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BSNL reduces losses to 7,500 crores in the 2019 fiscal year says CMD

The state-backed telecommunications operator is aggressively pursuing the implementation of its ambitious reactivation plan that includes an interesting voluntary retirement scheme (VRS), the monetization of real estate and the allocation of 4G airwaves in the 2100 MHz band to compete with major telecos like Vodafone, Idea, Bharti Airtel and Reliance Jio.

In a Statement BSNL CMD said, "The government has categorically said that PSU should remain in the telecommunications sector, which is encouraging us," said Shrivastava, adding that the telecommunications company expects the Cabinet to approve its reactivation plan soon.
BSNL reduces losses to 7,500 crores in the 2019 fiscal year says CMD

State control Bharat Sanchar Nigam Limited (BSNL) plans to reduce losses for the 2019 fiscal year to around Rs. 7,500 crores, following cost reduction measures and healthy business growth.

"We are able to reduce our losses to around 7,500 crores due to lower expenses," BSNL Chairman and Managing Director Anupam Shrivastava told the ETT, adding that the company's cost-cutting measures gave good results.

The state run teleco reported a loss of Rs. 7,992 crore for the fiscal year ended in March 2018, which was extended from Rs 4,793 crores in fiscal 2017.

"While revenues have been affected, expenses are also controlled," he added. Telco's turnover will probably reach 23,000 crores in the 2019 fiscal year, while revenues amount to 25,070 crores in the 2018 fiscal year.

In addition to reducing costs, the company's fourth smallest loss is driven by significant business growth in the last fiscal year, which almost doubled its business connections to 91,000.

"We added a record number of 91,000 corporate customers for the 2019 fiscal year, including business-to-business connections, which showed growth of over 50% in the last year," the official said.

The company's activity has contributed to almost 6500 crore of Rs 6,500 crores during the year.

In a highly competitive industry, BSNL has taken several measures to reduce internal expenses, including the cessation of employee benefits, such as the allowance for local travel. In the previous fiscal year, the telecommunications company was able to save Rs 2,500 crores from similar measures.

The state-backed telecommunications operator is aggressively pursuing the implementation of its ambitious reactivation plan that includes an interesting voluntary retirement scheme (VRS), the monetization of real estate and the allocation of 4G airwaves in the 2100 MHz band to compete with major telecos like Vodafone, Idea, Bharti Airtel and Reliance Jio.

"The government has categorically said that a public company must remain in the telecommunications sector, which is encouraging," said Shrivastava, adding that telco expects the Government to approve the recovery plan soon.

The service provider has the lowest debt in the sector of 14,000 crores.

BSNL has become the second telecommunications company after Jio to add new subscribers after an erosion of subscribers throughout the sector due to a greater rivalry that began at the end of 2016. Its market share has gone from 9.44% in March 2018 to 9.76% in January, according to the sectoral regulator information.

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