VSNL net jumps 38

MUMBAI, APRIL 29: Videsh Sanchar Nigam Limited VSNL has posted a 38 per cent rise in net profit at Rs 1341 crore on a revenue of Rs 718...

MUMBAI, APRIL 29: Videsh Sanchar Nigam Limited VSNL has posted a 38 per cent rise in net profit at Rs 1341 crore on a revenue of Rs 7189 crore for the financial year 1998-99. The revenue represents a 11.7 per cent growth over last year8217;s figures. Earnings per share stood at Rs 141.19 as compared to Rs 101.18 the previous year.

Value-added services contributed Rs 491.90 crore to the total revenue posting a 71 per cent increase over last year8217;s figures. The growth was spurred by a massive 151 per cent jump in internet business.

The international carrier saw increased overseas traffic of 1,935 million minutes in 1998-99 as compared to 1,685 million minutes a 14.84 per cent growth. The traffic in the last quarter ending March 31, 1999 was 519.56 million minutes as compared to 437 million minutes for the corresponding period of the previous year, an 18.89 per cent growth.

quot;The growth in net profits by 38.5 per cent against a sluggish economic scenario reflects the improving performance of the company withincreasing efficiencies,quot; VSNL acting chairman and managing director Amitabh Kumar said in a statement, quot;The results also reflect the outcome of our diversification efforts from pure ISD revenues. Revenues from internet, leased line and other services add up to Rs 473 crore in 1998-99 exhibiting a growth of 72 per cent over the previous year.quot;

The VSNL board also approved an investment of 50 million each in the satellite phone project of Afro-Asian Satellite Communications and in the South Africa Far East SAFE cable system to be commissioned towards the end of next year. Both investments will help VSNL to enhance its network and diversify into provisioning of services. It also signed an MoU for Project Oxygen, a global fibre optic cable network with landing points in 74 countries, in July 98.

The company is offering uplinking to satellite channels Sun, Surya, Udaya, Eenadu and Gemini channels uplinking through its earth stations located at Chennai and New Delhi through Intelsat satellite system andhas set up two dedicated earth stations for uplinking facilities. It also commissioned gateways at Ernakulam and Jalandar and Gandhinagar taking the total number of gateways to seven.

On the outlook for 1990-2000, Kumar said the reduction in ISD rates would lead to an increase in outgoing traffic in India and improvement in incoming to outgoing ratios. quot;The opening up of the ISP policy is also leading to considerable demand for international bandwidth from new ISPs,quot; he said.