MTNL posts net loss of Rs.605 crore in Q2

MUMBAI, INDIA: State-owned Mahanagar Telephone Nigam Ltd (MTNL) Wednesday reported a net loss of Rs.605 crore for the quarter ended Sep 30 as against the net profit of Rs.21 crore for the like period of last fiscal.

The operator attributed the loss to an increase in staff cost, including their wage revision and retirement benefits.

"Staff cost has increased in comparison with the corresponding period last year on account of wage revision implemented and accounted for in the fourth quarter of 2009-10 and thereafter," the company said in a regulatory filing.

The total income of the company for the quarter under review decreased by 2.28 percent at Rs.1,095 crore as against Rs.1,121 crore in the like period corresponding fiscal.

One time charges of Rs.11,098 crore on account of third generation (3G) and BWA (broadband wireless access) liability (over 15-20 years) has been held accountable for an amortisation sum of Rs.158 crore for the second quarter of financial year 2011, it added.

At the Bombay Stock Exchange the shares of the company declined 1.28 percent to Rs.69.60.