The Hindu Business Line : VSNL net drops 21 pc in Q3

VIDESH Sanchar Nigam Ltd (VSNL) has reported a year-on-year 21.3 per cent drop in net profit for the quarter ended December 31, 2004, on a marginal increase in total income.

Net profit for the third quarter declined to Rs 142.3 crore, from Rs 180.9 crore during the corresponding quarter of the previous year.

The trend of several quarters continued; the company's revenue from international telephony and related services continued to decline. This segment's revenue was at Rs 603 crore during the quarter, down from Rs 669 crore previously. Income from other services increased to Rs 223.6 crore, more than doubling from Rs 104.4 crore in the year-ago quarter.

The company continued to witness sustained growth in the enterprise data segment business (which falls under other services), said a news release from the company. The revenues from the national long distance business also showed strong growth.

Yet total income increased only 3.15 per cent, to Rs 849.3 crore (Rs 823.3 crore). Income operations rose to Rs 827 crore (Rs 773.5 crore) but other income was considerably less, at Rs 22.2 crore (Rs 49.8 crore).

Total expenditure increased 3.38 per cent, to Rs 668 crore (Rs 646 crore). While the company was able to effect a decrease in network costs to Rs 534 crore (Rs 576.6 crore), other items of expenditure registered increases.

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