Pathanamthitta: Government-owned telecom company BSNL has announced its first profit in 17 years, reporting a yield of Rs 262 crore for the third quarter of the current financial year, covering October, November and December. This marks a massive turnaround for the company, which has faced financial difficulties in recent years.
BSNL’s Kerala circle played a crucial role in this success, contributing Rs 80 crore to the overall profit. Kerala’s performance has been consistently strong, with the state’s circle also turning profitable last financial year. For the 2023-24 financial year, Kerala achieved a total profit of Rs 114 crore, making it the best-performing circle in the country.
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BSNL’s road to profitability
BSNL, which was last profitable nationally in 2007, had been operating in the red for over a decade. The company faced losses until the 2020-21 period, but a series of strategic changes and government support have helped it recover. Key to this transformation was a reduction in employee numbers, with BSNL cutting its workforce by half, and a focus on expanding its high-speed fibre service, FTTH (Fiber to the Home).
The turnaround was further supported by three revival packages announced by the Central Government, which helped BSNL implement its restructuring plan and improve its financial position. The fibre revolution, particularly FTTH, has proven to be a crucial driver of the company’s recovery.
FTTH boosts BSNL’s revenue
BSNL’s high-speed FTTH service played a major role in the current profit, with an 18 percent increase in revenue compared to the second quarter. This rise in revenue is partly due to BSNL’s ability to attract subscribers, even as other service providers raised their tariffs.
Another important factor in BSNL’s profitability was cost-cutting measures. The company saved around 60 percent in salary expenses after 78,559 employees took voluntary retirement from the company, which previously employed 1.63 lakh people.
Published: 16 Feb 2025, 08:13 am IST
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