BSNL’S FINANCIAL POSITION TO BECOME NORMAL BY NEXT QUARTER- SAYS DIRECTOR (FINANCE)

BSNL expects normalcy in liquidity position by Sept quarter

“The BSNL management is making all out efforts to ease the pressure on liquidity.It is expected that in near future, the liquidity position of the company will start improving,” Gupta said in the letter dated May 16.
The BSNL management is making all efforts to ease liquidity pressure being faced by the company, and expects normalcy in liquidity position to be restored by the September quarter, according to a senior¬†official of the crisis-ridden PSU. BSNL Director – Finance, S K Gupta has shot off a letter to all Chief General Managers of telecom circles, flagging the “fiercest ever competition” being faced by the telecom sector and said “predatory tariff offerings by the competitors” has triggered a sharp decline in revenue from services.

“The BSNL management is making all out efforts to ease the pressure on liquidity. It is expected that in near future, the liquidity position of the company will start improving,” Gupta said in the letter dated May 16.

He asserted that normalcy in liquidity position is expected to be restored by the next quarter.

BSNL has been able to sustain its customer base, despite the persistent pressure of competition on its revenue.

“The telecom sector being capital intensive, wherein even to remain in business ‘or’ to ensure business sustainability, the service providers are required to invest in newer technologies at frequent intervals, as technologies evolve at very fast pace,” the letter said.

The cumulative effect of these factors have resulted in liquidity crunch, Gupta added.

(The Economic Times)