Vsnl Profit Soars 77% To Rs 736 Cr

Net profit at Videsh Sanchar Nigam Ltd (VSNL) rose 77.22 per cent to Rs 736 crore in the first half of fiscal 1998-99, primarily riding a four-and-a-half-times increase in other income. The public sector undertaking yesterday reported a turnover of Rs 3,592.50 crore in the six-month period, up 17.26 per cent over the first half of the previous year.

The carrier has posted the phenomenal rise in profitability despite a 26 per cent increase in depreciation charges and a 62.32 per cent increase in provision for taxes in the six months ended September 30 this year. Interest costs remained zero in the period.

 

VSNL's annualised earnings per share (EPS) rose over 77 per cent to Rs 154.95 in the first half of this fiscal.

The EPS in fiscal 1997-98 stood at Rs 101.88. According to a press release from the company, "The cumulative results for the half year ended September 30, 1998 indicate a strong financial growth led by 15.17 per cent increase in volume of traffic handled."

The number of minutes handled by the carrier increased from 922.82 million minutes from 801.24 minutes.

As of September 30 this year, the number of international circuits increased over 17 per cent from 14,509 (end of September 30, 1997) to 17,000.