VSNLs Q1 Net Nosedives 75 PC

Mumbai, July 30: | Updated: Jul 31 2003, 05:30am hrs
Tata-owned Videsh Sanchar Nigam Limiteds (VSNL) net profit has registered a sharp fall of 74.8 percent for the first quarter ended June 30, 2003 as compared to the corresponding period of the previous financial year. The companys net profit for the said quarter stands at Rs 65.8 crore against Rs Rs 261.12 crore for the first quarter ended June 30, 2002.

Total income for first quarter of the current financial year is at Rs 926.3 crore which is 35 percent lower than the Rs 1426.2 crore recorded for the same period of the previous financial year. In a press release, VSNL has said sales were lower due to continued pressure in tariffs in line with the competitive international long distance (ILD) business environment. Revenue from international telephony has fallen by a hefty 50.42 percent to Rs 590.1 crore from Rs 1190.3 crore for the first quarter of the previous financial year.

VSNLs ILD tariffs are today down to Rs 24 per minute for calls made to the US. The companys revenues from the other income category has increased by 69.3 percent to Rs 89.9 crore from Rs 53.1 crore.

Total expenditure for the first quarter has reduced to Rs 745.8 crore against Rs 995.2 crore for the first quarter of FY03. According to the press release, the companys leased channel business has grown during the quarter by 12.45 percent.

It may be recalled that the companys concluded its Voluntary Retirement Scheme (VRS) on July 14. In all, around 950 employees have signed up for it. Upto the end of June 30 this year, the total outgo on the VRS has been Rs 38.7 crore; there were 398 employees who opted for the VRS till the end of the first quarter of the current financial year. The company envisages an annual reduction in staff cost by Rs 35-40 crore as a result of the VRS states the press release.