MTNL prunes loss in Q3 to Rs 675 cr

| | Updated on: Feb 11, 2011

Mahanagar Telephone Nigam Ltd (MTNL) on Friday reported losses of Rs 675 crore during the third quarter ended December 31, 2010 compared to a loss of Rs 894.8 crore in the corresponding quarter last year. The losses are due to retirement benefits, increase in dearness relief of pension and high wages.

Total income up

Total income increased marginally to Rs 951 crore for the quarter ended December 31, 2010 from Rs 935 crore during Q3 FY10. The company, which has paid a one-time charge of Rs 11,097.9 crore on account of 3G and BWA liability (over 15-20 years), has amortised Rs 157.6 crore for Q3 FY11.

Staff costs other than retirement benefits have increased from Rs 320 crore to Rs 478 crore. Staff cost for retirement benefits has decreased marginally from Rs 76 crore to Rs 75 crore. MTNL has 5.39 million subscribers and offers services in two circles – Delhi and Mumbai. During this quarter, Rs 326 crore was accounted towards wet lease for infrastructure and other services provided by MTNL for Commonwealth Games held in October 2010. “This includes Rs 84 crore accounted for during the current quarter,” it said.

Rise in demand

The company said the demand for its broadband, 3G and IPTV services has gone up in Delhi and Mumbai. “Despite the fact that it provides broadband services only in Delhi and Mumbai, MTNL has become the second largest broadband service provider in the entire country only after BSNL, with 9,13,708 broadband subscribers. MTNL is making all out and timely efforts to address and meet ever increasing demand for its new services,” the company said in its statement.

During the quarter, 90,553 GSM customers and 23,068 broadband customers were added.

Apart from being restricted to only Delhi and Mumbai, MTNL hasn't had much success in getting private players as partners. Its bid to appoint franchisees for 3G and WiMax services did not find any takers.

Published on February 12, 2011

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