The Hindu Business Line : VSNL Q2 net rises 18 pc

VSNL on Tuesday reported an 18 per cent increase in its net profit at Rs 107 crore for the quarter ended September 30. The telecommunications major's revenues grew by 5 per cent to Rs 1,005 crore against Rs 961 crore for the corresponding quarter in the previous year. . Its operating profit for the second quarter improved by four per cent to Rs 198 crore from Rs 190 crore.

Volumes in the company's wholesale voice and enterprise & carrier data businesses continued to grow significantly; enterprise and carrier data revenues grew 25 per cent on a quarter to quarter basis, in spite of price cuts announced during the quarter, said company release.

VSNL's revenues for the half-year ended September 30 also registered an improvement at Rs 1,961 crore against Rs 1,890 crore in the same period last year. Net profits were at Rs 195 crore.

During the quarter, the company announced a reduction in the prices of International Private Leased Circuits and Internet Leased Lines by up to 25 per cent and 40 per cent respectively. VSNL also announced plans to build two submarine cable systems. The company's plans have made swift progress with an MoU being signed with Etisalat, Saudi Telecom, Telecom Egypt, and Telecom Italia Sparkle for the construction of the India-Middle East-Western Europe (IMEWE) cable system.

The company is now poised to offer managed data services and deliver end-to-end telecommunications solutions to carriers and enterprises globally.

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