MUMBAI, May 26: The state-owned Mahanagar Telephone Nigam Ltd (MTNL) has posted a 20.73 per cent increase in its net profit to Rs 544.39 crore for the half year ended March 31 1998, up from Rs 450.89 crore during the same period last year. According to the unaudited financial results announced by the company, its total income went up from Rs 2,043.18 crore to Rs 2,404.52 crore, an increase of 17.68 per cent.While income from services during the period jumped 18.18 per cent to Rs 2,361.67 crore from Rs 1,998.25 crore, total expenditure went up by 20.52 per cent to Rs 1,229.83 crore from Rs 1,020.36 crore.
During the period, MTNL's interest burden came down substantially from Rs 68.81 crore to Rs 37.32 crore, a fall of 45.76 per cent. Also, its other income dipped marginally by 4.62 per cent from Rs 44.93 crore to Rs 42.85 crore. This was despite the fact that it received Rs 13 crore as interest on the funds raised through its successful global depository receipt (GDR) issue.
In December last year, MTNL,which provides basic telephone services in New Delhi and Mumbai, completed a successful GDR offering of 70 million shares at Rs 235 per share raising in the process $418 million. As a result, the government holding in the company came down from 65.73 per cent to about 55 per cent.
In February this year, the company's plans to provide cellular services in Delhi and Mumbai ran into rough weather with the Telecom Regulatory Authority of India (TRAI) invalidating its licence to provide the service.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
