VSNL Q2 net profits up 18% to Rs.107 Crores

Bangalore, October 31, 2006: International telecommunications major VSNL today announced its unaudited financial results for the quarter ended September 30, 2006.

The Company’s revenues on a standalone basis grew by 5% for the quarter ended September 30, 2006 to Rs.1,005 Crores against Rs.961 Crores for the quarter ended September 30, 2005. Operating profits improved by 4% for the quarter ended September 30, 2006 to Rs.198 Crores against Rs.190 Crores for the quarter ended September 30, 2005.

Net profits of the Company increased by 18% to Rs.107 Crores for the quarter ended September 30, 2006 against Rs.91 Crores for the quarter ended September 30, 2005.

Volumes in the Company’s wholesale voice and enterprise & carrier data businesses continued to grow significantly; enterprise and carrier data revenues grew 25% on a quarter to quarter basis, in spite of price cuts announced during the quarter.

VSNL’s revenues for the half year ended September 30, 2006 stood at Rs. 1,961 Crores against Rs.1,890 Crores for the six month period ended September 30, 2005. Net profits for the half year ended September 30, 2006 were Rs.195 Crores.

During the quarter, the company announced a reduction in the prices of International Private Leased Circuits and Internet Leased Lines by upto 25% and 40% respectively. VSNL also announced plans to build two submarine cable systems. The company’s plans have made swift progress with an MoU being signed with Etisalat, Saudi Telecom, Telecom Egypt, and Telecom Italia sparkle for the construction of the India-Middle East-Western Europe (IMEWE) cable system.

Source : Equity Bulls

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