Voice, data volumes raise VSNL net 18%

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Global telecommunications major Videsh Sanchar Nigam Ltd (VSNL) has posted an 18 per cent increase in net profit at Rs 107 crore in the second quarter ended September 30, 2006, compared with Rs 91 crore during the comparable period of the previous financial year. The Tata group company's total income rose to Rs 1,005 crore during the quarter under review, up 5 per cent from Rs 961 crore last year. The company's operating profits improved by 4 per cent to Rs 198 crore during the reporting quarter, compared with Rs 190 crore for the quarter ended September 30, 2005, VSNL said in a release here today.

VSNL's net profit for the half year was at Rs 195 crore, while its revenues for the six-month period stood at Rs 1,961 crore as against Rs 1,890 crore recorded during the same period last year.

Volumes in the company's wholesale voice and enterprise and carrier data businesses continued to grow significantly, with enterprise and carrier data revenues growing 25 per cent on a quarter-on-quarter basis, in spite of price cuts announced during the quarter, it said.

During the quarter, VSNL had reduced prices of its international private leased circuits (IPLC) and internet leased lines (ILL) by up to 25 per cent and 40 per cent respectively. During the period, VSNL also announced plans to build two submarine cable systems. It also signed a memorandum of understanding (MoU) with Etisalat, Saudi Telecom, Telecom Egypt and Telecom Italia Sparkle for the construction of a new cable system, India-Middle East-Western Europe (IMEWE).