Mahanagar Telephone Nigam
Limited
NSE Symbol MTNL
The quarterly Results of Mahanagar Telephone Nigam Limited for the
third quarter ending Dec,2011 are as can be predicted of it, based on the
general fortunes of this PSU telecom company for quite some time.
The results table is given below :
Net
Sales is stagnant at around Rs.852 cr.
Despite the claims of MTNL for reducing the Staff
(Number), the staff cost itself is almost
equal to the Net Sales.
Depreciation + other expenditure is more than the
Net Sales income by itself.
Landline revenue for the 3rd quarter has dropped by
11.03% to Rs 678.27 cr from Rs 762.44 cr in the earlier corresponding period. Revenue
from mobile services grew nearly 11% to Rs 180.94 cr from Rs 163.07 cr in the
earlier corresponding quarter. Landline Revenue is 4 times of the Mobile
services Revenue – but is falling continuously. When we analyze the Mobile
Potential in the 2 cities and the competition therein – we find that any amount
of increase in Mobile Revenue (in Mumbai and Delhi) may not be sufficient to
meet the present expenditure levels – unless, Landline Revenue is sustained and
improved seriously and quickly.
Loss
from Operation is continuing – and is at Rs.704 Cr for Q/E Dec,2011.
Interest
Expense is increasing steadily and is at Rs.259 cr this
quarter. Loss before Tax is a staggering
Rs.943.88 Cr.
Net
Loss is Rs.929.77 Cr.
Basic EPS
in the last 5 Quarters is Rs(-)14.76
in Q3FY 12; Rs(-)13.72 in Q2 FY 12; Rs(-)13.49 in Q1 FY 12; Rs(-)17.45 in Q4 FY
11; Rs(-)10.65 in Q3 FY 11.
It seems to need loan re-structuring in view of the
cash crunch being faced by it.
Net Loss in the last 3 years
has been increasing gradually .It was Rs(-) 2801.92 Cr in FY 11; Rs(-)2610.97
Cr in FY 10; Rs.(+)211.72 Cr in FY 09.
In
current year, the loss so far
is Rs(-)929.77 cr; for Q3 + Rs(-)864.19
for Q2 + Rs(-)850.04 for Q1 =Rs.2644 Cr. With a similar loss in Q4 – the total
loss of FY 2012 will be around Rs.3550 Cr.
The Management has to work out a PLAN and a Business
Model – which can sustain the company and make it profitable. And, this must be
done VERY QUICKLY.
While Merger with BSNL is a possible solution - BSNL itself has started incurring LOSSES and needs a sustainable Business Model for itself.
RESULTS TABLE
|
MTNL
|
31-Dec-11
|
30-Sep-11
|
30-Jun-11
|
31-Mar-11
|
31-Dec-10
|
|
Net Sales
|
85209.7
|
86064.7
|
81318.2
|
80776.2
|
92252.2
|
|
Other Oprtng Income
|
2267.2
|
3539.3
|
2983.4
|
4725.2
|
2870.6
|
|
Employees Cost
|
82326.2
|
80116.5
|
84787.4
|
92947.5
|
81285.1
|
|
Depreciation
|
36816
|
35866.1
|
35641.2
|
36801.4
|
36063.1
|
|
Other Expenditure
|
38744.6
|
37813.3
|
32772.3
|
41121.3
|
43357.7
|
|
Total Expenditure
|
157886.8
|
153795.9
|
153200.9
|
170870.2
|
160705.9
|
|
Profit from Operations
|
-70409.9
|
-64191.9
|
-68899.3
|
-85368.8
|
-65583.1
|
|
Other Income
|
1959.3
|
1301.7
|
2490.1
|
-10094.9
|
11679.4
|
|
Interest
|
25937.7
|
23503.8
|
18589.6
|
14423.6
|
13598.3
|
|
Profit before tax
|
-94388.3
|
-86394
|
-84998.8
|
-109887.3
|
-67502
|
|
Tax expense
|
4.8
|
4.7
|
4.8
|
4.5
|
4.6
|
|
NPT after tax
|
-94393.1
|
-86398.7
|
-85003.6
|
-109891.8
|
-67506.6
|
|
Extraordinary Items
|
-1415.8
|
19.8
|
0.6
|
66.1
|
-402
|
|
Net Profit
|
-92977.3
|
-86418.5
|
-85004.2
|
-109957.9
|
-67104.6
|
|
Face Value (In Rs
|
10
|
10
|
10
|
10
|
10
|
|
Paid Up Equity
|
63000
|
63000
|
63000
|
63000
|
63000
|
|
Basic EPS
|
-14.76
|
-13.72
|
-13.49
|
-17.45
|
-10.65
|
|
Public holding (%)
|
43.75
|
43.75
|
43.75
|
43.75
|
43.75
|
*
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