1998-99 was yet another year of
good performance for Mahanagar Telephone Nigam Ltd.(MTNL). While the turnover
grew by 8.12% to Rs.5032.46 crores, the company registered a record profit
of Rs.1889.86 crores before tax and prior period adjustments, this achieving
a quantum leap of13.03% over the profit of the previous year of Rs.1671.98
crores. The net profit of the Company has grown to Rs.1297.24 crores thereby
registering a growth of 14.79% over previous year's figure of Rs.1130.13
crores.
MTNL's networth increased to Rs.
6249.26 crores, registering an increase of 21% over the previous year's
networth of Rs.5161.78 crores.
During this year the total revenue
expenditure excluding prior period adjustments was Rs.3369.43 crores, an
increase of 8.43% over the previous year's expenditure of Rs.3107.35 crores.
The debt-equity ratio of the Company is almost Nil, if the debt raised
by the Company for DOT is not considered as the liability of the Company.
Earning Per Share (EPS) during the
year 1998-99 was Rs.20.59 as against Rs.17.94 in the previous year.
From the above figure it will be
clear that the Company's Board is committed to the creation of long-term
shareholder value.
DIVIDEND
We have been pleased to recommend
payment of 30% dividend on the paid-up share capital of Rs 630 crores for
the full year, including for the share represented by GDRs, for the second
successive year, subject to the approval.
LINE GROWTH
MNTL provided a record number of
2.47 lakhs new telephone lines during this year in Mumbai & Delhi.During
the year 1998-99, the Mumbai Unit the Company achieved the distinction
of crossing the 2 million mark for its working lines.
DEMATERIALISATION OF SHARES
With effect from 5th April, 1999,
SEBI has specified MTNL scrip for settlement only in Demat form by all
investors.At present about 98% equity shares of the Company have been dematerialised
and are being traded through electronic mode. I would urgent all the shareholders
to dematerialise their holdings considering its overall safety and efficiency.
FORMATION OF A SUBSIDIARY
COMPANY
The steps are already being taken
for the formation of a subsidiary company to provide exclusively all value
added services in the next millennium so that the Company is able to give
focussed attention to its market driven services.
CODE OF GOVERNANCE
MTNL is in the process of devising
a Code of Governance keeping in view the recommendations of the task force
of the Confederation of Indian Industry and good global practices in this
regard.
AUDIT COMMITTEE OF THE
BOARD
After the induction of four non-official
part-time Directors on the Board of your Company, your Company has attained
the status of full fledged Navratna PSE and an Audit Committee of the Board
consisting of three non-official part-time Directors has been constituted
by the Board.
LIST OF SHARES ON THE NEW
YORK STOCK EXCHANGE
The Company has plans for listing
of its shares on the New York Stock Exchange with its proposed dis-investment
giving an option to its European stakeholders to convert their equity into
an American Depository Receipt. This will give increased flexibility, liquidity
and possible appreciation of share value due to larger volumes of business
by international investors.
MTNL'S ENTRY INTO CELLULAR
MOBILE TELEPHONY
As we are aware, a landmark judgement
was delivered by the Hon'ble High Court of Delhi upholding the validity
of the licence granted to MTNL for providing Cellular Mobile Services in
the two metro cities of Delhi and Mumbai. This judgement was challenged
by the COAI before a Division Bench of Delhi High Court which has recently
dismissed the appeal. This has paved the way for MTNL to start its Cellular
Mobile Services. Accordingly, the Company has floated a new tender and
it is expected that the Company will start Cellular Mobile Services both
in Delhi and Mumbai in the beginning of financial year 2000-2001 AD
INTERNET SERVICES
One of the important milestones
achieved by the Company is to become an Internet Service Provider from
9.2.99. I am very glad to announce that at present we are having around
14000 ISP subscribers. The Company has realised that requirements for Internet
are going to increase exponentially and that it should become a very big
ISP in the two cities.
INTELLIGENT NETWORK SERVICES
MTNL is prod about the provision
of the Intelligent Network Services, some of which have attained a popularity
of a very high order. Services like Virtual Calling Cards and the Account
Calling Cards have found large clientele in both the cities.
COMMITMENT TO CUSTOMERS
AND INVESTORS
MNTL is committed to provide a high
level of customer satisfaction. Various plans are being made and steps
taken for improvement and upgradation of customer care centres.
Sustained efforts were made to maintain
high standards of operational parameters such as fault rate, STD and local
call completion rate and manual trunk efficiency. Consequently, there was
marked improvement in fault rate and call completion rate both in Delhi
and Mumbai Units of the Company. The Company has attained the milestone
of replacing 2.09 lac lines of electromechanical exchanges by digital electronic
exchanges during this year. Today both our networks in Mumbai & Delhi
are fully electronic.
Investors' Relations Cell is being
created to look after the interests and concerns of its shareholders as
well as Bond Holders.
VISION OF MTNL
As we stand on the threshold of
the new millennium commemorating the past but anticipating the futre, challenges
and uncertainties of the coming century and new millennium would appear
to be emerging in the horizon. The Company has plans to enter the new millennium
with the full confidence of facing the challenges of competition and of
enhancing the goodwill of the citizens of Mumbai & Delhi.
ACKNOWLEDGEMENT
I take this opportunity to convey
my thanks to various Ministries of the Government of India and to the Department
of Telecom, in particular, for their continuous guidance and support. I
would like to express my thanks to our bankers, investors, financial institutions
and valued consumers who have utilised our services all the time and helped
us in meeting growth targets. I also wish to convey my gratitude to our
esteemed stakeholders who have reposed confidence in us. I would also like
to record my gratitude to my colleagues on the Board of Directors for their
guidance, encouragement, progressive outlook and co-operation.I would like
to acknowledge the contributions made by the Company's employees at all
levels and seek the co-operation in support of their endeavour.
SALUTATION TO OUR JAWANS
To demonstrate the Company's deep
concern for those who laid down their precious lives during the Kargil
conflict and for the weal and welfare of their families. The Company contributed
a sum of Rs.1 crore towards the National Defence Fund and all the employees
of the Company also donated one day's salary towards the aforesaid fund.
I would like to pay sincere tribute to the valour of the Defence Forces
of our country who fought bravely to preserve the territorial integrity
of our nation and observing a brief silence in memory of those who made
their supreme sacrifice for this cause. |