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|June 1, 1998||
MTNL net profit up by 15.03 per centThe state-owned Mahanagar Telephone Nigam Limited has posted a 15.03 per cent increase in its net profit to Rs 10.73 billion for the year ended March 31, 1998, up from Rs 9.32 billion the previous year.
According to the unaudited financial results announced by the company, its total income went up 13.41 per cent, from Rs 40.96 billion to Rs 46.45
The markets received the news in a lacklustre manner with the MTNL scrip losing 10 paise on the Bombay Stock Exchange over its previous close to end the day at Rs 237.80.
While income from services during the period jumped 13.56 per cent to Rs 45.77 billion from Rs 40.3 billion, total expenditure went up by 22.65 per cent to Rs 23.93 billion from Rs 19.51 billion.
During the period, MTNL's interest burden came down substantially from Rs 1.47 billion to Rs 823.2 million, a fall of 44.23 per cent.
Its other income increased marginally by 3.82 per cent, from Rs 653.1 million to Rs 678.1 million.
The company improved its performance during the second half of the year by posting a 20.73 per cent growth in net profit to Rs 5.44 billion, when compared to the same period the previous year.
Its income from operations also went up by 18.18 per cent to Rs 23.61 billion, reflecting faster growth during this period.
In December last year, MTNL, which provides basic-telephone services in New Delhi and Bombay, completed a successful global depository receipts offering of 70 million shares at Rs 235 per share, raising $418 million in the process.
Consequently, the government holding in the company came down from 65.73 per cent to about 55 per cent.
In February this year, the company's plans to provide cellular services in Delhi and Bombay ran into rough weather with the Telecom Regulatory Authority of India invalidating its licence to provide the service.
MTNL's licence was amended last year by the Department of Telecommunications to include provision of cellular services, which was challenged by cellular operators.
MTNL has challenged the TRAI order in the Delhi high court.
While the company has a monopoly in its services, it is shortly expected to face competition in Bombay with Hughes Ispat, the basic-service licence holder for Maharashtra, expected to launch its services in the next few months.
- Compiled from the Indian media
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