MTNL profit dips 26%

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State-owned telecom major Mahanagar Telecom Nigam (MTNL) today reported 25.53 per cent dip in net profit to Rs 121.02 crore in the quarter ended September 30 from Rs 162.53 crore in the corresponding period last year, on the back of stiff competition from private players and its reduced tariff plans.

Chairman and Managing Director R S P Sinha said, "One of the reasons for dip in profits is the ADC (access deficit charge) on fixed outgoing calls being reduced from Rs 0.30 a minute to 1.5 per cent of AGR (annual gross revenue), apart from cut in tariffs."

Anita Soni, director - finance, MTNL, said, "Pending income of Rs 36 crore from Reliance Communications in the second quarter of 2005-06, IUC retained in ILD calls and termination of various revenue are other major reasons for the dip in income."

The company's total income declined 4.65 per cent to Rs 1,376.76 crore for the September 2006 quarter from Rs 1,444.05 crore in the comparable quarter of 2005-06.

Its income from services also saw a fall of 4.5 per cent to Rs 1,220.41 crore in the second quarter from Rs 1,276.75 crore in the same period last year.

However, the operator's income from mobile services shot up 42.02 per cent to Rs 182.61 crore in the quarter from Rs 128.58 crore a year ago. MTNL said it had added 1.2 lakh subscribers in the Delhi and Mumbai circles.

According to CMD, the year 2007-08 will be an eventful one for MTNL as revenues from "our broadband, IPTV and mobile services will increase. Also, we have introduced 25 new tariff plans".