BSNL reduces loss in Q1 FY24 to Rs 1470 billion

The telco's overall expenses decreased by 15.3% to Rs 6,108 million in Q1 FY24. However, the telco's bottom line wasn't greatly impacted by the declining revenues at the same time.

Bharat Sanchar Nigam Limited (BSNL) lowered its loss for the first quarter of FY24 to Rs 1,470 crore. However, the telco's overall revenues also saw a sizable fall. BSNL's operating revenue for the first quarter fell by 33% sequentially to Rs 4,290 crore.

Of the numerous factors, the company's cellular services division being the main one, might be blamed for the drop in sales. Customers still have access to legacy network services through BSNL, while commercial telcos have even begun to roll out 5G nationwide.

The telco lost Rs 2,696 crore in the previous quarter, or Q4 FY23, according to a FE report. In contrast to that, BSNL significantly reduced its own loss during the first quarter, which is a good development. The telco's overall expenses decreased by 15.3% to Rs 6,108 million in Q1 FY24. However, the telco's bottom line wasn't greatly impacted by the declining revenues at the same time.

BSNL is currently working on rolling up its own 4G/5G network. The telco will purchase the hardware from Tata Group-owned Tejas Networks. The systems integrator for BSNL will be TCS (Tata Consultancy Services), another business in the Tata Group. The BSNL 4G deployment is anticipated to begin soon. In the Punjab state, the telco has previously conducted a beta launch. Over 200 live test sites are being used by BSNL to gather input so that, once everything is in order, a large-scale deployment can proceed.

For a while now, BSNL has been losing subscribers. This has a real impact on the telco's ability to increase revenues. Watching to see if the telecom regains some of the lost market will be intriguing.

The Union Cabinet earlier this year approved the third revival package for Bharat Sanchar Nigam Limited (BSNL). This complete package, which would cost a total of Rs 89,047 crore, intends to revive BSNL and establish it as a dependable telecom service provider with a particular interest and emphasis on enhancing connectivity in rural parts of India.

The first revival package, totaling Rs 69,000 crore, was approved in 2019, marking the beginning of the process to revive BSNL and Mahanagar Telephone Nigam Limited (MTNL). Following which , the government approved the second rejuvenation package in 2022, totaling Rs. 1.64 lakh crore. 

The telco is not doing well and keeps losing customers to private telecom companies. By October or November 2023, Bharat Sanchar Nigam Limited (BSNL) will stop losing subscribers, according to telecom minister Ashwini Vaishnaw. The company would be able to give the private telecom carriers in the coming year fierce competition, the minister said in addition to announcing the third relief package. “Once the rollout of 4G and 5G takes place, the company will stop losing its subscribers,” he claimed.

A notable component of the relief package is the transfer of shares to BSNL in exchange for the 4G/5G spectrum. As part of the rehabilitation plan, BSNL is expected to see a large increase in authorized capital, going from Rs. 1,50,000 crore to Rs. 2,10,000 crore.