State run telecom service provider Mahanagar Telephone Nigam Limited (MTNL) has announced financial results for the quarter ended 31st March 2011. The company’s total income for the quarter saw a decrease of 5% year on year, closing at Rs 855.01 crore in comparison to Q4-FY10’s Rs 900.22 crore, and a sequential decline of 7%. Net loss MTNL for for Q4-FY11 was Rs. 1099.5 crore, compared with Rs. 671.04 crore loss the previous quarter, and a loss of Rs. 1573.7 crore for the same quarter last year.
On an annual basis, MTNL’s total earnings (unaudited) increased by 1.59% to Rs 3841.21 crore from Rs 3781 crore, for the year ended 31st March 2011. The company registered a net loss of Rs 2826.95 crore during the year, compared to last year’s losses of Rs 2610.97 crore.
The loss is being attributed to one time charges on account of 3G spectrum and BWA liability of Rs.11097.97 crore, for which Rs. 157.61 crore has been amortized for the quarter ending 31st march 2011. An amount of Rs. 301.48 crore is accounted for by MTNL “towards wet lease for infrastructure and other services provided by MTNL in respect of Commonwealth Games”. Rs 242 crore has been received by MTNL during the last financial year.
MTNL offers basic landline, broadband and cellular services in the two cities of Delhi and Mumbai. MTNL’s major share of revenue comes from basic services. The company’s income from basic services during Q4FY11 was Rs 655.03 crore, a decline compared to Rs 699.55 crore that it earned during the same quarter, last year. The total income from basic services for FY11 as a whole was Rs 3117 crore, an increase from FY10’s income of Rs 3003.5 crore.
MTNL’s cellular services generated revenues of Rs 158.1 crore during Q4FY11, a decrease compared to Rs 183.9 crore that it generated in Q4FY10. On an yearly basis the revenue declined from FY10’s Rs 705.5 crore to Rs 648.8 crore. MTNL was the first telco, along with BSNL to offer 3G services. It offers 3G data at the lowest tariffs in the cities where it offers services, at the time of writing this post. Note that MNP or mobile number portability was launched in Q4FY11.
– MTNL Q3 FY11 Results: Net Loss Up By 11%