Bharat Sanchar Nigam (BSNL) narrowed its net loss to Rs 5,367 crore in FY24 from Rs 8,161 crore in FY23, on the back of lower expenses, especially finance cost, and higher non-operating income.
Revenue from operations grew 1% to Rs 19,343.6 crore, missing the target of Rs 20,008 crore, set by the government as part of the Rs 3.2 trillion revival package. The company missed the government’s target of Rs 20,008 crore. Revenue from cellular services and enterprise segment saw a decline during the year.
Total expenses fell 2.5% to Rs 26,683 crore. Of this, employee cost, which includes salaries, wages, allowances, and other benefits, was at Rs 8,304 crore, an increase of 4.4% from FY23. Employee cost accounts for 31.1% of the total expenses and 43% of the operating revenue of BSNL.
Cellular services, which contributes 36% to BSNL’s revenue from operations, witnessed a 6% fall to Rs 7,006 crore. Enterprise business revenue fell 4.5% to Rs 5,090 crore.
The decline cellular services revenue can be attributed to subscriber churn in the absence of 4G services by the company.
Revenue from the broadband business rose 9% to Rs 3,662 crore.
For FY25 and FY26, the company has revenue targets of Rs 24,428 crore and Rs 28,476 crore, respectively. For FY27 and FY28, the company has a target to clock Rs 33,553 crore and Rs 35,960 crore in revenue, respectively.
In 27 consecutive months till March, the company lost 26.2 million subscribers, taking its total subscriber base to 88.06 million as of March end. The company has started deploying 4G using indigenous stack in areas of Punjab, Haryana, Himachal Pradesh, Uttar Pradesh, and Uttarakhand.
The company recently inked an agreement with Boston Consulting Group (BCG) under which the latter will prepare a three-year roadmap to transform the telecom operator so that it can effectively compete with private telecom operators. BSNL will be paying BCG Rs 132 crore for the advisory service.
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From: financialexpress
Financial News
