MTNL posts lower net sales

BANGALORE: Mahanager Telephone Nigam Ltd. (MTNL) has registered a profit after tax (PAT) of Rs 364.20 crore in the third quarter ended December 31, 1999, an increase of seven per cent against the corresponding period last year.

Net sales were lower at Rs 1,218.97 crore as against Rs 1,306.88 crore last year, recording a drop of 6.7 per cent. The profit after interest but before depreciation and tax (PBDT) stood at Rs 579.58 crore against Rs 664.99 crore last year. The net profit for the nine-month period ended December 31, 1999 amounted to Rs 1,012.20 crore against Rs 1015.40 crore last year, on net sales of Rs 3,702.97 crore against Rs 3,910.57 crore in the corresponding period last year. The PBDT dropped to Rs 1,831.58 crore from Rs 2,009.77 crore last year.

The company has pointed out that "a negative impact of tariff re-balancing, effective from May 1999 appears to have been neutralized." It also projected a better picture for the next quarter on the assumption that new connections to be provided during the period will generate additional revenues.

The metered call units have registered a positive growth rate in November or December 1999, by around eight per cent in Mumbai and one per cent in Delhi. The complete neutralization of the negative impact of tariff re-balancing topped with increase in registration for new telephone connections, which has been around three lakh, both in Mumbai and Delhi, is likely to improve revenues in Q4 as MTNL is ready to provide new connections.