MTNL net up 31 per cent in 2003-04

The state-owned telecom major Mahanagar Telephone Nigam Ltd (MTNL) registered a 31.16 per cent increase in net profit at Rs 1,150.47 crore for the year ended March 31, 2004, compared with Rs 877.15 crore profit in the previous financial year.

The company's board approved a dividend of 45 per cent on the paid-up share capital of Rs 630 crore for 2003-04.

"We will start providing triple-play, that is , voice, data and video, over our telecom network in six months," R S P Sinha, chairman and managing director, MTNL, said at the 18th annual general meeting of the company. He also said that 8 lakh new GSM connections would be commissioned in October this year.

The total income of the company increased 10.84 per cent in 2003-04 to Rs 6,683.93 crore from Rs 6,030.22 crore in the previous financial year. The company's income from services registered an increase of 9.7 per cent to Rs 6,369.59 crore in 2003-04, compared with Rs 5,806.53 crore in the previous financial year.

The company's profit before tax increased 31.16 per cent to Rs 1,685.95 crore as on end-march 2004, compared with Rs 1,259.75 crore profit registered for 2002-03.

The employees' remuneration and benefits increased 12.94 per cent in 2003-04 to Rs 1,619.37 crore. Ddministrative and other operating expenses, however, declined 4.1 per cent during 2003-04, compared with the previous financial year.

The earning per share increased by Rs 4.34 to Rs 18.26 in 2003-04. This was because of the Rs 273.32 crore increase in net profit, the company said. The company also witnessed a 9.08 per cent increase in its net worth to Rs 1,089.08 crore over the previous year's net worth of Rs 9,984.45 crore.

MTNL offers telecom services in Delhi and Mumbai. It also operates in Mauritius and Nepal. In Nepal, MTNL offers WLL telephony along with its joint venture partners Videsh Sanchar Nigam Ltd (VSNL), Telecom Consultants India Ltd (TCIL) and a Nepalese company NVPL. The Mauritius operation is managed by MTNL's 100 per cent subsidiary, Mahanagar Telephone Mauritius Ltd.