VSNL net profit at Rs 756.4 crores
June 9, 2005

Videsh Sanchar Nigam Ltd. (VSNL), India's premier Telecom and Internet Service Company today announced its audited financial results for the year ended March 31, 2005. VSNL revenues for the 4th Quarter stand at Rs.901 crores as against Rs.778 Crores in the corresponding quarter of the previous year showing an increase of 16%. The board recommended a normal dividend of 45% per share as in the previous year and a one-time special dividend of 15% per share on account of one time extraordinary income.

The key highlights of the year 2004-05 are:

Profit after tax for the year ended March 31, 2005 was Rs. 756.40 crores as against Rs. 377.70 crores for the previous year ended March 31, 2004. This included a one time extra ordinary income amounting to after tax profits of Rs. 395 crores. During the year, the company has achieved growth in volumes of its operations across its key businesses of voice and data services. However market competition has impacted tariffs leading to a marginal growth in total income over the last financial year. The total income during 2004-05 stood at Rs. 3410.4 crores as compared to Rs. 3371.1 crores in the previous year.

The profit after tax during the fourth quarter of the year 2004-05 stood at Rs. 399.20 crores as compared to Rs. 82.2 crores of the corresponding period of 2003-04. The total income for the 4th Quarter stood at Rs 934.0 crores as against Rs 813.2 crores in the corresponding quarter of the previous year.

"The Company continues to perform well in the various businesses it operates in. Improved volumes in the voice business and a strong performance in the data business have contributed to sustained level of operating profits for the year. With the creation of the International Business Group, the agreement to acquire the Tyco Global Network and its entry into the Broadband business,, the company is well placed to position itself as a global telecom player with a presence across many businesses," said Mr. N. Srinath, Director (Operations), VSNL.