The losses stood at Rs 703.1 crore in the corresponding period of 2017-18, according to MTNL’s regulatory filing. A household telephony brand in the 90s and early 2000, MTNL’s revenue and profitability have come under tremendous pressure with intensified competition in mobile and landline telephony services.
The PSU which operates in the service areas of Mumbai and Delhi garnered Rs 492.3 crore in revenue from operations during June quarter, 25 per cent lower...
than Rs 657.2 crore notched in the year-ago period.
At Rs 1,551.13 crore, its expenses for the quarter were a tad higher compared to the year-ago period.
The losses stood at Rs 703.1 crore in the corresponding period of 2017-18, according to MTNL's regulatory filing.
A household telephony brand in the 90s and early 2000, MTNL's revenue and profitability have come under tremendous pressure with intensified competition in mobile and landline telephony services.
The PSU which operates in the service areas of Mumbai and Delhi garnered Rs 492.3 crore in revenue from operations during June quarter, 25 per cent lower than Rs 657.2 crore notched in the year-ago period.
Bharat Sanchar Nigam Limited (BSNL) has narrowed its losses to Rs 4,785 crore during FY18, even as its income declined to Rs 27,818 crore as against the previous fiscal. Telecom Minister, Manoj Sinha informed this news to Parliament today. BSNL posted a loss of Rs 4,859 crore in 2015-16, Rs 4,786 crore in 2016-17 and Rs 4,785 crore (provisional and unaudited) in 2017-18, Telecom Minister Manoj Sinha said in a written reply to the Lok Sabha. Furthermore, BSNL’s income stood at Rs 32,411 crore (FY16), Rs 31,533 crore (FY17) and Rs 27,818 crore in FY18 (provisional and unaudited), Sinha added.
Since BSNL has incurred losses consecutively for the last three years, it has been declared as ‘Incipient Sick’ as per the guidelines of Department of Public Enterprises (DPE), the minister said. This news was reported by Press Trust of India (PTI).
Accordingly, action has been initiated by the Department of Telecommunications (DoT) for preparation of revival/restructuring plan of BSNL, Manoj Sinha further added.
Sinha said at present, there is no proposal for merger of BSNL and MTNL. “For merger of BSNL and MTNL, there are various challenges/issues related to their employees, debt, properties, government share holding in MTNL etc,” he added.
There have been a lot of talks in recent times regarding the merger of BSNL and MTNL, but Manoj Sinha declined this news. BSNL has been aggressively competing with private telecom firms both in the telecom sector and broadband sector, while MTNL’s lack of innovation is hurting the telco badly.
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