MTNL Reports Q3

Indian public sector carrier MTNL reports Q3 earnings

January 30, 2006

2 Min Read

NEW DELHI, India -- The Board of Directors of MTNL have taken on record the Unaudited financial results for the 3rd quarter ended on 31.12.2005. MTNL has made an impressive performance during this quarter-ended 31.12.2005 despite stiff competition from other operators and also downward revision of access deficit charges based on regulatory changes introduced in Feb. 2004 and Feb. 2005. Inspite of this income from services has gone up by Rs. 340.03 Million. Since other income has come down substantially, it has affected the total income. MTNL has generated total income of Rs 13620.22 million during the third quarter of 2005-06 as compared to Rs 13894.43 Million during the corresponding quarter of previous year ended on 31.12.2004.

As compared to the corresponding quarter of the previous year there is an increase in income of Mobile services from Rs 681.58 million to Rs. 1534.23 million i.e by Rs. 852.65 million which is equivalent to 125.10%. As compared to the previous quarter of current financial year the income from mobile services has gone up by Rs. 170.70 million, which is equivalent to12.52 %.

The staff expenses during this quarter ended on 31.12.2005 has gone up from Rs.4251.17 million to Rs.4868.80 Million i.e. by Rs.617.63 Million which is equivalent to 14.53% as compared to the corresponding quarter of the previous year ended on 31.12.2004. The increase in staff expenses is mainly on account of increase in provision of pension and change in the policy of payment of leave encashment resulting in sudden increase of employees cost in third quarter leading to decrease in profit.

The administrative and other operating expenses has gone down from Rs.2666.00 million to Rs. 2146.70 Million i.e. by Rs. 519.30 million which is equivalent to 19.48 % as compared to the corresponding quarter of the previous year ended on 31.12.2004.

MTNL has earned a net profit of Rs 1270.28 Million during this quarter as compared to Rs.1903.94 Million during the corresponding quarter of the previous year ending on 31.12.2004.

During this quarter, there has been a tremendous increase in the Cellular subscriber base as MTNL has a total of 5509312 subscribers and total cellular subscriber had increased to 1526422 as on 31.12.2005.

The board has also decided to pay interim dividend @30% on the paid-up equity of Rs. 630 crores on the record date which will be decided soon.

Mahanagar Telephone Nigam Ltd. (MTNL)

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