Bharat Sanchar Nigam Limited (BSNL) has narrowed its loss to Rs 7,441.11 crores in the financial year ending March 31, 2021. The state-run telco had posted a loss of Rs 15,499.58 crores in FY20. This means that BSNL has been successful in lowering losses by approximately 50%. According to a PTI report, a BSNL official said that the telco’s losses have come down mainly because of the voluntary retirement scheme (VRS) opted by 78,569 employees.
BSNL’s Revenue from Operations Declined in FY21
The state-run telco’s revenue from operations declined in FY21 by 1.6% to Rs 18,595.12 crore against the Rs 18,906.56 crore in the preceding financial year. This has also affected BSNL’s net worth in a negative manner. The telco’s net worth has slipped from 59,139.82 crores in FY20 to Rs 51,686.8 crore in FY21, which is a worrying sign.
At the same time, BSNL’s outstanding debt has increased from Rs 21,674.74 crore in FY20 to Rs 27,033.6 crore in FY21.
While the telco’s debt is increasing, its revenue from operations is slipping. The lowering net worth is just a sign that if things remain the way they are, BSNL might be looking at a very gruesome future.
The telco’s 4G plans surface every now and then, but there’s no real action. BSNL has the capacity to grow, but for that, its 4G plans will have to be sped up, without which it will become a telecom operator only serving customers who want to stay on legacy networks. The day these customers start shifting to new generation networks’, BSNL’s role in the Indian telecom industry will be over.
The hybrid 4G plans proposed by the telco is a very clever one, but there’s been no major progress on it for quite some time now. It shouldn’t take this much time for the telco and the government to start with the 4G plans of the company.