BSNL turns profitable after 17 years, EBITDA doubles in last four years; Telecom min Scindia calls it ‘turning point’

BSNL Q3 Results: Bharat Sanchar Nigam Limited (BSNL) announced its October-December quarter results for fiscal 2024-25 (Q3FY25) on Friday, February 14, reporting a net profit of ₹262 crore, marking its return to profitability after almost 17 years. The state-owned telecom services provider swung back to black in the December quarter of FY25 for the first time since 2007, when it last reported a quarterly net profit.

Telecommunications minister Jyotiraditya Scindia termed BSNL's quarterly performance a "significant turning point" for the telecom giant, which has focused on expanding service offerings and subscriber base. According to Scindia, BSNL improved on several counts, clinching nearly 14-18 per cent growth across mobility, FTTH, and leased line service offerings.

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BSNL Q3 Results: Key Metrics

BSNL's subscriber base has risen to about nine crore in December from 8.4 crore in June. "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," said Scindia on BSNL's earnings.

BSNL's mobility services revenue grew 15 per cent, Fiber-to-the-Home (FTTH) revenue increased 18 per cent, and leased line services revenue rose 14 per cent over the same quarter of the previous fiscal year. The Q3F25 report underlined BSNL's “focus on innovation, network expansion, cost optimisation, and customer-centric service improvements”.

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BSNL has cut its finance costs and overall expenditure, resulting in a decline in losses of over ₹1,800 crore compared to last year. To enhance customer experience, BSNL has introduced offerings such as National WiFi Roaming, BiTV—Free Entertainment for All Mobile Customers, IFTV for All FTTH Customers, and the first private 5G connectivity for mining.

"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 (see BSNL) keep expenditure and costs under control and significantly reduce losses from the figures of last year," said Scindia. In the last four years, BSNL's EBITDA doubled from ₹1,100 crore to ₹2,100 crore as of FY23-24.

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"…This quarter's return to profitability is a significant turning point for BSNL as it now embarks on providing 4G services to its subscribers across India. Out of 100,000 towers, 75,000 have been installed, and about 60,000 have been commissioned. We hope that all 100,000 towers will be operational by June," said Scindia. BSNL reduced its finance cost and overall expenditure, leading to a decline in losses by over ₹1,800 crore compared to last year.