BSNL records six-fold jump in operating profits at Rs 3,855 cr in FY16

BHARAT Sanchar Nigam Ltd (BSNL) has reported nearly six-fold jump in operating profit during 2015-16 at Rs 3,855 crore from Rs 672 crore in the previous fiscal year. The revenue from operation turned out to be highest in the last five years. BSNL's revenue from operation rose 4.4 percent to Rs 28,449 crore during financial year ended March 2016, PTI reported...
quoting official sources. The news agency cited latest audited financial statement of BSNL placed at the AGM last week.
The telecom PSU saw an acceleration in the mobility business during 2015-16 when 25,000 towers were installed, which led to strong addition of customers and higher revenue from the mobile segment.
While the enterprise segment grew 28 percent, the landline segment, including fixed line and broadband grew by about 2 percent, and mobile segment grew by 8 percent.
The growth in income and ability to contain expenditure in salary, administrative, employee remuneration and other benefits, helped in growing Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) to Rs 3,855 crore in 2015-16 from Rs 672 crore in 2014-15. Total income (which included interest on refund of spectrum as part of other income) stood at Rs 32,918 crore during 2015-16, up nearly 15 percent, over the previous year, while losses nearly halved to Rs 3,879 crore in 2015-16 (from Rs 8,234 crore).
The total revenue as also revenue from operation were the highest recorded by the corporation since 2009-10, pointing towards revival of the beleaguered telecom operator.
The total expenditure of the corporation reduced by 1.3 percent over the previous year.
The employee remuneration as percentage of the operating revenue was pegged at 54.08 percent in FY16 as against 54.3 percent for the previous year.
In a related development, BSNL has decided to waive charges on short code messages used for availing banking services on feature phones till January 31, 2017.
"To give impetus to the demonetisation drive by Government of India and to facilitate masses to do cashless financial transactions even with feature phone, BSNL has decided to waive the tariff of National Unified USSD platform till 31st January, 2017," the telecom PSU said in a statement.
BSNL had signed an agreement with National Payment Corporation of India (NPCI) for provision of USSD-based Mobile Banking service.