VSNL net slides 42%

Internet and telephony major Videsh Sanchar Nigam Ltd has posted a 42 per cent decline in net profit to Rs 61.42 crore in the second quarter ended September 30, 2007, as compared with Rs 106.92 crore in the corresponding period last year.

The company also announced its decision to change its name to Tata Communications. The name change is subject to regulatory and statutory approvals as well as the approval of its shareholders.

Total income dropped to Rs 987.94 crore in the quarter, from Rs 1,003.07 crore in the corresponding period a year ago.

The company said in a statement that it had received the approval of its directors' to change its name to Tata Communications.

The new name and identity will help the company leverage the Tata Group's brand equity and global recognition.

Previously state-owned VSNL was divested in 2002.

The government now holds a 26.12 per cent stake in the company with 50.11 per cent held by the Tata Group and the remainder by public shareholders.

It also owns global submarine cables and Internet Protocol networks.