Mahanagar Telephone Nigam Limited (MTNL) is trading down 4% at Rs 63 after the company's net losses in the quarter ended March 2010 rose almost twenty-two fold.
The public sector undertaking telecom company has posted a net loss of Rs 1,574 crore for the quarter ended March 31, 2010 compared to a net loss of Rs 73 crore for the quarter ended March 31, 2009. Total income has increased from Rs 1,344 crore for the quarter ended March 31, 2009 to Rs 1,620 crore for the quarter ended March 31, 2010.
On a full year basis, the company has turned into the red by reporting a net loss of Rs 2,515 crore for FY10 as against a net profit of Rs 212 crore in FY09. Total income has decreased from Rs 5,250 crore to Rs 4,905 crore during the fiscal.
The costs have increased due to a wage revision with effect from 01.01.2007. Staff costs, other than retirement benefits, have risen by 157% to Rs 1,130 crore (Rs 439 crore) in the quarter and 48% to Rs 2,136 crore (Rs 1,439 crore) during the fiscal.
The stock opened at Rs 65 and is currently trading at the lows of the day. Around 419,408 equity shares changed hands on the NSE counter thus far.
