Priyanka Tiwari
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Bharat Sanchar Nigam Limited (BSNL) has made a strong comeback, recording a net profit of Rs 262 crore in the October-December quarter of the current financial year. This marks the first time in 17 years that the government-owned telecom company has registered a profit. The turnaround is largely attributed to the government’s aggressive push for expanding BSNL’s 4G services, with an additional allocation of Rs 6,000 crore to strengthen its network.
BSNL's Focus on Service Expansion and Customer Growth
Union Communications Minister Jyotiraditya Scindia hailed this achievement as a turning point for BSNL. He highlighted that the company has been focusing on enhancing its services and expanding its customer base. The telecom giant has reported a significant growth of 14-18% in its mobile, fiber-to-the-home (FTTH), and leased line services.
Moreover, BSNL's customer base has seen a remarkable rise, reaching approximately nine crore subscribers in December 2024, compared to 8.4 crore in June 2024. This indicates growing consumer confidence in the company's services.
Breaking a 17-Year Drought of Profits
The last time BSNL recorded a quarterly profit was in 2007. Minister Scindia termed the latest results as a historic milestone for the telecom sector in India. With a net profit of Rs 262 crore in the December quarter, the company has demonstrated that its strategic reforms and operational improvements are yielding positive results. Notably, BSNL’s mobile service revenue has surged by 15%.
EBITDA Surges to Rs 2,100 Crore
One of the most significant financial highlights is the doubling of BSNL's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) over the past four years. It has grown from Rs 1,100 crore to around Rs 2,100 crore by FY 2023-24.
Additionally, revenue from FTTH services increased by 18%, while leased line service revenue grew by 14%. The company has also successfully reduced its financial costs and overall expenses, leading to a decrease in losses by over Rs 1,800 crore compared to the previous year.
The Road Ahead for BSNL
BSNL’s return to profitability signifies a revival in India’s public sector telecom industry. With continued investment in 4G expansion and improving service quality, the company is well-positioned to strengthen its market presence. The government's strong backing, along with BSNL's strategic initiatives, is expected to drive further growth in the coming years.
As the telecom sector evolves, BSNL’s resurgence serves as a testament to the power of strategic reforms, infrastructure investment, and customer-centric policies.
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