BSNL Reports First Profit Since 2007, Posts ₹262 Crore in Q3 Amid Expansion & Cost Cuts

Bharat Sanchar Nigam Limited (BSNL) has announced a net profit of Rs 262 crore for the third quarter of the financial year 2024-25.

This marks the first time since 2007 that the state-owned telecom company has reported a profit, driven by an increase in customer additions, aggressive network expansion, and cost optimization strategies.

Financial Turnaround and Growth Prospects

A. Robert J. Ravi, CMD of BSNL, expressed satisfaction with the financial results, stating, “We are pleased with our financial performance this quarter, which reflects our focus on innovation, customer satisfaction, and aggressive network expansion. With these efforts, we expect revenue growth to improve, exceeding 20% by the end of the financial year.”

BSNL’s profit of Rs 262 crore signifies its resurgence and long-term sustainability.

The company has also significantly reduced finance costs and overall expenditure, leading to a decline in losses by over Rs 1,800 crore compared to the previous year.

Revenue Growth Across Key Segments

The telecom provider reported a 15% increase in revenue from mobility services, while revenue from Fiber-to-the-Home (FTTH) services grew by 18%.

Additionally, leased line services witnessed a 14% increase compared to the same quarter last year.

To enhance customer experience, BSNL introduced several innovations, including National WiFi Roaming, BiTV – Free Entertainment for All Mobile Customers, and IFTV for All FTTH Customers.

“Our continuous focus on Quality of Service and Service Assurance has further strengthened customer trust and reinforced BSNL’s position as a leading telecom service provider in India,” Ravi added.

Focus on Service Excellence and Digital Transformation

BSNL remains committed to enhancing its services, preparing for 5G implementation, and advancing digital transformation. These initiatives will help the company maintain a competitive edge in the telecom sector.

“This financial turnaround underscores BSNL’s commitment to providing high-quality, affordable telecom services while driving India’s digital growth. The company remains dedicated to enhancing service delivery, expanding its customer base, and contributing to the Digital India and Atmanirbhar Bharat vision,” the company said in a statement.

Government Support for 4G Expansion

Earlier this month, the Union Cabinet approved a financial package of approximately Rs 6,000 crore to accelerate the 4G network expansion for BSNL and Mahanagar Telephone Nigam Limited (MTNL).

Under this initiative, around one lakh 4G sites will be deployed to improve connectivity and enhance network services for consumers.

Telecom Minister Highlights BSNL’s Achievements

Telecommunications Minister Jyotiraditya Scindia acknowledged BSNL’s improved financial performance, calling it a “significant turning point” for the company.

He emphasized the company’s growth across mobility, FTTH, and leased line services, with revenue increases ranging from 14% to 18%.

BSNL’s subscriber base has also grown from 8.4 crore in June to approximately nine crore in December.

“Today is an important day for BSNL and for the journey of the telecom sector in India… BSNL has, in the third quarter of FY2024-25, for the first time in 17 years, posted a profit quarterly. The last time BSNL posted a quarterly profit was in the year 2007,” Scindia said.

Cost Reduction and Operational Efficiency

BSNL has taken steps to cut its finance costs and overall expenditure, contributing to a decline in losses by over Rs 1,800 crore. Over the last four years, BSNL’s EBITDA has doubled from Rs 1,100 crore to Rs 2,100 crore as of FY23-24.

“We certainly hope that this year will not just see an increase in revenues at the end of the fourth quarter for the full financial year, but will also keep expenditure and costs under control and significantly reduce losses from the figures of last year,” Scindia added.

Expansion of 4G Services and Future Plans

BSNL is now focusing on providing 4G services to its subscribers across India. Out of 100,000 planned towers, 75,000 have already been installed, and about 60,000 are operational. The company aims to have all 100,000 towers running by June 2025.

BSNL’s strategic initiatives include continuous improvement in service delivery, further digital advancements, and maintaining financial stability.

With a renewed focus on customer satisfaction and technology, the company aims to sustain profitability and contribute to India’s telecom growth.