BSNL Achieves Remarkable Operating Profit of Rs 1,559 crore in FY23, Advances in Restructuring Financials

In a significant stride towards financial revival, Bharat Sanchar Nigam Limited (BSNL), the state-owned telecommunications giant, reported a commendable 65% surge in its operating profit, reaching an impressive Rs 1,559 crore during the fiscal year culminating on March 31, 2023. The company's financial trajectory has showcased a promising trend, as its loss before exceptional items also witnessed a noteworthy reduction to Rs 6,662 crores, as shared by Devusinh Chauhan, the Minister of State for Communications, on Wednesday.

Chauhan affirmed, "The loss incurred by BSNL, accounting for the exclusion of exceptional items totaling Rs. 1,499 crores, for the fiscal year 2022-23 stands at Rs 6,662 crores. This marks a commendable 4.5% enhancement over the performance of FY 2021-22. Notably, BSNL has maintained a positive EBITDA since the fiscal year 2020-21."

Elaborating further, he unveiled that the total revenue generated in FY23 amounted to Rs 20,699 crore, indicating a substantial 8.6% upswing from the previous year's revenue of Rs 19,052 crore. Chauhan's insightful remarks came while addressing inquiries regarding BSNL's financial accomplishments within the Lok Sabha.

Despite its positive strides in profitability, BSNL experienced a decline in its wireless subscriber base, standing at 103.5 million by the end of FY23, alongside a decrease in its wireline user base to 7.1 million, both showing a reduction compared to the preceding year. In comparison, BSNL's wireless user base at the conclusion of FY22 stood at 113.6 million, while its wireline base registered 7.5 million.

Chauhan unveiled a promising development in BSNL's strategic roadmap by revealing that the company has initiated the procurement of purchase orders for a whopping 100,000 sites. These sites will be instrumental in the rollout of advanced 4G/5G services, harnessed through indigenous technological advancements. The Union Government's green light on June 7 this year further bolstered BSNL's prospects, approving the allocation of 4G/5G spectrum with an extensive investment of Rs 89,047 crore through equity infusion.

"In light of these comprehensive measures, BSNL is poised to undergo a transformative turnaround, with the anticipation of achieving net profitability in the financial year 2026-27," Chauhan confidently asserted. This foresight underscores BSNL's resilient commitment to innovation, adaptability, and strategic prowess in an ever-evolving telecommunications landscape.