BSNL reports profit of Rs 262 crore in third quarter, first in 17 years
NEW DELHI: State-owned Bharat Sanchar Nigam Limited (BSNL) on Friday reported a net profit of Rs 262 crore in the third quarter ending December 2024. This marks the first time the telecom service provider has turned profitable since 2007.
For nearly two decades, BSNL struggled with declining subscriber numbers and operational losses, largely due to intense competition from private telecom service providers in the country. However, the government intervened with a nearly Rs 3,22,047 lakh crore relief package over the past three years, providing a much-needed lifeline to the ailing telco. Communication minister Jyotiraditya Scindia said this is an important day in the journey of India’s telecom sector.
“BSNL, a government-owned telecom service provider, has posted a quarterly profit of close to Rs 262 crore for the first time in 17 years,” said Scindia.Robert J Ravi, Chairman and MD of BSNL, attributed this growth to the company’s focus on innovation, customer satisfaction, and aggressive network expansion.
BSNL expects revenue growth to improve further, exceeding 20% by the end of the financial year. Revenue from Mobility, FTTH, and leased lines has increased by 15%, 18%, and 14%, respectively, over Q3 of the previous year. Additionally, BSNL has successfully reduced its finance cost and overall expenditure, leading to a decline in losses by over Rs 1,800 crore compared to last year. Despite this positive development, the government has infused significant capital to support the ailing telco. BSNL and Mahanagar Telephone Nigam Ltd (MTNL) have received another relief package worth Rs 6,000 crore for the expansion of their 4G rollout plans. This is the fourth revival package from the government, totaling Rs 3,22,047 crore so far.
The first revival package for BSNL/MTNL, approved in 2019, totalled Rs 69,000 crore. In 2022, the government approved an additional Rs 1.64 lakh crore to provide financial support for capital expenditure, viability gap funding, and debt restructuring. In June 2023, Rs 89,047.82 crore was infused for the allocation of 4G/5G spectrum through equity infusion. However, despite these relief packages, BSNL has seen a major drop in its customer base. In December 2024, nearly 8 lakh subscribers ported out to other networks, while only 3 lakh new subscribers joined the network.