MTNL's loss widens

Mumbai: State-owned MTNL Friday said its net loss have widened to Rs 1,374.4 crore for the quarter ended March 31, 2012 as compared to Rs 1099.57 crore in the corresponding period of last year.

The total income from operations, however, rose by about four percent to Rs 843.06 crore in the reported quarter from Rs 807.76 crore in the January-March quarter of 2011.

During the quarter, MTNL's revenues from basic services stood at Rs 670.83 crore, while that from cellular services was Rs 177.59 crore, it said in a filing to the BSE.

For the year FY12, the company's net loss stood at Rs 4,018.44 crore compared to Rs 2,801.91 crore in the last year,

The revenue also declined to Rs 3,368.99 crore versus Rs 3,673.95 crore during the last year.

Other income for FY12 stood at Rs 225.71 crore, reduced by Rs 92.32 crore mainly on account of decline in interest from banks and also reduced income of interest from income tax refund.

The employee remuneration and benefits touched Rs 3,709.3 crore during last financial year which is Rs 450.75 crore higher than in the previous fiscal.

The total employee cost includes provision for actuarial valuation of Rs 1,387.32 crore and actual payment of retirement benefits of Rs 478.62 crore, taking the total impact to Rs 1,865.94 crore on the expenditure book.

MTNL has over nine million mobile and wireline subscribers and offers services in two circles -- Delhi and Mumbai.

The company has decided to offer voluntary retirement scheme (VRS) to about 20,000 employees, as part of its efforts to turn profitable.

The company's scrip closed at Rs 22.70 on the BSE, down 0.66 percent from the previous close.

PTI