VSNL rings in Rs 107-cr profit

MUMBAI: The Tata-owned Videsh Sanchar Nigam (VSNL) has reported an 18% rise in net profit to Rs 107 crore during the quarter ended September ’06, while revenues grew 5% to Rs 1,005 crore. The company’s operating profits improved 4% to Rs 198 crore in the corresponding previous year quarter.

“Enterprise and carrier data revenues grew 25% on a quarter-to-quarter basis, in spite of price cuts announced during the quarter,” VSNL said in a statement in Mumbai. VSNL’s revenues for the half-year ended September 30, stood at Rs 1,961 crore, while net profit was Rs 195 crore.

During the quarter, the company announced a reduction in the prices of international private-leased circuits and internet-leased lines by up to 25% and 40%, respectively.

VSNL is building two submarine cable systems. It has signed an MoU with Etisalat, Saudi Telecom, Telecom Egypt, and Telecom Italia sparkle for the construction of the India-Middle East-Western Europe (IMEWE) cable system.