VSNL Q2 net 81 per cent

27 October 2004

Mumbai: Videsh Sanchar Nigam Ltd (VSNL) has reported an 80.9 per cent increase in net profit for the second quarter of the current fiscal on a slight decrease in total income for the same period.

Net profit amounted to Rs88.1 crore (Rs48.7 crore) while total income amounted to Rs807.9 crore (Rs821.8 crore).

The growth in net profit was largely on account of an expenditure of Rs56.8 crore towards voluntary retirement schemes during the corresponding quarter of the previous year, which had reduced considerably the net profit for that quarter. Partly, the growth in net profit is also due to containment of expenses, especially network costs.

Total expenditure during the quarter was Rs607.2 crore, down from Rs658.2 crore during the year-ago second quarter. Network costs were down to Rs490.6 crore, from Rs564 crore. Depreciation amounted to Rs56.8 crore (Rs40.6 crore).

Profit before tax and exceptional items, at Rs144 crore, showed an 18 per cent increase over the previous year''s Rs122 crore. Profit before tax and after exceptional items was at Rs144 crore.

Provision for taxes at Rs56 crore, was considerably higher than a year ago( Rs16.5 crore). Revenues from international telephony and related services, which accounted for 75 per cent of total revenues for the quarter, showed a 14.2 per cent decline, falling to Rs584.6 crore, from Rs682 crore. Profit before interest and tax from this segment showed a 4 per cent increase, and stood at Rs160 crore (Rs154.6 crore).