MTNL Q3 net loss dips to Rs 671 cr

State-run telecom operator MTNL today posted a lower net loss of Rs 671.04 crore for the quarter ended December 31, 2010, but high employee cost continues to impact the company's revenues.

The company had a net loss of Rs 919.97 crore for the same quarter last year, MTNL said in a filing to the Bombay Stock Exchange (BSE).

MTNL's net continues to be dragged down by retirement benefits, increase in dearness relief of pension and high wages.

Total income increased marginally to Rs 1,068.02 crore for the quarter ended December 31, 2010 from Rs 1035.90 crore during Q3 FY10.

The company, which has paid a one-time charge of Rs 11,097.9 crore on account of 3G and BWA liability (over 15-20 years), has amortised Rs 157.6 crore for Q3 FY11.

MTNL with 5.39 million subscribers, offers services in two circles -- Delhi and Mumbai as on December 31, 2010.

The company's scrip closed at Rs 42.35 on the BSE, up 2.79% from the previous close.

During this quarter, an amount of Rs 326 crore was accounted towards wet lease for infrastructure and other services provided by MTNL for Commonwealth Games held in October, 2010.

"This includes Rs 84 crore accounted for during the current quarter," it said.