BSNL, the state run telecom company, posted its first annual loss of Rs.1,823 crore in FY 2009-10. This is the first loss incurred in the history of the company since its inception. In FY 2008-09, BSNL posted a profit of Rs. 575 crore.
Decline in the number of landline owners and higher wage payout to the employees because of the award of the Sixth Pay Commission for government were major causes of loss.
Kuldeep Goel, Chairman and Managing Director, BSNL, said that in terms of revenue return per share, BSNL stood at 19.5 percent, second after Bharti Airtel. The company also observed a strong growth of 47 percent in the broadband segment in FY 2009-10, earning a revenue of Rs 2,485 crore against Rs.1,690 crore in 2008-09.
Mr.Goel retired on August 1, 2010 after serving the company for three years. He is hopeful that BSNL would turn around in the current fiscal year. He said,
“The wage revision alone caused an additional expenditure of Rs 2,900 crore. If the wage revision had not been there, the company would have recorded a profit before tax of Rs 703 crore,”
BSNL also paid an interest of Rs.1,500 crore in 2009-10 in interest for acquiring 3G and BWA (Broadband Wireless Access) spectrum for Rs.18,500 crore.
BSNL announced a decline of 10.4 percent in revenues at Rs.32,045.41 crore for FY 2009-10 against 35,812 crore in 2008-09.