VSNL posts 5.5 pc rise in Q3 net

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Our Bureau

Mumbai, Jan. 31

VIDESH Sanchar Nigam Ltd has reported a 5.5 per cent increase in net profit for the third quarter of the current fiscal. This is on the back of higher sales as well as higher one-time income.

Net profit for the quarter amounted to Rs 150.1 crore as against Rs 142.3 crore in the corresponding quarter of the previous fiscal.

Net sales rose by 16 per cent to Rs 977.5 crore (Rs 840.5 crore) while total sales rose by 25 per cent, to Rs 1,075.5 crore (Rs 862.2 crore).

This was due to higher other income of Rs 43.7 crore (Rs 21.7 crore) of which Rs 14 crore was an award from international arbitration. The company also received interest on income-tax refunds for Rs 54.3 crore during the quarter.

Total expenditure amounted to Rs 772.4 crore (Rs 670.8 crore). Depreciation amounted to Rs 88.2 crore, up from Rs 58.3 crore. Profit before taxes and exceptional items at Rs 223 crore was higher by 68 per cent. Provision for taxation amounted to Rs 72.9 crore (Rs 48.6 crore).

The profit before tax margin was 14 per cent while the EBITDA margin was 21 per cent, said Mr R. Dhar, Chief Financial Officer, VSNL.

International telephony accounted for around 47 per cent of the revenues during the quarter. In December 2005, the company clocked over 600 million long distance voice minutes, the highest ever monthly traffic in the company's history, according to Mr N. Srinath, Executive Director, VSNL.

The company had cash and cash equivalents amounting to Rs 818 crore as on December 31, 2005. The capital expenditure as on that date for the year was Rs 584 crore. VSNL rose on the stock exchanges, gaining Rs 13.40 or 3.63 per cent on the Bombay Stock Exchange to close at Rs 382.65.

(This article was published in the Business Line print edition dated February 1, 2006)
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