Bharat Sanchar Nigam Limited (BSNL) has reported a net loss of Rs 1,484 crore for Q2 FY24. The net loss for the period is almost the same as the previous quarter. During Q1, the state-run telecom company's net loss was Rs 1,488 crore. However, on a YoY basis, the net loss is actually lower, which is a positive sign for BSNL. For Q2 FY23, the net loss for BSNL was Rs 2,056 crore.
For the first six months of FY24, BSNL reported a cumulative net loss of Rs 2,972 crore, while for the same period the previous year, the net loss was much higher at Rs 3,542 crore.
The central government expects BSNL to become profitable by FY27. BSNL is already reporting operating profits. For FY23, BSNL's operating profit soared 65% YoY to Rs 1,559 crore. With the 4G rollout planned in the near future, BSNL is expected to increase its market share in wireless services and increase overall revenue.
During the quarter, the maximum share of revenue came from cellular, leased lines, and FTTH (Fiber-to-the-Home) services. The largest revenue contributor was, of course, the cellular services. BSNL saw a reduction in employee benefits expenses during Q2 FY24. The employee benefits expenses came down from Rs 2,108 crore in Q2 FY23 to Rs 1,882 crore in Q2 FY24.
BSNL has received multiple revival packages in the last few years. The first one came in 2019, followed by two more in 2022 and 2023. With the latest revival package, the government has focused more on deleveraging the balance sheet of BSNL. Further, BSNL was allocated 5G spectrum which means that whenever BSNL starts 5G, it can utilise this spectrum PAN-India to offer services. The technology stack that BSNL is deploying for homegrown 4G can be upgraded to 5G as well.