Mumbai, Jan. 24: Videsh Sanchar Nigam Ltd (VSNL) has registered a 77 per cent drop in net profit to Rs 81.8 crore in the third quarter ended December, 2002 as against a net profit of Rs 357.2 crore posted in the same period last fiscal. Net sales from operations was also lower at Rs 1,003 crore as against Rs 1,738.6 crore in the previous corresponding quarter, VSNL said in a release.
Excluding the adjustments pertaining to the period ended September 2002 with respect to interconnect agreements finalised with domestic operators, the profit in the reporting quarter stood at Rs 137.9 crore.
The changed scenario in the international telephony sector, including sharp declines in international settlement rates and interconnect rates with Indian operators; and opening up of the sector to competition have had an adverse impact on the company’s financials. For nine months ended December 2002, VSNL’s net profit dropped to Rs 589 crore (Rs 1,091.2 crore) while net sales stood at Rs 3,623.9 crore (Rs 4,862.3 crore).