**BSNL Reports ₹1,049 Crore Loss After Two Profitable Quarters**
Bharat Sanchar Nigam Ltd (BSNL), the state-owned telecom operator, has reported a net loss of ₹1,049 crore for the June quarter, marking a significant downturn after achieving profits in the previous two quarters for the first time in 18 years. This loss contrasts sharply with the profit of ₹280 crore recorded in the March quarter and ₹262 crore in the December quarter, as detailed in its financial statements.
The company’s revenue from operations experienced a 24% decline quarter-on-quarter, dropping to ₹5,029.6 crore, with decreases noted across all service segments, including consumer mobility, enterprise, and consumer fixed access. Despite a reduction in total expenses—down 9.4% sequentially to ₹6,840 crore—employee costs surged by 39% to ₹1,940 crore, accounting for a substantial 38.6% of BSNL’s revenue.
On a year-on-year basis, BSNL’s losses have narrowed from ₹1,542 crore in the same quarter last year, aided by a 14.5% increase in revenue from ₹4,392.6 crore, largely due to the rollout of 4G services at nearly 100,000 sites and competitive pricing. However, depreciation and amortization expenses rose by 43% year-on-year to ₹1,940 crore.
The communications ministry has expressed optimism for the upcoming year, anticipating strong revenue growth alongside a gradual decline in operating costs, which are essential for sustained profitability. However, they cautioned that increased depreciation and amortization from recent spectrum acquisitions and significant capital expenditures may impact short-term results.
BSNL’s mobile subscriber base stood at 90.46 million at the end of June, a slight decrease from 91.06 million at the end of March, but an increase of nearly 5.5 million compared to June 2024. Communications Minister Jyotiraditya Scindia emphasized the importance of customer satisfaction and growth in the subscriber base over mere profit metrics during a recent meeting with BSNL’s chief general managers.
In conclusion, while BSNL faces immediate financial challenges, strategic investments in infrastructure and services may pave the way for future growth and profitability.
**FAQ**
**What factors contributed to BSNL’s recent loss?**
BSNL’s recent loss of ₹1,049 crore was primarily due to a significant decline in revenue across all service segments and rising employee costs, despite a reduction in overall expenses.