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VSNL posts a 11% increase in net profit

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CIOL Bureau
New Update

BANGALORE: Videsh Sanchar Nigam Ltd. (VSNL) has announced a 11 per cent increase in net profit for the third quarter ended December 31 at Rs 298.40 crore, compared to Rs 268.40 crore in the same period last year.

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Net sales slipped by two per cent to Rs 1,662.8 crore from Rs 1,697.1 crore last year. Other income also saw a drop to Rs 19.1 crore from Rs 32.6 crore last year. Total income was down by 2.76 per cent at Rs 1,681.90 crore from Rs 1,729.70 crore last year. Total expenditure (including prior year) amounted to Rs 1,224.20 crore from Rs 1,311.90 crore last year.

Gross profit after interest but before depreciation and taxation amounted to Rs 457.70 crore from Rs 417.80 crore last year, with gross profit (excluding other income) amounting to Rs 438.60 crore up from Rs 385.20 crore last year.

Depreciation stood at Rs 19.90 crore against Rs 20.40 crore and provision for taxation at Rs 139.40 crore from Rs 129 crore last year. Net profit for the nine months ended December 31 showed a marginal decrease at Rs 1,000 crore, compared to Rs 1,000.4 crore during the same period earlier. Total income for the same period also dropped to Rs 5,250.60 crore from Rs 5,274.90 crore.

According to a press release, gross sales for the quarter ended December 31 are on the basis of proposed revised total accounting rates (TAR) which are approximately 10-14 per cent lower than the TAR applicable for the corresponding period the previous year. Internet revenues have increased 112 per cent from Rs 23.74 crore to Rs 50.06 crore and the number of Internet subscribers have increased from 1,82,512 to 3,22,956. Income from value-added services increased to Rs 456 crore from Rs 321 crore, the release said.

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