MTNL reports Rs605-crore Q2 net loss

03 Nov 2010

Mahanagar Telephone Nigam Ltd (MTNL) today reported a net loss of Rs604.89 crore for fiscal second quarter ended 30 September 2010, against a net profit of Rs21.30 crore in the quarter ended 30 September 2009.

Total income of the state-owned telecom major decreased to Rs1,095.24 crore during the quarter ended 30 September 2010 from Rs1,120.80 crore during the quarter ended 30 September 2009, unaudited results released by the company showed.

Results for the quarter were impacted due to higher expenses of Rs783.30 crore, compared with Rs460 crore in the year-ago quarter, toward staff costs, including retirement benefits, and a higher interest provision of Rs143.89 crore for the quarter, MTNL said.

MTNL said its 'other operating income' was down at Rs9.73 crore against Rs25.29 crore in previous-year quarter.

'Other income' during the quarter also stood lower at Rs31.89 crore against Rs138.37 crore in the year-ago quarter.

Revenue from `basic services' rose 14 per cent to Rs900.94 crore from Rs789.41 crore in the previous-year quarter, while revenue from cellular segment dropped 10 per cent to Rs161.72 crore from Rs179.04 crore in the year-ago quarter.

For the half-year, the company reported a net loss of Rs1,056.33 crore, against a net loss of Rs20.95 crore in the first half of the previous financial year.

Shares of the company declined Rs0.9, or 1.28 per cent, to settle at Rs69.60. Total volume of shares traded was 637,308 on the BSE.