The fake narrative of profitability

Bharat Sanchar Nigam Ltd (BSNL) claims to have reported a net profit of Rs 280 crore in the Q4-FY25, registering gains for the second consecutive quarter, a first for the company. In Q3-FY25, BSNL registered gains for the first time since 2007 with a Rs 262 crore net profit. Please see table-1 for quarterly results and tables-2 & 3 for annual result.

However, the truth behind these numbers is bitter. In the Q3, BSNL, with effect from Q1-FY25, BSNL changed the method of amortisation of spectrum fees from Straight Line Method (SLM) to the Unit Based Amortization Method (UBAM). This change resulted in reducing expenses by Rs 782 crore.