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This is an archive article published on April 11, 2006
BSNL pegs revenue loss at Rs 2,000 cr
BSNL will lose Rs 2,000 crore to the drop in tariffs, lower Access Deficit Charge receipts and the government8217;s refusal to refund as much license fees as the telecom giant wants.
Written by Ensenseconomicbureau
New Delhi | April 11, 2006 12:00 AM IST
2 min read
2 min read
BSNL will lose Rs 2,000 crore to the drop in tariffs, lower Access Deficit Charge ADC receipts and the government8217;s refusal to refund as much license fees as the telecom giant wants.
BSNL has also decided to hold back on a stock exchange listing, on the advice of bankers. Investments by the company, however, will continue unabated as Rs 17,000 crore have been lined up for 2006-07. 8216;8216;Net profit may dip 20 per cent due to lower ADC, lower reimbursement of license fees and falling tariffs,8217;8217; said BSNL CMD A.K. Sinha on Monday.
The company8217;s net profit may be at around Rs 8,000 crore in 2005-06, if it maintains the income rate of growth as the previous year. It registered a net profit of Rs 10,000 crore in 2004-05.
BSNL8217;s gross income went up 9 per cent Rs 39,500 crore from Rs 36,000 crore in the previous fiscal according to provisional figures for 2005-06 released today. In 2005-06, BSNL pegged the license fees reimbursed and ADC at a total Rs 3,600 crore.
Asked by when the company would be ready to hit the capital market, S.D. Saxena, Director Finance, BSNL said: 8216;8216;The government has been writing to us. We have taken advise from bankers and they have suggested that this is not an appropriate time to go for an IPO . We need 12 to 18 months to clean up our accounts.8217;8217;
BSNL was about to appoint an advisor for its IPO and had invited bids from bankers, but the government now seems to have decided not to sell its shareholding in the mini-navratna.
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