According to the unaudited annual results, total revenue increased by 21.01 per cent to Rs 6,395.90 crore from Rs 5,285.30 crore. Total expenditure went up from Rs 4,437.60 crore to Rs 5,033.20 crore, an increase of 13.42 per cent.

While income from operations went up by 17.63 per cent to Rs 6,129.70 crore from Rs 5,210.60 crore, other income shot up by a whopping 256.22 per cent to Rs 266.10 crore from Rs 74.70 crore, which according to the company, is a direct fall out of the sharp depreciation of the rupee during the year.

VSNL has drawn up an ambitious $1.4 billion investment programme till 2002 which will be part funded through the GDR proceeds, internal accruals and debt. While $229 million will be invested in 1998, the amountwill increase to $386 million during 1999. Another $288 million is expected to be invested during 2000 with $297 million in 2001 and the rest $196 million in 2002.

According to the company, 40 per cent of the money will be invested in improving and creating new transmission systems that will not only improve its present services but also help it entering new areas like domestic long distance services.

VSNL's volume of telephone traffic during the year increased by a healthy 21.23 per cent to 167.90 crore paid minutes from 138.50 crore paid minutes a year ago. Net revenue per minute increased from Rs 9.96 to Rs 10.26. At the same time, its incoming to outgoing call ratio increased from 2.60 to 2.98 thus increasing the pressure on VSNL to reduce settlement rates with other international carriers.

Basic telephony continued to remain the contributor to the company's revenue accounting for about 95 per cent of its income with specialised services making up the rest. However, revenues from value-addedservices increased by 64.16 per cent to Rs 270.7 crore.