MTNL Drops Over 2% After Q4 Net Loss Widens
MTNL drops over 2% after Q4 net loss widens, marking a significant downturn for the company. Over the past three months, MTNL's financials have taken a hit, leading to an expanded net loss that has alarmed investors and market analysts alike.
MTNL Drops Over 2% After Q4 Loss
Telecom operator Mahanagar Telephone Nigam Limited (MTNL) dropped as much as 2.31% to an intraday low of Rs 37.09 per share. The fall came after the company reported weak results for the Spring quarter of the fiscal year 2024 (Q4FY24). MTNL's net loss increased to Rs 783.7 crore from a net loss of Rs 748.6 crore in the final quarter of fiscal year 2023 (Q4FY23).
The New Delhi-based company's revenue fell nearly 5% to Rs 209 crore in the March quarter of FY24, from Rs 219.2 crore in the March quarter of FY23. MTNL's loss before interest, taxes, depreciation, and amortization (Ebitda) was Rs 74.9 crore in the Spring quarter of FY24, compared to an Ebitda loss of Rs 125.6 crore in the same quarter a year earlier (Q4FY23). The telecom company's expenses fell 2.6% year-on-year to Rs 1,137.2 crore in Q4FY24, compared to Rs 1,167.2 crore in the same quarter last year.
State-owned MTNL was set up in 1986 by the Government of India to improve telecom services, expand the telecom network, introduce new services, and generate revenue for telecom development in India's major cities, Delhi (the political capital) and Mumbai (the financial capital). The telecom company has a market capitalization of Rs 2,346.12 crore, according to the Bombay Stock Exchange. The stock's 52-week high is Rs 52.35, while its 52-week low is Rs 18.95 per share. MTNL's shares were trading 1.92% lower at Rs 37.24 per share, while the S&P BSE Sensex was trading 0.48% lower at 74,143.48 points.
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