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VSNL net climbs 6 pc

Our Bureau

MUMBAI, Oct. 30

VIDESH Sanchar Nigam Ltd has recorded a 6 per cent rise in net profit but a 4.5 per cent decline in total income for the quarter ended September 30, 2001, compared to the corresponding quarter of the previous year.

Net profit rose to Rs 368.5 crore from Rs 347.2 crore, while total income fell to Rs 1,744.2 crore from Rs 1,827.1 crore.

The fall in revenue was chiefly on account of telephone revenues falling by 6.66 per cent; this itself due to a decline in the total accounting rate of 20 per cent between the previous corresponding quarter and the one under consideration.

A total increase in international telephony traffic of 13 per cent could not annul the effect of this, said Mr R.S.P. Sinha, Director (Finance), at the company's analysts' meet here on Tuesday.

(Leased data circuits were up 156 per cent and revenue from value-added services up 19 per cent). Internet revenues too fell 5.82 per cent due to steep reduction in tariffs. The company said given the current scenario, retaining a flat growth itself was a feat, and that although the growth earnings of the past were not possible, rates have bottomed out and revenues will not be significantly affected.

(The income during the second quarter of the previous year, however, included Rs 24.5 crore by way of revenue from Intelsat, which has subsequently been privatised.)

Other income declined marginally to Rs 148.8 crore from Rs 153.9 crore. Total expenditure registered a decline of over 6 per cent to Rs 1,175.6 crore (Rs 1,251.5 crore), with staff cost, operating cost and administrative expenses showing a decline.

Depreciation amounted to Rs 34.4 crore (Rs 28.3 crore). Profit before tax and extraordinary items was at Rs 534.2 crore (Rs 547.3 crore). Provision for taxation stood at Rs 154.7 crore (Rs 163.9 crore).

The company ended the quarter with an Internet subscriber base of 6,24,158, up from 5,07,538 at the end of their second quarter of the previous year.

Net profit for the half-year ended September 30, 2001, was near stagnant at Rs 734 crore compared to Rs 730.1 crore; total income declined 8 per cent to Rs 3,386.3 crore (Rs 3,684.1 crore).

The company's net profit margin for the half-year currently ended was at Rs 21.68 crore (Rs 19.82 crore).

The Chairman and Managing Director, Mr S.K. Gupta, said falling accounting rates and cheaper access costs will lead to growth in traffic volumes. ``This will lead to VSNL maintaining a steady growth trend in its performances.''

With the need to maintain non-viable services disappearing, the company will ``focus its full attention and capabilities on profitable services''.