BSNL FY06 net decline likely; plans Rs 17,000 cr capex

Bharat Sanchar Nigam (BSNL) has indicated a decline in net profit in FY06. The company expects gross revenues of Rs 39,500 crore and net profit of less than Rs 10,000 crore in FY06. This apart, the company has announced a capital expenditure of Rs 16,000 crore-Rs 17,000 crore for this year.

A K Sinha, chairman & managing director of BSNL, said: "In 2004-05, our gross revenues were Rs 36,000 crore and net profits were slightly over Rs 10,000 crore. Though the numbers for FY06 are still being calculated, we expect gross revenues of Rs 39,500 crore and net profits of less than Rs 10,000 crore, thus indicating a pressure on profits."

BSNL has planned a capital expenditure of Rs 16,000 crore-Rs 17,000 crore for this year on increasing its mobile phone connections and broadband connections among others. "We plan to add two million broadband connections this year and three million in 2007-08," Sinha said.

The telecom service provider also plans to connect 14,000 villages in the country with satellite phones at an investment of Rs 150 crore. BSNL will also be rolling out services for triple play in the next 2-3 months starting with Chennai and Pune. Besides, it plans to install three million connections for wireless in local loop this year.

Meanwhile, with regard to its tender for 60 million mobile phone lines, Sinha said that the allotment would be done in the next 2-3 months. "The actual roll-out will begin in January or February 2007," he added.