mtnl

When was the last time state run telco MTNL actually made a profit? The quarter ending September 30, 2009 (Q2-FY10), when it reported a profit of Rs 20.6 crore on revenues of Rs 972.1 crore. This makes it 16 quarters of losses (four years).

What’s even more noteworthy is that MTNL’s losses have been higher than its revenues since the quarter ending June 30, 2011 (Q1-FY12), when it reported a loss of Rs 1,058.3 crore on revenues of Rs 833 crore, making it nine consecutive quarters (two years and three months) of losses surpassing revenues.

This continues in the current quarter as well: Rs 947.1 crore loss on revenues of Rs 813.5 crore for the quarter ended September 30, 2013 (Q2-FY14).

The loss was however 24.6% lower quarter-on-quarter (QoQ) from Rs 1,256.2 crore loss in the previous quarter and 13.6% lower year-on-year (YoY) from Rs 1093.7 crore loss in the same quarter last year, whereas the net income has declined by 7.9% QoQ from Rs 883.2 crore in the previous quarter and 3.4% YoY from Rs 842.1 crore in the same quarter last year.

Basic Services: MTNL continues to generate majority of its revenues from Basic (Fixed line) services, which reported declined revenues of Rs 640.8 crore for the quarter, down from Rs 674.1 crore in the previous quarter and Rs 668.9 crore in the same quarter last year. The loss before tax however improved to Rs 499.6 crore loss for the quarter, from Rs 752.2 crore loss in the previous quarter and Rs 586.9 crore in the same quarter last year. Basic services accounted for 78.8% of MTNL’s net income for the quarter, up from 75.8% in the previous quarter.

Cellular Services: Revenue from Cellular services also declined significantly to Rs 178.7 crore for the quarter, down from Rs 215.4 crore in the previous quarter and Rs 184.4 crore in the same quarter last year. The loss before tax although improved marginally to Rs 122.3 crore, from Rs 123 crore in the previous quarter and Rs 160.8 crore loss in the same quarter last year. Cellular services accounted for 22% of MTNL’s net income for the quarter, down from 24.2% in the previous quarter.

As always, MTNL hasn’t shared any operational information for the quarter, although it had inked a network and infrastructure sharing deal with BSNL in September 2013, as per which both BSNL and MTNL will be sharing infrastructure like buildings, mobile masts, international long-distance phone networks to provide joint services to corporate customers.

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