• OCTOBER 31, 2000

Tariff rebalancing unbalances VSNL

With continuing reduction in international telephony rates Videsh Sanchar Nigam Limited's (VSNL) topline growth continues to be under jeopardy.

(Rs m) 2QFY00 2QFY01 Change
Sales 16,655 16,710 0.3%
Other Income 1,223 1,539 25.8%
Expenditure 12,243 12,849 4.9%
Operating Profit (EBDIT) 4,412 3,861 -12.5%
Operating Profit Margin (%) 26.5% 23.1%  
Interest - -  
Depreciation 235 289 23.0%
Profit before Tax 5,400 5,111 -5.4%
Tax 1,934 1,639 -15.3%
Profit after Tax/(Loss) 3,466 3,472 0.2%
Net profit margin (%) 20.8% 20.8%  
No. of Shares (eoy) 95 95  
Diluted earnings per share* 146 146  
P/E Ratio   4.2  

The company has done well to prevent erosion in top and bottomline. The sharp cuts in telecom tariffs have prevented any realisation growth. Performance has been salavaged due to the increase in international telephony traffic, which was up 17.8% for 1HFY01.

Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

Equitymaster Agora Research Private Limited (Research Analyst)
103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407