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BSNL’s Remarkable Comeback: Posts ₹262 Crore Profit After 17 Years

Written by: Team Angel OneUpdated on: Feb 17, 2025, 4:17 PM IST
BSNL posts ₹262 crore profit in Q3, marking its first profitable quarter since 2007. Revenue growth, cost optimisation, and digital expansion fuel the turnaround.
BSNL’s Remarkable Comeback: Posts ₹262 Crore Profit After 17 Years
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Bharat Sanchar Nigam Limited (BSNL) has reported a profit of ₹262 crore in the third quarter of the financial year, marking its first return to profitability since 2007. This milestone highlights the company’s strategic focus on innovation, network expansion, cost optimisation, and customer-centric service enhancements.

Announcing the financial results, BSNL’s Chairman and Managing Director, Shri A. Robert J. Ravi, stated: “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 further, exceeding 20% by the end of the financial year.”

The company’s revenue from mobility, FTTH (Fibre-to-the-Home), and leased line services has increased by 15%, 18%, and 14%, respectively, over the same quarter last year. Furthermore, BSNL has successfully reduced its finance costs and overall expenditure, leading to a decline in losses by over ₹1,800 crore compared to the previous year.

Key Drivers Behind BSNL’s Profitability

1. Strong Revenue Growth

BSNL’s revenue growth has been driven by its expanding subscriber base and increased adoption of digital services:

  • Mobility services revenue grew by 15%.
  • FTTH services revenue surged by 18%.
  • Leased Line services revenue rose by 14% compared to Q3 of the previous year.

2. Aggressive Network Expansion

To strengthen its position in the Indian telecom market, BSNL has ramped up its 4G rollout and fibre-optic infrastructure upgrades. The company has focused on:

  • Enhancing connectivity in both urban and rural areas.
  • Expanding its high-speed internet services to meet growing consumer demand.

3. Customer-Centric Digital Innovations

BSNL has introduced several new digital services aimed at enhancing customer experience and increasing engagement:

  • National WiFi Roaming – Enables seamless internet access across multiple networks.
  • BiTV – Free Entertainment for Mobile Customers – Offers a variety of high-quality digital content.
  • IFTV – Exclusive Entertainment for FTTH Customers – Provides enhanced digital streaming services.

4. Cost Optimisation and Operational Efficiency

BSNL has implemented cost-saving measures and process automation to improve efficiency. Notable efforts include:

  • A significant reduction in finance costs, leading to ₹1,800 crore savings in annual expenditure.
  • Strategic resource management to enhance operational performance and service delivery.

5. Government Support and Strategic Revamp

Government-backed initiatives have played a crucial role in BSNL’s revival, including:

  • Spectrum allocation and capital infusion to strengthen network infrastructure.
  • Strategic revival measures to bolster long-term sustainability.

BSNL’s Future Growth Strategy

BSNL is committed to sustaining this positive momentum by focusing on the following areas:

  • 5G readiness and digital transformation.
  • Continued expansion of fibre and mobile networks to drive subscriber growth.
  • Revenue growth is expected to exceed 20% by the end of the financial year.

This financial turnaround is a testament to BSNL’s dedication to providing high-quality, affordable telecom services and driving India’s digital connectivity. With an emphasis on innovation and customer experience, the company aims to further strengthen its market position and contribute to the Digital India and Atmanirbhar Bharat vision.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Feb 17, 2025, 4:17 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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