Mahanagar Telephone Nigam Ltd (MTNL) has informed BSE that its Chairman & Managing Director (CMD) AK Garg, retired from the company. Garg had joined MTNL in 2011 after serving as Director (Human Resources) at BSNL. He had over 36 years of experience in telecom, and before joining BSNL had served as the Chief General Manager at Kolkata Telephones.
It is not clear who will takeover the position from Garg, but there was a report late last year that the Director of finance, PK Purwar might be the one. However in March this year, there was another report about then communications minister Kapil Sibal being unhappy with the succession plans at MTNL.
When Garg joined MTNL, its revenues had witnessed a Year-on-Year decline of 15.7% and losses were at Rs 864 crore. At the of Q4 FY14, MTNL reported a profit of Rs 9,600 crore on account of an exceptional items totalling Rs 10,216.1 crore. Without the exceptional items, the company would’ve posted a loss of Rs 118.5 crore for the quarter as against Rs 976.8 crore loss in the previous quarter. This exceptional item along with lower employee retirement costs and the BWA spectrum refund in the previous quarter also bumped up the telco’s profits to Rs 8,322 crore for FY14 as against a loss of Rs 5,321.1 crore in FY13. The total revenue was at Rs 3,391.7 crore for the year, down from Rs 3,428.7 crore in the previous year.