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MTNL to get Rs 1,380-cr tax refund; shares up 3%

BS Reporter  |  New Delhi 

State-run major Mahanagar Telephone Nigam Ltd (MTNL) would get a tax refund of Rs 1,380 crore for five assessment years.

A senior executive said it had received an order from the (ITAT) for the refund, including Rs 624 crore as interest for 1998-99, 1999-2000, 2000-01, 2002-03 and 2005-06.

However, the cheque for the said amount was yet to come, the official added. The amount would be included in the company’s fourth quarter results. As of now, no decision had been taken on its utilisation, the executive said.

reported a net loss of Rs 894.95 crore in the December quarter, compared with a net profit of Rs 53.10 crore in the year-ago quarter. Sales also declined to Rs 902 crore in the same period. MTNL, which operates in Delhi and Mumbai, has a total subscriber base of 4.69 million. It also launched ahead of private operators. It added 86,706 users in February, against 45,067 in January.

Offlate, MTNL’s market share and subscribers are declining because of low rates and stiff competition. Shares hit a high of Rs 77 during the day, but closed at 74.95, up 3.09 per cent.

First Published: Sat, March 20 2010. 00:43 IST