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BSNL reduces net loss to Rs 5,367 crore in FY24; revenue slightly up

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In Short:

BSNL’s net loss decreased to Rs 5,367 crore in 2024 from lower expenses and higher income. Revenue grew marginally at 1% to Rs 19,343.6 crore, missing the Rs 20,008 crore target. Employee costs increased 4.4% to Rs 8,034 crore, accounting for a significant portion of total expenses. Cellular services revenue fell by 6% due to competition from private telcos, while broadband revenue increased by 9%. BSNL has hired BCG to work on a revival plan.

BSNL Net Loss Narrows to Rs 5,367 Crore in Fiscal Year 2024

The government-run telecom company Bharat Sanchar Nigam Limited (BSNL) reported a decrease in its net loss to Rs 5,367 crore in the fiscal year 2024, compared to Rs 8,161 crore in the previous year. This improvement was mainly attributed to lower expenses, particularly in finance costs, and an increase in non-operating income.

Financial Performance

BSNL’s revenue from operations showed a marginal growth of 1% to Rs 19,343.6 crore. However, this figure fell short of the Rs 20,008 crore target set by the government as part of the Rs 3.2 lakh crore mega revival package.

Revenue from cellular services and the enterprise segment declined in the fiscal year ending March 31, 2024. The company’s expenses also decreased by 2.5% to Rs 26,683 crore, with employee costs rising by 4.4% year-over-year to Rs 8,034 crore.

Business Segment Performance

BSNL’s revenue from cellular services, which accounts for 36% of its total revenue, decreased by 6% to Rs 7,006 crore. This decline can be attributed to subscriber churn to private telecom companies offering 4G and 5G services, which BSNL currently lacks. The enterprise business revenue also saw a decrease of 4.5% to Rs 5,090 crore.

On the other hand, revenue from the broadband business showed a positive growth of 9% to Rs 3,662 crore.

Strategic Partnership with BCG

BSNL recently entered into a partnership with America’s Boston Consulting Group (BCG) to develop a three-year revival plan aimed at competing effectively against top telecom incumbents. BSNL will be paying BCG Rs 132 for its advisory services.

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