The unaudited results released on April 29 had put the total revenue at Rs 7,189.55 crore and the net profit at Rs 1,341.29 crore. The reason for the lower net profit is higher depreciation and increased provision for taxation (Rs 589.4 crore as against Rs 573.8 crore earlier).

According to a statement issued by the company, the net profit has grown by 36.9 per cent over 1997-98 and the earning per share has gone up from Rs 101.88 to Rs 139.47 in 1998-99.

The company has seen a 15 per cent jump in the amount of telephone traffic handled by it which was at 1,935 million minutes leading to a revenue generation of Rs 2,045 crore. Interestingly, the non-telephony revenue hasgrown 78 per cent to Rs 477.33 crore, which is now 23.4 per cent of the company's telephony revenues.

In 1998-99, VSNL had a capital expenditure of 761.62 crore as against Rs 407.8 crore in the previous fiscal. Another Rs 5,000 crore would be incurred in the next three years.

The leased line business of VSNL has grown 30.7 per cent to Rs 246.6 crore, but it is the Internet business which has seen a stunning growth of 208.9 per cent to Rs 173.30 crore.

The company release said that following the declaration of the unaudited results, the scrip has seen an upward spiral. The GDR has increased to $13 from a level of $9.75 while the domestic stock has gone up to Rs 875 from levels of Rs 600 around April-end.

The number of Internet connections with VSNL now stand at 2,60,000. Among the new projects being commissioned is the laying of the SEA-ME-WE3 cable which is now complete and technical commissioning of which, is expected later this month.