Bharat Sanchar Nigam Limited , the Indian state run telecommunication provider posted a positive operating revenue by increasing it to 27,242 crore in the financial year which ended on March 2015.This is the highest operating revenue the company has posted in 5 years.
The company was in dire condition with an operating loss of Rs690 crore in the financial year 2013-14 . The turnaround came because of the initiative done by the management to improve the employee and the infrastructure cost. The company reduced its employee strength from 3.25 Lakh employees to 2 Lakh employees mainly due to retirement.
According to Managing Director Anupam Srivastava “Data is part of the key strategy for the turnaround. We missed the voice bus so now our main focus is on data.” According to the financial report of the company Data was the main cash cow of the company as it contributed 10% to the overall revenues. Still the data driven was below the Industry average of 20%.
The company has a low debt strategy with 0.13 debt-equity ratio. The CAPEX will take the upward spiral by Rs4400 crores. This CAPEX will be used for Data expenditure and installation of new infrastructure in the eastern zone of the country. The company already has the lowest data tarrif in the country. Other than DATA infrastructure the company plans to invest on increasing the number of telecom towers and improve customer service by adding more call centres.
The company is planning to launch a new tower sharing enterprise and the revenues from the same will increase from the current 42% .The company has also focused on reducing the MNP(mobile number portability) by providing additional benefits to the consumers. The MNP’s decreased gradually this year as the number of people porting in were 1.57 lakhs while only 1.24 lakh people ported out.