RCom, controlled by billionaire Anil Ambani, has won a reprieve on its debt until the end of the year as it works on two asset sale deals that it expects will reduce its $7 billion debt by about 60 percent.
On Saturday, it reported a net loss of Rs 1,221 crore ($190.38 million) for its fiscal first quarter ended June, against a profit of Rs 54 crore a year earlier.
Revenue from operations fell 33.6 percent year-on-year to Rs 3,494 crore, while finance costs rose to Rs 998 crore.
The company's continued losses are, in part, a result of competition from free voice and cut-price data plans offered by Reliance Jio Infocomm, the telecom startup backed by Ambani's elder brother Mukesh.
Jio has upended India's uber-competitive telecom sector, forcing all incumbents to drop prices despite falling margins and profits.
But RCom's struggle with its debt load and little success with its initial bet on a network based on CDMA technology have also led to its current financial situation.
The company has previously said it expected the transactions to close by September.
Worries over the company's ability to repay debt have led to a series of downgrades by ratings agencies and the company's stock has plummeted 39 percent so far this year compared with an 18 percent rise of a broader Mumbai market.
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