Date:22/06/2005 URL: http://www.thehindubusinessline.com/2005/06/22/stories/2005062202960500.htm

Back MTNL net down 18.3 pc; total dividend at 45%

Our Bureau

New Delhi , June 21

STATE-OWNED telecom major Mahanagar Telephone Nigam Ltd (MTNL) has reported an 18.38 per cent drop in its net profit for 2004-05 at Rs 938.97 crore.

The board of directors of the company has recommended a dividend of 45 per cent, including an interim dividend of 20 per cent.

MTNL's net income from services declined to Rs 5,592.38 crore, a drop of 12.19 per cent.

"MTNL is operating in the highly competitive markets of Delhi and Mumbai, and has implemented many tariff reductions to offer affordable services to its customers," said a press statement.

MTNL said it had performed well despite stiff competition from other operators and the downward revision of the access deficit charge. The company said other income had increased to Rs 491.71 crore in the 2004-05 fiscal, an increase of 56 per cent.

The income from mobile services went up by 53.70 per cent to Rs 287.04 crore during the year. MTNL has added 5,21,146 mobile subscribers, taking the subscriber base to 8,81,696.