MTNL net loss at Rs 773.5 crore in June quarter, signs 10-year service pact with BSNL

About this update from Mahanagar Telephone Nigam Limited

MTNL clocked Rs 183.9 crore as revenue from operation for the June quarter, down by 7.8 percent on year, while the net loss narrowed to Rs 773.5 crore.The PSU telecom company posted an EBITDA loss of Rs 150 crore, unchanged from a year ago.MTNL also announced the sale of its stake in overseas arm Mahanagar Telephone (Mauritius), and said it has approved the sale of stake in its JV with STPI back to the partner. MTNL will also be closing its wholly-owned subsidiary Millennium Telecom.The telecom player also approved a service agreement with BSNL for 10 years.MTNL has struggled to compete with private players and its loss had widened in FY24 compared to a year ago.Last month, the government deposited Rs 92 crore in an escrow account to ensure timely interest payment on MTNL's rupee bonds, as the telecom player battled funding crunch.The government has been considering the option of handing over operations of MTNL to BSNL through an agreement, instead of pursuing a merger route, a source privy to the development told news agency PTI. The source said that given MTNL's high debt, a merger with BSNL was not a favourable option.

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