BackMTNL net loss narrows to `947 cr in September quarter
Loses narrowed on account of lower provisions for employee retirement benefits
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New Delhi: After reporting widening of losses for nine quarters in a row, state-run telecom company Mahanagar Telephone Nigam Ltd (MTNL) on Wednesday narrowed its stand-alone net loss to ₹ 947 crore for the July-September period of this year mainly on account of lower provisions for employee retirement benefits.
The company had reported a loss of ₹ 1,093.72 crore in the same period a year ago. MTNL had last reported narrowing of loss in fourth quarter ended 31 March 2011.
“I don’t over commit, but we have elements that make us confident of returning to profit. The loss narrowed mainly because of certain provisions that we make for employees. We can do turn around if all issues (already placed before a group of ministers) are resolved," MTNL chairman and managing director A.K. Garg told PTI.
The telecom company reported lower provisions for employee retirement benefits at ₹ 121.3 crore during the period under review. In the same period last year, MTNL had set aside ₹ 378.72 crore under this head.
Total income during the period under review is down 3.4% to ₹ 813.45 crore from ₹ 842 crore in the corresponding period of the previous fiscal.
“The total income also contributed to performance of the company. Earlier, there used to be decline in higher range which is now limited to about 3%," Garg said.
In the second quarter of the current fiscal, the total amount under salary and employee benefits, including actual payouts and provisions, was ₹ 820 crore which is higher than the total income of ₹ 813.45 crore by 1%. In the same period last year, the total figure under employee benefits amounted to 115% of total income (expense of ₹ 970 crore against a total income ₹ 842 crore).
“It is only debt service that is deteriorating the company’s performance apart from pending issues that are to be resolved by government. We have no element deterring our growth," Garg said.
Shares of the company closed at ₹ 15.03 a unit, up by 1.21%, on the BSE.
MTNL has prepared a detailed roadmap, which suggests lowering of debt burden and annual investment of ₹ 500 crore among other things, to make the company profitable by 2017-18.
A group of ministers, headed by finance minister P. Chidambaram, is looking at issues like refund of spectrum cost, pension benefits etc.
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