The Hindu Business Line : VSNL net drops 5.3%

Net profit fell to Rs 142 crore for the quarter, from Rs 150 crore a year ago. Total income rose 3.6 per cent, to Rs 1,115 crore, from Rs 1,076 crore. Total expenditure rose 5 per cent, to Rs 812 crore. Analysts attributed the profit decline to the marginal growth in revenues as well as lower margins from declining international long distance rates.

"The company's enterprise revenues growth has not quite compensated for this either," said one of them.

Revenues from the company's wholesale voice service rose to Rs 602 crore from Rs 570 crore, while the segment results were recorded at Rs 105 crore, up from Rs 100 crore.

The enterprise and carrier data revenues dropped to Rs 344 crore, from Rs 320 crore a year earlier, while PBIT were reported at Rs 290 crore (Rs 255 crore).

Volumes in company's wholesale voice and enterprise and carrier data businesses continued to grow significantly, said the company which did not quantify the growth.

Net profit for the nine months ended December 31, 2006, fell to Rs 337 crore, from Rs 365 crore a year earlier. Total revenues rose to Rs 3,082 crore, from Rs 2,981 crore. On BSE, the company's shares closed at Rs 462.3 on Wednesday.

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