VSNL Dips To 52-week Low

Mumbai, July 30: | Updated: Jul 31 2002, 05:30am hrs
The stock price of Videsh Sanchar Nigam Ltd (VSNL) slipped heavily on the bourses to touch its 52-week low following the firm’s disappointing quarterly performance.

On BSE, the stock of the Tata Group telecom carrier, closed at Rs 114.45, lower by 5.72 per cent than its previous close at Rs 121.40. A total number of 3,28,905 shares were traded on the counter. For the quarter ended June 30, 2002, VSNL posted a 28.5 per cent fall in its bottomline to Rs 261.20 crore, as against Rs 365.50 crore in the corresponding quarter last year. Net sales decreased by about 10 per cent to Rs 1,373.1 crore (Rs 1,528.3 crore).

Dealers said that the stock of the telecom major has taken a beating on the bourses today in light of its negative growth in both its topline and bottomline.

The fall in their bottomline can mainly be attributed to the decline in call tariffs and international settlement rates, VSNL having lost its monopoly on international telephony, they further added. Analysts were sceptical about the revival of the stock on the back of increasing competition from players like Bharti. There shall be a further decline in tariff rates and this shall have a negative impact on the revenues of VSNL, they added.