Government telecom company Bharat Sanchar Nigam Limited (BSNL) has created history. In the fourth quarter (January to March) of FY 2024-25, the company recorded a net profit of 280 crores. Earlier in the third quarter, BSNL also made a profit of 262 crores. This is the first time BSNL has made profits in two consecutive quarters. The company had a loss of 849 crores in the same quarter of FY24.
4G rollout changed picture
The biggest reason behind this turnout of BSNL has been its 4G service launch. Mobile services have increased a tremendous increase in the company’s earnings. Ftth (Fiber to the Home) has also recorded a 10 per cent gains, while enterprise services have grossed 4,096 crores.
Still annual deficit, but decreased heavy
Although the company incurred a total loss of 2,247 crores in FY25, this deficit in FY24 was 5,370 crores. That is, there has been a decrease of about 58 percent in the deficit. The credit is being given to better expenditure control, operational efficiency and government support.
Record investment and boosted earnings
BSNL made a capital investment of more than 26,000 crores in FY25. It engaged 15,000 crore in equipment and tower and 10,000 crore spectrum purchases. More than 98,000 4G towers have been installed. At the same time, the company is now testing 5G – trials have started in cities like Jaipur, Lucknow, Bhopal, Kolkata, Patna, Chennai.
Tremendous improvement in ebitda margin
The company’s Ebitda FY25 stood at 5,396 crore, which was 2,164 crores last year. That is, more than double. The Ebitda margin also increased to 23.01 percent, which was 10.15 percent last year. Now 27 telecom circles have become ebitda positive, out of which 10 have also earned net profit.
What did the minister and management say?
Telecom Minister Jyotiraditya Scindia tweeted, “BSNL has made a consecutive profit in 17 years. This is the success of Prime Minister Narendra Modi’s leadership.” BSNL managing director Robert J Ravi said, “BSNL is not just coming back, she is defining herself. We will not run behind the profit, but if they provide good service, then the profit will come ourselves.”
Will the profits remain in future too?
However, the company has warned that due to spectrum expenses and amortization in the coming time, the profits may be slightly reduced. Nevertheless, the company expects good profits in mid and long -term with the help of indigenous expansion of 4G and 5G, investment in infrastructure and new services.
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