BSNL rings in profit with cuts in administrative cost

GN Bureau | November 18, 2015


#BSNL   #PSU  

Reversing in the welcome trend, state-run BSNL has reported an operating profit of Rs 672 crore for the financial year 2015. This has been achieved due to fall in administrative costs and jump in revenues.

The company had posted an operating loss of Rs 691 crore in the previous fiscal.

BSNL chairman and managing director Anupam Shrivastava said income from services increased by 4.16 per cent to Rs 27,242 crore in 2014-15, which is highest in comparison to the previous five years. Income from services stood at Rs 26,153 crore in 2013-14.

"BSNL had bad results for the last few years, but in year 2014-15, it has been able to reverse the trend. Also it is a known fact that most of the telecom majors are having heavy debt burdens but it still continues to be relatively better, showing a low debt-equity ratio," Shrivastava said.

He added the debt equity ratio of BSNL is around 0.13 per cent, which is lowest in the industry. Shrivastava said BSNL is making relentless efforts to revive itself.  BSNL will be investing Rs 7,700 crore in the current financial year to expand network.

The company also plans to launch 4G LTE services on 2600 MHz band in a couple of cities by the end of March. It has taken various customer centric initiatives such as free night calling, free roaming and providing a minimum broadband speed of 2 Mbps.

Shrivastava said in 2006, BSNL was the number one operator in mobile and landline services as it was able to expand its network but during 2006-2012, it was not able to procure equipment, which led to its downfall. "The market expanded rapidly during this period and we failed to expand our network because of non procurement of equipment and we missed the voice opportunity," he said.

Shrivastava though added that these days, data is growing rapidly and they are investing heavily for data.

"BSNL is focussing on data. Currently 10 per cent of the revenue is coming from mobile data," he said. The CMD further said BSNL has started to monetise its towers by entering into agreements with other operators and there is 42 per cent increase in tower business.

 "A tower subsidiary will be created as the Cabinet has already cleared the proposal for that," he said.

 The net loss of BSNL though increased to Rs 8,234 crore for the reported fiscal compared with Rs 7,020 crore last year, mainly on account of asset depreciation calculated as per the Companies Act. The loss could have come down to Rs 5,370 crore if the company would have calculated its asset depreciation as per the old Act.

Comments

 

Other News

My musical journey has been really beautiful: Harshdeep Kaur

Harshdeep Kaur is a playback singer better known for her Sufi renditions. She sings Hindi as well as Punjabi. She sang ‘Ik Onkar’ in Rang De Basanti apart from several other soulful songs. Her track ‘R.I.P.’ composed by AR Rahman was part of Oscar-winner Danny Boyle’s film

BJP lawmakers top the list in hate speech cases

Out of all MPs and MLAs in office, 58 have declared cases related to hate speech. This includes union minister for drinking water and sanitation Uma Bharti along with 14 other Lok Sabha MPs. The list also includes 8 state ministers. A party wise analysis reveals that BJP has the highest numb

After its withdrawal from Meghalaya and Arunachal, is it time to review AFSPA in other areas too?

After its withdrawal from Meghalaya and Arunachal, is it time to review AFSPA in other areas too?

Togadia, Sinha and anti-Modi prejudices masked by empty rhetoric

There is an uncanny similarity in the pathological opposition to prime minister Narendra Modi by two members of the right wing, Pravin Togadia and Yashwant Sinha. They come from a diverse social and political background; yet they share a common strand that shows an unmitigated hatred towards

“We are becoming American digital colonies”

Data is the new oil; and it needs to be protected. In an interaction with Governance Now, Lionel Baraban, CEO of Famoco, talks about how the French tech firm is developing secure business devices to safeguard data against going to other countries. What are the major roles o

Goa Shipyard and MTU, Germany to manufacture MTU engines in India

Goa Shipyard Ltd (GSL) and MTU, Germany have agreed to cooperate in the  local manufacturing of technologically-advanced MTU series 8000 engines in India. Under the agreement, which was signed at India’s leading defence trade show Defexpo-18, the companies will manufacture the 16-

Current Issue

Current Issue

Video

CM Nitish’s convoy attacked in Buxar

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter