Bharat Sanchar Nigam Limited (BSNL) has reported a net loss of Rs 5378 crore for the year ending March 31, 2024. The state-run telecom operator saw its revenue from operations growing by a percent YoY to Rs 19,330 crore. The net loss has narrowed quite significantly as for FY23, BSNL reported a net loss of Rs 8116 crore. It is worth noting here that the government had set an operating revenues target of Rs 20,008 crore for the year, which the telco couldn't achieve.
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Total expenses for BSNL fell by 2.5% to Rs 26,683 crore. However, at the same time, the employee cost rose by 4.4% to Rs 8,304 crore. Employee costs accounted for 31.1% of the total expenses. Revenue from cellular service fell by 6% to Rs 7,006 crore. The decline in revenue from cellular services can be attributed to the loss of subscribers. BSNL has not been able to retain or add new subscribers due to a lack of high-speed network services.
The state-run telcom telco is still in the process of launching 4G networks. However, the broadband business of BSNL is doing great. The revenues from broadband business rose 9% to Rs 3,662 crore. The demand for fixed-line broadband services is going up every year as the need for reliable internet increases.
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For FY25, the company has revenue targets of Rs 24,428 crore and for FY26 it is Rs 28,476 crore. However, that won't happen if the telco keeps losing subscribers to the private telcos. Also, the revenue from non-mobility services has to grow significantly for BSNL to be able to achieve profits. Much recently, the state-run telco has roped in BCG (Boston Consulting Group) for the next 34 months to help with the revival plans. For this, BSNL will pay Rs 132 crore to the US firm and will take its advise on sales and marketing front as well.
