Mumvbai, May 30: VSNL has reported a 39.50 per cent decline in its net profit at Rs 191 crore for the fourth quarter ended March 31, ’03, as against Rs 316 crore in the corresponding quarter last year. Net sales of the international long distance (ILD) telephony major dropped 44% to Rs 914.6 crore, compared with Rs 1,645 crore in the previous corresponding quarter. The company has announced a final dividend of Rs 8.50 (85%) for the year ended March 31, ‘03.

Revenues from ILD services, the company’s revenue mainstay, declined 53% to Rs 687 crore during the fourth quarter, from Rs 1,465 crore in the corresponding quarter last year. According to N Srinath, director (operations), VSNL, the drop in revenues was on account of lower settlement rates.
“The company handled a total of three billion minutes during the fiscal ended March 31, ‘03, which was the same as the previous year. The growth in volumes in the ILD market has gone to competition,” he said.
The company’s net profit for ‘02-03 has declined 44.5% to Rs 780 crore as against Rs 1,407 crore in the previous fiscal. Net sales fell 30% to Rs 4,538 crore, from Rs 6,508 crore. The company’s ILD revenues for the full year fell 35% to Rs 3,710 crore, compared with Rs 5,734 crore last year. The ILD sector was opened to competition in April ‘02. Bureau Report