Bharat Sanchar Nigam Limited (BSNL) has reported a net profit of ₹280 crore in the fourth quarter (Q4) of the financial year 2024-25, marking its second consecutive profitable quarter. This achievement follows a ₹262 crore profit in Q3, a significant turnaround from a loss of ₹849 crore in Q4 of the previous fiscal year.
📈 Key Factors Behind BSNL’s Profitability
1. Reduced Depreciation and Amortization Expenses
A major contributor to BSNL’s profitability has been a substantial reduction in depreciation and amortization expenses. In Q3 FY25, these expenses dropped by 48% quarter-on-quarter and 44% year-on-year to ₹814 crore. This was achieved by changing the method of amortizing spectrum fees from the Straight Line Method to the Unit Based Amortization Method, providing a more accurate reflection of cost allocation.
2. Operational Efficiency and Revenue Growth
BSNL’s revenue from operations stood at ₹19,344 crore in FY24, with plans to increase it by over 20% in FY25. The company has seen growth in new areas of operation, including Mobility, FTTH, and Leased Lines, which increased by 15%, 18%, and 14% respectively over Q3 of the previous year.
🏗️ Government Support and Strategic Initiatives
Since 2019, the government has announced three revival packages worth ₹3.2 lakh crore for BSNL and MTNL. These packages have aimed to reduce operating costs and support the companies in achieving operational profits. In line with the Atmanirbhar Bharat initiative, BSNL has placed a purchase order for 1 lakh 4G sites for deployment of indigenous 4G technology, which is upgradable to 5G.
🔮 Future Outlook
BSNL’s recent profitability indicates a positive trend, but the company must continue to focus on improving its core operations for sustainable financial turnaround. Analysts suggest that while accounting adjustments have aided profitability, long-term success will depend on BSNL’s ability to enhance service quality, expand its customer base, and adapt to the competitive telecom landscape. The Financial Express
