Shares in MTNL hit a high of Rs 128.75 on Tuesday before closing at Rs 126.50, up by 3.74 per cent. More than 23.44 lakh shares changed hands on the BSE.
MTNL recently said that it plans to invest Rs 1,200 crore during 2003-04 for developing its telecom backbone and infrastructure, including a CDMA network.
The investment is meant to develop its infrastructure in two circles, New Delhi and Mumbai. The company had earlier announced plans to expand its GSM mobile (Dolphin) and CDMA mobile (Garuda) services in Mumbai and New Delhi.
During the first quarter ended June 30, 2003, MTNL posted a 0.3 per cent increase in net profit at Rs 250.60 crore (Rs 249.87 crore) on a 0.2 per cent rise in total income at Rs 1,537.91 crore (Rs 1,535.22 crore).