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Thursday, Jan 22, 2004

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Corporate Results - Telecommunications
Info-Tech - Financial Performance

VSNL net jumps 121 pc in Q3

Our Bureau

Mumbai , Jan. 21

A ONE-TIME profit of Rs 94.1 crore from the sale of investment in Inmarsat Ventures Plc, a nearly halved provision for taxation as well as considerably lower current tax has enabled VSNL to report a 121 per cent increase in net profit, year-on-year, for the quarter ended December 31, 2003.

Net profit increased to Rs 180.9 crore, up from Rs 81.8 crore reported for the corresponding quarter of the previous year.

This increase in net profit is being recorded by the company after a string of quarters when it has been reporting declining net profits year-on-year.

Net sales for the quarter was lower by 22.8 per cent at Rs 773.5 crore (Rs 1003 crore) on account of lower revenue from international telephony and related services, which amounted to Rs 662.3 crore (Rs 940 crore). Income from other services increased to Rs 111.2 crore from Rs 107.9 crore.

Almost all items of expenditure — network, operating expenses and salaries — showed a decline, leading to a 22.4 per cent decline in total expenditure, at Rs 646 crore (Rs 833 crore).

Depreciation was higher at Rs 42.8 crore (Rs 35.6 crore).

Provision for taxation, at Rs 47.6 crore (Rs 96.8 crore), and current tax, at Rs 15.8 crore (Rs 96.8 crore), was considerably lower. Deferred tax amounted to Rs 31 crore from deferred tax credited at Rs 3.4 crore the previous year.

VSNL has entered into an agreement with Bharat Sanchar Nigam Lltd, under which VSNL's infrastructure will be used for carrying their ILD traffic for one year following the expiry of the current arrangement on February 13, 2004.

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