The government-owned Bharat Sanchar Nigam Ltd (BSNL), which is anticipated to end FY23 with revenues of roughly Rs. 17,000 crore, has a far greater goal to meet in FY24. The government has increased the company’s revenue target by 17% to Rs 20,008 crore for the upcoming fiscal year. According to its MoU with the government, the company has revenue goals for FY25 and FY26 of Rs 24,428 crore and Rs 28,476 crore, respectively. The chairman and managing director of the corporation have once more read the riot act to the chief general managers of all circles as a result of this (CGMs).
Even as they complete all year-end tasks for the fiscal year 2022–2023, BSNL asked everyone to start preparing on a war footing for the year that lies ahead. In a letter to the CGMs, BSNL CMD P K Purwar stated that they believe FY 2024–24 will be difficult due to a 17% increase in the income targets under the MoU (memorandum of understanding) with the DoT (Department of Telecommunications).
The company has set a goal revenue for FY23 of Rs 17,161 crore, or 2% YoY growth. The company’s net losses jumped to Rs 5,457 crore from Rs 5,424 crore a year earlier due to increases in expenses like staff costs during the nine months that ended on December 31 despite a 14% YoY growth in sales to Rs 12,748 crore.
An MoU between the DoT and BSNL was inked at the moment the Rs 1.64 trillion revival package was approved. This agreement called on BSNL to meet revenue goals, be profitable and maintain accountability when carrying out operations.
Purwar wrote in the letter that every effort should be made to keep operating costs under control in order to maximise Ebitda. All circles with lower operational revenue this year than last year will be classified as “non-performing” in the performance review.
The network investments being made align with the QoS (Quality of Services) targets, and it is in BSNL’s best interest to try to meet the high service standards demanded by its clients. Given the performance-based bonus marks provided by the assessment system, Purwar continued, there is every incentive to own all targets and feel driven.
While the company’s revenues increased overall in the nine months that ended in December, they decreased in 13 circles. It should be mentioned that the signed Memorandum of Understanding (MoU) between DoT and BSNL to implement the Cabinet decision (revival package) mandates BSNL to maintain accountability by taking action against non-performers. Purwar had written to CGMs last month based on performance. It can be seen that over the past year, three circles have dipped into the critically negative range, five circles have grown significantly negative, and five circles are borderline negative (in terms of revenue).
West Bengal, Chennai, UP East, Sikkim, Andaman and Nicobar, Orissa, Bihar, and Karnataka are the eight circles where the company has experienced a significant decline in revenues. Kerala, Jammu and Kashmir, Andhra Pradesh, the North East, and Jharkhand are the regions where the corporation has seen some revenue difficulty.
Data from the Telecom Regulatory Authority of India shows that the corporation lost 7.7 million mobile members in 2022, bringing its total base to 106.6 million at the end of December. The income of BSNL fell by about 4% in FY22 to Rs 16,811 crore. The company’s loss decreased from Rs 7,441 crore the year before to Rs 6,982 crore.
BSNL must report a net profit in the fiscal year 2026–2027 in order to meet the goals set by the government of India when it offered the bailout package.
