VSNL's profit zooms 87 p.c.

Videsh Sanchar Nigam Limited (VSNL), the country's premier internet service provider and exclusive provider of international telecommunication services, has increased its net profit by 87 per cent in the year ended March 31, 2001 (unaudited) to Rs. 1,577.60 crores from Rs. 840.30 crores. The internet subscriber base grew to 6.31 lakh during the year from 3.66 lakh on March 31, 2000.

The company handled 2,694 million minutes of international telephony traffic during the year, an increase of 20 per cent. The leased data circuits (64 kpbs and above) increased to 4,916 from 1,634 in the previous year.

Total revenue grew by 8 per cent to Rs. 7876.50 crores from Rs. 7,323,70 crores. The profit before tax was Rs. 2,391 crores (Rs. 1,990.50 crores). Taxation claimed Rs. 808.20 crores (Rs.637.50 crores).

Commenting on the results Mr. S. K. Gupta, Chairman and Managing Director of VSNL has stated in a press release that the company had once again demonstrated allround impressive performance which was reflected in traffic growth as well as growth in other value added services. VSNL had been able to achieve this in spite of increasing competition and substantial reduction in tariffs in respect of its valued added services during the year.

To further its goal of bringing global communication facilities and convergence technology to every corner of India, VSNL has reduced the cost of its services by 40 per cent at stations serviced terrestrial or satellite leased line links. This is in line with 70 per cent reduction it has offered on leased line tariffs in Mumbai and Kochi. It has also reduced and rationalised tariff for web hosting and co-location, to customers using VSNL servers.

Commenting on VSNL's position in the new era of privatisation, Mr. Gupta said ``VSNL has started looking beyond its role as the Government licensed sole-provider of international telephony. VSNL has long term plans to add value to the investors, who have reposed faith in the company. It also has the inherent strengths born out of strong cash reserves to invest in many of its projects, without having to borrow from the market.''

SSI

SSI has reported a sharp increase in its net sales and income from operations to Rs. 103.72 crores in the third quarter ended March 31, 2001 from Rs. 53.45 crores in the same period last year. Other income accounted for Rs. 1.76 crores (Rs. 50.31) lakhs. The net profit before taxation and extraordinary and non- recurring items has risen to Rs. 22.60 crores (Rs. 12.80 crores) during the period.

There is no provision towards extraordinary and non-recurring items during the quarter while taxation claimed Rs. 4.99 crores (Rs. 2.30 crores). The net profit after taxation is Rs. 17.60 crores (Rs. 10.50 crores).

In the nine months ended March 2001 net sales and other income were Rs. 320.68 crores (Rs. 130.03 crores) and the net profit after taxation Rs. 70.27 crores (Rs. 26.01 crores).

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