VSNL bottomline rockets 93% to Rs 127 cr

BS 200 SCORECARD

Videsh Sanchar Nigam (VSNL), the telecommunication and internet service provider, has recorded a 92.7 per cent jump in net profit at Rs 126.8 crore in the first quarter ended June 30, 2004, compared with Rs 65.8 crore in the same quarter of previous year. Total revenue declined 11.56 per cent to Rs 819.2 crore (Rs 926.3 crore).

The company, in a press release, said: "The decline in revenues is mainly attributed to significant reduction in settlement rates, interconnect usage charges over the last year and the growing grey market in the international long distance sector that thrives on the arbitrage opportunity on account of high access deficit charge payable by legitimate operators for any international call."

For the quarter under review, the company has included Rs 46.9 crore in its net sales as a consequent to a settlement reached. VSNL's total expenditure fell 23.63 per cent to Rs 569.5 crore (Rs 745.8 crore). The company network cost has reduced substantially to Rs 480.5 crore (Rs 620 crore).

Depreciation increased to Rs 54.7 crore (Rs 38.7 crore). The company made a provision of Rs 68.4 crore (Rs 37.3 crore) for tax. The company has made sizeable investment on overall infrastructure, for its existing offerings as well as for broadband services.

The significant enhancement in capacities will better equip the company to effectively compete and grow rapidly in the times to come, the release added.