MTNL December Quarter Results: The net deficit of the government company Mahanagar Telecom Corporation Limited was Rs 836.07 crore on the consolidated basis in the October-December 2024 quarter. It was Rs 839.03 crore a year ago. Consolidated revenue from the operations fell 11.5 percent to Rs 170.07 crore as compared to a year ago. The revenue was Rs 192.24 crore in the December 2023 quarter.
The company has told the stock markets that the total expenditure in the December 2024 quarter was Rs 1175.72 crore, which was Rs 1174.79 crore a year ago. Ebitda (Earnings Before Interest, Tax, Depreciation, and Amortisation) Los increased to Rs 128.1 crore. It was Rs 125.7 crore in the December 2023 quarter.
Share closed down 5 percent
On February 14, MTNL’s stock on BSE closed over 5 percent to close at Rs 46.86. The company’s market cap is Rs 2900 crore. The stock has come down 10 percent in the last one week. By the end of December 2024, the government had 56.25 percent stake in the company. In the last 2 years, MTNL shares have gained 116 percent.
Recently a financial package of ₹ 6000 crore has been approved
A few days ago there was news that the Union Cabinet has approved a financial package of about ₹ 6000 crore for Bharat Sanchar Nigam Limited (BSNL) and MTNL. This package is to accelerate the 4G network expansion of both companies. This funding is expected to help both government telecom companies to strengthen and expand their network infrastructure. Under the scheme, about one lakh 4G site will be set up to improve connectivity and ensure better network services for consumers.
The government has already provided financial assistance of ₹ 3.22 lakh crore to BSNL and MTNL through 3 different revival packages. Loan accounts of MTNL, buried under heavy debt burden, were classified as NPA by most public sector banks in October last year. MTNL has a loan of Rs 31,944.51 crore on MTNL.