The Hindu Business Line : VSNL Q4 net down to a third

Facts and figures
The full-year net dipped by 36.6 per cent to Rs 479.6 crore.
Total income went up 17.5 per cent to Rs 4,009.8 crore.
Total expenditure rose 14.6 per cent to Rs 2,905 crore.

Mumbai , June 26

A one-time gain of Rs 411 crore from sale of long-term investments in the previous fiscal brought down Videsh Sanchar Nigam Ltd's fourth quarter net down to a third for the period ended March 31, 2006.

Net profit for the quarter amounted to Rs 111.5 crore, down from Rs 399.2 crore during the previous corresponding quarter.

This was despite higher revenues as well as higher profit before taxes and exceptional items. Revenues rose by 12.9 per cent to Rs 1,029 crore, up from Rs 911 crore.

Profit before taxes and exceptional items rose by 23.3 per cent to Rs 197.6 crore (Rs 160.2 crore).

The company's net profit for the year ended March 31, 2006, dipped by 36.6 per cent to Rs 479.6 crore, down from Rs 756 crore the previous fiscal, again due to a one-time gain of Rs 468 crore the previous fiscal.

Total income during the year rose by 17.5 per cent to Rs 4,009.8 crore (Rs 3,410.5 crore).

Total expenditure rose by only 14.6 per cent to Rs 2,905 crore (Rs 2,533 crore).

Profit before taxes and exceptional items rose by over 19 per cent to Rs 754 crore (Rs 632 crore).

The profitability of the company's enterprise and carrier data business contributed in a big way to the annual operating profit. While wholesale voice revenues rose to Rs 2,162 crore (Rs 1,876 crore) and results to Rs 460 crore (Rs 309 crore), enterprise revenues rose to Rs 1,261 crore (Rs 1,117 crore), while profits rose to Rs 1,025 crore up from Rs 873 crore.

The company's consolidated net profit amounted to Rs 69.8 crore as against Rs 708.6 crore, while total income amounted to Rs 4,799 crore up from Rs 3,413 crore. The consolidated results include that of VSNL Singapore Pte Ltd in which are incorporated the operations of Tyco Global and Teleglobe International; and that of VSNL Broadband Ltd (earlier Tata Power Broadband).

The Board of Directors has recommended a dividend of 45 per cent for the year.

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