BSNL Narrows Loss: State-owned Bharat Sanchar Nigam (BSNL) has marginally narrowed its net loss to Rs 2,785 crore in the April-September period from Rs 2,951 crore in the year-ago period, according to financial statements. This came on the back of an increase in revenue and income tax-related adjustment of Rs 168 crore in the July-September quarter.
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BSNL Narrows Loss: Financial Performance
Revenue from operations grew 10.4% on the yearly basis to Rs 9,235 crore during the 6 months ended September on the back of surge in revenue from all its business segments consumer mobility, enterprise business and consumer fixed access verticals.
Total expenses of BSNL loss 4.5% y-o-y to Rs 12,890 crore. Of this, employee costs were at Rs 4,042 crore, an increase of 5.7% from the year-ago period. Employee costs account for 31% of the total expenses and 44% of the operating revenue of the telecom.
Official Statement Of The BSNL
The official statement the company said – BSNL company is making operating profit, and its EBITDA (earnings before interest, taxes, depreciation, and amortisation) has risen nearly 57% y-o-y to Rs 904 crore .
BSNL’s capital expenditure requirements and expenses related to adjusted gross revenue (AGR) dues, among others, are borne by the government as per the earlier revival package for the company. For example, the company received a funding of Rs 3,000 crore from the government on September 30, and in lieu of that the company issued equity shares to the government, according to its financial statements.
- Consumer mobility business, which includes revenue from cellular services, witnessed around 2% increase in revenue to the yearly basis Rs 3,473.5 crore.
- Separately, revenue from cellular services, which contributes nearly 27% to the company’s revenue, fell 6.6% yearly Rs 2,522 crore.
BSNL Narrows Loss: Reason Of The Increasing Revenue
This is because the company is yet to deploy its 4G services pan-India and the benefit from the increase in mobile tariffs by the private telecom operators came only in the July-September quarter. Prior to that, BSNL was witnessing a fall in revenue from cellular services.
BSNL Narrows Loss: Why Company Revenue Was Down?
mobility business fell 6% sequentially and 0.5% (y-o-y )to Rs 1,666 crore. In the July-September quarter, the company added 6.25 million mobile users on the back of users’ port-out from private telecom operators.
As of September end, BSNL’s mobile subscribers’ base was at 91.9 million. The company’s enterprise business revenue loss 12 % yearly Rs 2,291 crore in the April-September period.
BSNL loss narrows to Rs 2,785 cr in H1FY25, revenue up 10% https://t.co/l6P5ry2aSm
— Financial Express (@FinancialXpress) November 26, 2024
What Is The BSNL Future Target?
For FY25 and FY26, the company has revenue targets of Rs 24,428 crore and Rs 28,476 crore, respectively. For FY27 and FY28, the company has a target to clock Rs 33,553 crore and Rs 35,960 crore in revenue, respectively. The revenue targets are set by the government as part of the Rs 3.2-lakh-crore revival package.
The Atmanirbhar Bharat initiative, BSNL has placed a purchase order for 1 lakh 4G sites for deployment of indigenous 4G technology, Sekhar said, adding that the equipment is upgradable to 5G.
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