**BSNL Reduces Losses to Rs 5,371 Crore in FY24, EBITDA at Rs 2,164 Crore**
*New Delhi, July 25, 2024* – Bharat Sanchar Nigam Limited (BSNL) has reported a significant reduction in its net losses for the financial year 2023-24 (FY24). The state-run telecom operator managed to narrow its losses to Rs 5,371 crore, a marked improvement from the Rs 8,161 crore loss recorded in the previous fiscal year (FY23). This development comes amid ongoing efforts to revitalize the company and improve its financial health.
The company’s Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for FY24 stood at Rs 2,164 crore, representing a substantial 38.8% increase compared to the prior year【6†source】【7†source】.
**Financial Performance and Revenue Growth**
BSNL’s revenue from operations grew by 1% year-over-year to reach Rs 19,343.6 crore in FY24. Despite this growth, the company fell short of the government’s revenue target of Rs 20,008 crore. The improvement in financial performance was driven by a reduction in total expenses, which decreased by 2.5% to Rs 26,683 crore. However, employee costs rose by 4.4% to Rs 8,304 crore, making up 31.1% of the total expenses【7†source】【8†source】.
**Decline in Cellular Revenue**
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The company faced challenges in its cellular services segment, with revenue declining by 6% to Rs 7,006 crore. This drop was attributed to the loss of subscribers, which has been a persistent issue for BSNL as it competes with private telecom operators. In response, BSNL is focusing on improving its subscriber base and enhancing its service offerings【6†source】【8†source】.
**Broadband and Future Plans**
On a positive note, BSNL’s broadband services have shown promising growth. Revenues from fixed-line broadband increased by 9% to Rs 3,662 crore, driven by the rising demand for reliable internet services. The company is also making strides in its 4G network deployment, with plans to expand its 4G coverage significantly in the coming years【6†source】.
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BSNL has set ambitious revenue targets of Rs 24,428 crore for FY25 and Rs 28,476 crore for FY26. To achieve these targets, the company is focusing on addressing subscriber losses and growing its non-mobility services. The engagement of Boston Consulting Group (BCG) for 34 months at a cost of Rs 132 crore is part of BSNL’s strategy to enhance its operational efficiency and financial performance【8†source】.
**Government Support and Revival Packages**
The Indian government has played a crucial role in supporting BSNL’s revival efforts. Since 2019, multiple revival packages have been introduced to help the company reduce operating costs and improve its financial standing. In 2022, a significant revival package worth around Rs 1.64 lakh crore was provided, focusing on fresh capital infusion, debt restructuring, and viability gap funding for rural telephony. Additionally, in 2023, the government approved the allocation of 4G and 5G spectrum to BSNL, with a total outlay of approximately Rs 89,000 crore【6†source】.
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BSNL’s financial performance in FY24 marks a positive step towards its long-term goals of achieving profitability and operational efficiency. While challenges remain, particularly in the competitive cellular services market, the company’s efforts to expand its broadband services and the ongoing support from the government are expected to drive future growth. As BSNL continues to implement its revival strategies, it aims to strengthen its position in the Indian telecom industry.
