BSNL Records Increased Net Loss of INR 1,482 Crore in Q2 Amidst Revenue Challenges
In the latest financial quarter, BSNL reports a higher net loss of INR 1,482 crore, attributing it to increased expenses and a consecutive decline in revenues. The state-owned telecom giant faces revenue challenges in multiple segments, including cellular, broadband, and enterprise services. Chairman PK Purwar outlines strategies for revenue growth, urging improved performance and quality of service. BSNL aims to turn profitable with the rollout of 4G services and ambitious revenue targets set by the government for the upcoming fiscal years.
Bharat Sanchar Nigam Limited (BSNL), the state-owned telecommunications company, has reported a net loss of Rs 1,482 crore in the July-September quarter, a slight increase from Rs 1,470 crore in the previous quarter, according to the company's standalone financial statements.
The higher sequential loss in the quarter is attributed to increased expenditures on advertising, business promotion, marketing, interconnect usage charges to other operators, higher revenue sharing with business partners, bad debt write-offs, and expenses related to construction contracts, among other factors.
However, on a year-on-year basis, BSNL's net loss has narrowed from Rs 2,033 crore in the corresponding quarter of the previous year. This improvement is mainly due to a reduction in employee benefit expenses, license and spectrum fees, finance costs, etc.
The company's revenue from operations declined by 5.1% quarter-on-quarter to Rs 4,071 crore, and on a year-on-year basis, it fell by 6.6%. For the half-financial year ending in September, BSNL's revenue showed a marginal increase to Rs 8,360 crore.
Notably, 14 out of 32 circles, including Haryana, Andhra Pradesh, Gujarat, Karnataka, Punjab, Sikkim, Tamil Nadu, Jammu and Kashmir, parts of North-East, Telangana, Andaman & Nicobar, and Chhattisgarh, reported a decline in revenue for BSNL during the quarter and the half-year ended in September.
Following the results, Chairman and Managing Director PK Purwar urged all circle heads to enhance their performance in the remaining half of the year. Circles with weak performance were specifically asked to share a detailed plan for improvement.
Purwar emphasized the potential for revenue generation in all existing services provided by BSNL, despite the ongoing rollout of indigenous 4G and 5G services. He urged all circles to focus on quality of service, customer service, and aggressive sales to achieve greater revenue growth in the second half of the financial year.
BSNL, which has been consistently losing mobile subscribers for the 20th straight month, attributed the decline in revenues to weak performance in cellular business, broadband, and enterprise segments. The company's subscriber base was reported at 95.8 million as of August end.
Despite challenges, BSNL has plans to commercially launch 4G services from December, with a target of a pan-India rollout by June 2024. The government has set revenue targets for BSNL at Rs 20,008 crore in FY24, Rs 24,428 crore in FY25, and Rs 28,476 crore in FY26. Chairman PK Purwar has expressed optimism about BSNL's turnaround, expecting it to achieve a net profit in the financial year 2026-27 with the implementation of revival packages.
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