BSNL Expecting Stable Revenues in FY17 Despite Tough Competition from Private Operators

Bharat Sanchar Nigam Ltd (BSNL) is expecting stable revenues from its operations for 2016-17. The state-owned operator is expected its revenue to be flat Rs. 28,477 crores, despite a tough year of intense competition from private players, says a report from PTI.

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BSNL Chairman and Managing Director Anupam Shrivastava said to the publication that “BSNL is in the midst of finalising its numbers for the financial year ended March 2017 based on Indian Accounting Standards (or Ind-AS) and also parallelly reconciling the corresponding figures for FY16.”

The audited numbers and board approvals are expected to receive by the end of November or early December. “As of now, the full details have not come, but what we know is that revenue from operations is Rs 28,477 crore for FY17 and Rs 28,449 crore for FY16,” Shrivastava told PTI.

He said that the”full year top line numbers were buoyed by the performance across segments like mobile, broadband and enterprise.”

“Overall, the year FY17 was a tough year because of stiff competition. But while the revenue of most operators came under pressure, we have been able to sustain the same level with a slight increase,” Shrivastava added.

Further, when asked if BSNL will be able to reduce its losses for the full fiscal 2016-17, the top officer responded that the figures are still being worked out. However, he was not confident on whether will BSNL show up positive EBITDA for FY17. For the unaware, EBITDA stands for earnings before interest, tax, depreciation and amortisation, which measures a company’s operational performance.

BSNL reported losses for four years since 2013. The government-owned PSU reported a loss of Rs. 7,019 crore in 2013-14, and Rs. 8,234 crore in 2014-15. However, the company managed to halve the losses to Rs. 3,880 crore in 2015-16. And is now expecting the revenues to be at Rs. 28,477 crores for 2016-17.

While the company has been posting no profits over the years, the revenue has constantly been increasing since 2013-14. For example, BSNL posted a revenue of Rs. 26,153 crore in 2013-14, followed by a slight increase of Rs. 27,242 crore in 2014-15, and Rs. 28,449 in 2015-16.

BSNL’s aggressive tariff plans are the primary reason for the company to expect a stable revenue in 2016-17. The company has been matching Reliance Jio in every aspect possible to gain subscribers and retain the market share.

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8 Comments on "BSNL Expecting Stable Revenues in FY17 Despite Tough Competition from Private Operators"

 

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Sumanth
August 20, 2017 7:13 am 7:13 AM

If only BSNL increases its network density properly parallel to launching multiple plans….

S Gopal
August 23, 2017 6:55 am 6:55 AM

Yes, they need to increase their network density and upgrade as many 2G BTS to BTS that are H+ capable. They should aim to provide at least H+ coverage in all of their circles otherwise the gap between other operators 4G services and their exisitng 3G services appears huge.

Sandeep
August 19, 2017 8:24 pm 8:24 PM

Last week i got message from BSNL that today there is a special camp to link aadhar number to mobile number. When i went there to bsnl office. There was one old man sitting with one finger print scanner surrounded by 30 ppl and for each one it took 15 mins to link. I thought very nice special camp arranged by bsnl and went to Airtel store and did MNP of my bsnl number

S Gopal
August 23, 2017 6:41 am 6:41 AM
Congratulations! You actually found a BSNL Customer Service Centre employee working and assisting customers, that indeed is a good sign for in many Customer Service Centres of BSNL the staff are notorious in playing hide and seek. So old is not gold for you? Poor old man, he was working, assisting customers and yet that was not appealing and attractive enough. You could have patiently waited unless there was a jamboree and you did not know when your turn will ever come. Unless you are a celebrity, Aadhaar linkage needs to be done at operators Customer Care Centres or at… Read more »
SANJIB BANERJEE
August 18, 2017 7:21 pm 7:21 PM

Jio , Jio , Jio…. Why ??? Jio total debt approx 50k cr within 12 months of commercial activity.

Increase debt and I posted profit in account is not a good idea..

Sunny | Lucknow
August 18, 2017 11:08 pm 11:08 PM

Hahaha Mr.Economist you have no clue. Jio is very comfortably placed when debt is concerned, why don’t you talk about AVOID who are drowning neck deep in a sea of debt lol.

S Gopal
August 23, 2017 6:05 am 6:05 AM
We should not indulge in moments of schadenfreude for if the group of operators( mentioned by you) are truly neck deep in a sea of debt that implies that their next step could well just be to ask for a bailout. That means that we, the taxpayers, shall foot the bailout, and this momentary schadenfreude shall boomerang on us. Hence, we should hope that they are able to come out from their respective financial difficulties sooner than later. Incidentally BSNL has the lowest debt to equity ratio in the telecom sector so while everybody likes to lampoon BSNL, it would… Read more »
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