MTNL Q1 loss widens by 88.45%
State run MTNL today said it has widened its net loss by 88.45 % at Rs 850 crore for the first quarter ended June 30, 2011, mainly on account of expenditure on staff cost and retirement benefits.india Updated: Aug 10, 2011 20:55 IST
State run MTNL on Wednesday said it has widened its net loss by 88.45 % at Rs 850 crore for the first quarter ended June 30, 2011, mainly on account of expenditure on staff cost and retirement benefits.
The company had a net loss of Rs 451.4 crore in the April-June quarter last year, MTNL said in a statement. Total income declined to Rs 843 crore during the quarter under review, against Rs 971.5 crore in the same period last fiscal.
During the quarter, the company had actual payout on staff cost for retirement benefit at Rs 108 crore, up 60.71 % from Rs 67 crore in the year-ago period.
The company had made a total expenditure of Rs 1,175.5 crore during the first quarter, up nearly 6 % in the same quarter last year. MTNL's operative revenue stood at Rs 813.18 crore during the period as compared to Rs 952.95 crore in the corresponding quarter of the last year.
"This is on account of MTNL's operations being geographically limited to the already saturated metros of Delhi and Mumbai and MTNL is facing maximum competition from other operators," the company said.
However, MTNL's Broadband and 3G services continue to grow. "MTNL despite the fact that it provides Broadband services only in the Delhi and Mumbai has become the third largest broadband service providers in the entire country with 9,61,131 broadband subscribers on its roll," the company said.
The company had deployed enough capacity for mobile and broadband connections to meet the growing demand, the release added. As per fiscal year 2009-10, the company's manpower stood at 44,910. During the quarter ending on June 30, 36,834 GSM mobile phone customers and 18,814 broadband customers were added.
MTNL's 3G/2G GSM subscriber base has gone up to 52,36,171 as on June, from 51,99,337 subscribers as on March 31 in a short period of time. However, as per Trai data for the month of June, the struggling state-run telecom company MTNL for the first time reported loss in customer base.
The company lost 2,340 wireless subscribers in June and it subscribers of the segment dipped to 5,499,060 in June from 5,501,400 in May.
Shares of MTNL today closed at Rs 43.40 on the BSE, up 8.91 % from previous close.
First Published: Aug 10, 2011 20:54 IST