BSNL FY11 Result to Post Rs 2725 Crore Loss
State-owned telecom firm BSNL is expected to post 50% higher losses for the year ended March 31, capping a series of dismal results in the last four years that saw the erstwhile monopoly being reduced to a bit player in the fast-growing market.
The unlisted company has told the government that it will post 2,725-crore losses for the year-ended March 11.
The unlisted company has told the government that it will post 2,725-crore losses for the year-ended March 11.
BSNL said it expects to turn profitable in the year through March 2013, but to post a net loss for the just ended fiscal year and the ongoing year that began on April 1. But BSNL's losses are expected to narrow to INR6.23 billion on revenue of INR365.69 billion in the current fiscal year, said the company's communication to the government advisory body for state-run companies.
BSNL, once the country's flagship telecom company, had posted a net loss of INR18.23 billion on revenue of INR320.46 billion in 2009-2010. This was the first time that the state-run company had slipped to a loss since it was hived off as a separate company in October 2000. The company has been unable to keep pace with the subscriber growth seen by private players such as leader Bharti Airtel Ltd. and Reliance Communications Ltd., mainly because of capacity constraints and lower service quality.
In 2009, Prime Minister Manmohan Singh , worried about the steep decline in BSNL's profitability over the years, sought revival suggestions from Sam Pitroda Pitroda and banker Deepak Parekh. They in turn recommended a strategic 30% stake sale and staffs cut by 100,000 and also raise funds from the sale of its infrastructure, such as signal towers and real estate. But the government's failure to act on the Pitroda report, despite the BSNL board's approval, has posted a serious setback in plans to revive the telco. BSNL's plans to sell 30% stake through an IPO. But the telecom department told a parliamentary committee last year that BSNL's listing will be taken up only after the company's performance improves in order to get the right valuation.
It is not a surprise BSNL is posting losses and perhaps will continue to post losses until they close...horrible customer service, absolutely no delight to be with BSNL and BSNL broadband...it is BSNL noband!!! poor show, BSNL!
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