MTNL has reported a 58.3 per cent decline in net profit to Rs 2 billion during the quarter ended December 2004, compared with Rs 4.82 billion during the corresponding quarter of the previous fiscal year. According to the company, the higher profit in the third quarter of the previous year was not comparable due to the changed depreciation policy. MTNL’s income from services during the third quarter of 2004-05 also declined by 17.3 per cent to Rs 12.61 billion. This was attributed to stiff competition from other operators and reduction in tariffs in Delhi and Mumbai. Staff expenses during the quarter ended December 2004 rose Rs 677 million to Rs 4.12 billion during the third quarter of the current financial year, compared to the corresponding quarter of the previous year. The administrative and operative expenses during the quarter ended December 2004 increased by Rs 163 million to Rs 2.64 billion.
