23.1 C
New Delhi
Thursday, November 14, 2024

BSNL’s net loss decreases to Rs 5378 crore in FY24

More from Author

In Short:

State-run telecom operator BSNL reported a net loss of Rs 5,378 crore for FY24, improving from Rs 8,116 crore in the previous year. Despite revenue growth to Rs 19,330 crore, BSNL fell short of the government’s revenue target. With a decrease in total expenses and increase in employee costs, BSNL’s cellular revenue declined due to loss of subscribers. BSNL aims to improve profitability with the help of BCG.




BSNL Reports Net Loss Narrowing to Rs 5378 Crore

bsnl net loss narrows to rs 5378

Financial Performance:

Bharat Sanchar Nigam Limited (BSNL) has reported a net loss of Rs 5378 crore for the year ending March 31, 2024. The state-run telecom operator saw its revenue from operations growing by a percent YoY to Rs 19,330 crore. The net loss has narrowed quite significantly as for FY23, BSNL reported a net loss of Rs 8116 crore. It is worth noting here that the government had set an operating revenues target of Rs 20,008 crore for the year, which the telco couldn’t achieve.

Expense Analysis:

Total expenses for BSNL fell by 2.5% to Rs 26,683 crore. However, at the same time, the employee cost rose by 4.4% to Rs 8,304 crore. Employee costs accounted for 31.1% of the total expenses. Revenue from cellular service fell by 6% to Rs 7,006 crore. The decline in revenue from cellular services can be attributed to the loss of subscribers.

Business Outlook:

BSNL is in the process of launching 4G networks. The broadband business of BSNL is thriving with revenues rising 9% to Rs 3,662 crore. The demand for fixed-line broadband services is increasing due to the need for reliable internet.

For FY25, the company has revenue targets of Rs 24,428 crore and for FY26 it is Rs 28,476 crore. To achieve these targets, BSNL needs to address subscriber losses to private telcos and focus on growth in non-mobility services. BSNL has engaged BCG (Boston Consulting Group) for 34 months to assist with revival plans for which it will pay Rs 132 crore.



- Advertisement -spot_img

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

- Advertisement -spot_img

Latest article