MTNL sees steep fall in operating profits

Posted on | September 21, 2006 |

ET reports that MTNL’s operating profit for the year ‘05-06 (Rs 166 crore) has become a fifth of the operating profit in ‘04-05 (Rs 760 crore). The PSU had registered a net profit of Rs 580 crore for FY05-06, as compared with Rs 938 crore in the previous fiscal.

• The profits of MTNL are being sustained only through other income. Other income went up to Rs 530 crore due to interest on refund of income tax deposited in the previous years, as against Rs 491 crore in ‘04-05.
• However, it more than doubled the cellular subscribers. Revenues from GSM services went up from Rs 287 crore to Rs 561 crore.
• Income from core telecom services fell by Rs 22 crore to Rs 5,560 crore in ‘05-06.
• The growth in respect to braodband subscribers is still sluggish. Broadband subscribers increased to 211,935 during FY05-06.
• Fixed line subscriber base fell to 3,821,252, as against 4,015,173 during
  Category: Markets
  

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