State run telecom service provider Mahanagar Telephone Nigam Limited (MTNL) has announced financial results for the quarter ended 3oth September 2011 (Q2-FY12). The company’s total income for the quarter saw a decrease of year on year, closing at Rs 896.40 crore in comparison to Q2-FY11’s Rs 1063.3 crore.
Net loss for MTNL for Q2-FY12 was Rs. 864.1 crore, compared with Rs. 850 crore loss, it posted during the previous quarter, and a loss of Rs.604.5 crore for the same quarter last 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 Q2FY12 was Rs 679.66 crore, a decline compared to Rs 900.94 crore that it earned during the same quarter, last year. The company incurred a loss of Rs 488.4 crore from basic service operations.
MTNL’s cellular services generated revenues of Rs 187.75 crore during Q2FY12, an increase compared to Rs 161.71 crore that it generated in Q2FY11. 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. MTNL incurred a loss of Rs 74.6 crore from its mobile services operations.
– MTNL had accounted for Rs 301.4 crore during the previous year towards wet lease for infrastructure and other services provided for the Common Wealth Games, of which Rs 43 crore is subject to acceptance and final settlement. A claim of Rs 41 crore has not been booked subject to final acceptance and settlement.