MTNL’s share price jumped 9.7% to an intra-day high of Rs 57.50 after the Government approved a capital expenditure of Rs 6,000 crore to boost 4G expansion in India.
The government has decided to strengthen the public sector companies- BSNL and MTNL by approving an additional Rs 6,000 crore for scaling their 4G expansion projects in India, reported Moneycontrol citing sources.
In a Cabinet Meeting on Friday, the government approved funding of Rs 6000 crore for BSNL. BSNL is accelerating its 4G rollout in India.
MTNL had finalised a deal with BSNL a few months back to roll out 4G services for its users. MTNL aims to enhance its network services, offering improved 4G connectivity to its customer base, under a 10-year agreement.
BSNL needs to spend around Rs 19,000 crore for the project. It has spent approximately Rs 13,000 crore so far and approached the Department of Telecommunications for the remaining Rs 6,000 crore.
Apart from that, the company is yet to report its quarterly results for the third quarter of FY25.
MTNL in Q2
The company reported a net loss of Rs 890.3 crore for the second quarter Q2 FY25. The company recorded a net loss of Rs 773.5 crore in the April-June quarter. In the second quarter, total revenue stood at Rs 174.2 crore during the second quarter of FY25, down 5.3% against Rs 183.9 crore in the corresponding period.
MTNL Vs Nifty 50
The share price of MTNL has risen more than 19% in the past five trading days and gave almost similar returns in the last one month. However, the share price of MTNL has fallen around 15% in the last six months. It has given a return of over 24% in the last one year. The stock has fallen almost 45% from its recent peak, which it climbed in July 2024.
To compare, the benchmark index, Nifty 50 has declined by 0.28% in the last five trading days. The index has given a return of 0.07% in the last one month. It has fallen 3.7% in the past six months. The index has increased by 8.5% in the previous one year.