Throughout Monday’s buying and selling session, the shares of this state-owned telecommunications firm moved down by practically 8 p.c on BSE, after the corporate talked about defaulting on Rs. 8,277 crore mortgage funds to seven banks together with SBI, PNB, and Union Financial institution of India.
Value Motion
With a market cap of Rs. 2,855 crores, at 02:27 p.m., the shares of Mahanagar Phone Nigam Restricted (MTNL) had been buying and selling within the pink at Rs. 45.32, down by round 7 p.c, as in opposition to its earlier closing worth of Rs. 48.78.
The inventory has delivered optimistic returns of practically 33 p.c over one yr, whereas round 8 p.c of unfavorable returns in a single month.
What’s the Information
As per the most recent regulatory filings, MTNL has defaulted on each principal and curiosity funds to seven main public sector banks: Union Financial institution of India (UBI), Financial institution of India (BOI), Punjab Nationwide Financial institution (PNB), State Financial institution of India (SBI), UCO Financial institution, Punjab & Sind Financial institution (PSB), and Indian Abroad Financial institution (IOB).
The overall quantity of excellent borrowing from these banks stands at Rs. 8,277 crores.
Past its financial institution borrowings, MTNL’s complete monetary indebtedness, together with short-term and long-term debt, quantities to Rs. 33,497 crores. This features a financial institution mortgage of Rs. 8,277 crore, SG Bonds value Rs. 24,071 crore, and a Rs. 1,149 crore mortgage from the Division of Telecommunications (DoT) to cowl SG Bond curiosity funds.
The defaults befell between August 2024 and February 2025, with the overdue principal funds totalling Rs. 1,450.36 crore, together with overdue curiosity of Rs. 482.97 crore.
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Earlier Information
In November 2024, the corporate defaulted on a Rs. 1,000 crore mortgage from Financial institution of India, compelling the lender to make a Rs. 200 crore provision in its financials for Q2 FY25. MTNL has been fighting monetary difficulties, reporting a lack of Rs. 3,303 crore in FY24 as a consequence of declining revenues.
As of August 2024, MTNL’s complete monetary debt stood at Rs. 31,944.5 crore. The corporate defaulted on funds totalling Rs. 5,726.3 crores, comprising a principal quantity of Rs. 5,492 crores and curiosity of Rs. 234.2 crores. Main lenders affected embrace Union Financial institution of India (Rs. 3,480.8 crore), Financial institution of India (Rs. 1,039.7 crore), and Punjab Nationwide Financial institution (Rs. 447.6 crore).
In early February 2025, the Indian authorities authorised a plan to lift ~Rs. 16,000 crore via the sale of property owned by MTNL and Bharat Sanchar Nigam Restricted (BSNL). This strategic transfer goals to deal with the mounting debt burdens of those state-run telecom firms.
Financials
MTNL reported a decline in income from operations, experiencing a year-on-year lower of practically 11.5 p.c, falling from Rs. 192 crores in Q3 FY24 to Rs. 170 crores in Q3 FY25. Likewise, throughout the identical interval, the corporate’s web loss lowered by 0.4 p.c YoY from Rs. 839 crores to Rs. 836 crores.
In regards to the Firm
Mahanagar Phone Nigam Restricted (MTNL), the state-owned telecommunications firm, is engaged within the enterprise of offering telecom providers within the geographical areas of Mumbai and Delhi.
Written by Shivani Singh
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