BSNL's profits dip 76% in 2002-03

 Bharat Sanchar Nigam Ltd (BSNL) reported a 76 per cent dip in its profits to Rs 1,444 crore in 2002-03. However, its revenue was up 5 per cent to Rs 25,892 crore.

 The company, which held its annual general meeting, also approved a dividend of Rs 250 crore for the last financial year.

 The sharp dip in profits is largely on account of a 85 per cent increase in salaries and wages to Rs 6,300 crore in 2002-03, from Rs 3,400 crore in the previous year.

 Employee costs went up on account of leave encashment of about Rs 1,100 crore and a pension contribution of Rs 600 crore. BSNL also had to set aside Rs 1,594 crore as deferred tax.

 That apart, BSNL paid Rs 3,000 crore as licence fee, of which Rs 800 crore was yet to be reimbursed by the government.

 The company, which had reported a profit of over Rs 6,000 crore in 2001-02, said it was formulating a voluntary retirement scheme (VRS) package to cut down its work force.