BSNL expects two-fold rise in FY04 profit

Bharat Sanchar Nigam Ltd (BSNL) is expected to double its net profit to around Rs 3,000 crore during 2003-04, while revenues are likely to increase marginally to Rs 29,000 crore.

"During 2003-04, our net profit is estimated to be around Rs 3,000 crore, which is almost double the previous financial year's net profit of Rs 1446 crore, and our revenue is likely to touch Rs 29,000 crore," chairman and managing director VP Sinha told reporters here yesterday.

The company had reported a 76 per cent decrease in its profits to Rs 1,444 crore in 2002-03 though its revenues went up 5 per cent to Rs 25,892 crore. The lower profits were attributed mainly to an increase in establishment costs arising out of arrears, pensions and salaries.

Sinha said the estimated profit for the year-ended March 2004 had been earned on additional 45 lakh lines. He said that BSNL's cellular subscribers are expected to rise from 5 million to 25 million in a year.

Though the PSU telecom services provider is routing its international calls through VSNL for the time being, Sinha said the company intends to go ahead with its own network. "We are going ahead with our own international long distance plans and will have agreements very soon with a number of international carriers in various countries," he said.