 crore due to impairment of goodwill in the aforesaid business.

Sequentially also its net loss widened. It had reported a net loss of Rs 13.32 crore during the quarter ended September 30, 2014.

The consolidated revenue of the company rose marginally to Rs 569 crore during the period under review against Rs 567.5 crore during Q2 FY14 and Rs 544 crore in Q1 FY15.

Segment wise, for the mobile division, it reported a revenue of Rs 524.4 crore during quarter ended December 31, 2014 against Rs 517 crore in the year ago period.

For services, the revenue declined to Rs 47.2 crore during the quarter under review against Rs 52 crore during the like period of the previous financial year.

The company follows a July-June financial year.

Spice Mobility, a part of B K Modi Group, has changed its name twice reverting to its previous name recently. It has been trying to position itself as a mobile internet firm but it still derives a large chunk of its revenues from its economy end handsets business.

Recently the promoter group said that it was looking to delist the firm.