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).

Revenues from services other than international telephony and related services continued to increase; they grew 79 per cent, to Rs194 crore, up from Rs93.5 crore; while profit before tax and interest from this segment rose 108 per cent, to Rs132 crore, up from Rs63.6 crore.

For the half-year ended September 30, VSNL has reported a net profit of Rs214.9 crore, 87.6 per cent higher than that of the previous first half, at Rs114.5 crore. Revenues during this period fell 6.9 per cent, to Rs1,572 crore, from Rs1,612 crore.

Consequent to the settlement, an amount of Rs46.9 crore has been included in the net sales during the quarter ended June 2004, in keeping with accounting standards for events happening after balance sheet date, said a company release.