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Bharat Sanchar Nigam Limited (BSNL) will deliver healthy operating cash flows on a quarterly basis as the state-run telecom operator prioritises operational performance over net profit margins, Union Minister of Communications Jyotiraditya Scindia announced Monday.
Speaking after chairing BSNL's Strategic Review and Planning Meeting 2025-26, Scindia emphasised that investors and stakeholders should focus on cash flow metrics rather than bottom-line figures, citing the impact of record capital expenditure on depreciation costs. "On a quarterly basis, we will post healthy operating cash flows. We are all committed to that cause," the minister declared, outlining a performance framework centred on operational efficiency rather than traditional profit metrics. "The important thing is to look at the operating margin and operating cash flows, not necessarily the bottom line," Scindia said, highlighting that depreciation represents accounting adjustments rather than actual cash outflows. BSNL demonstrated substantial operational improvement last year, with operating margins increasing 2.5 times from 2,395 crore to approximately 5,100 crore, reflecting the company's enhanced operational efficiency. The minister positioned customer satisfaction as the cornerstone of BSNL's growth strategy, arguing that operational metrics and profitability would naturally follow improved service quality. "Customer satisfaction is what is most important. If you are able to achieve customer satisfaction, growth of customer base, up-selling and cross-selling of products, then operating cash flow and net profit will automatically flow," he explained. Scindia revealed significant disparities in average revenue per user (ARPU) across BSNL's operational circles, ranging from 40-45 in some regions to over 175 in others. The company plans to identify and replicate success stories from high-performing circles to lift overall ARPU levels. "There's a great degree of variance, but the important thing is to identify success stories and replicate them across circles," he noted, indicating plans for systematic knowledge transfer between regions. ARPU improvements will be achieved through enhanced customer service, better customer relationship management (CRM), and strategic focus on customer retention and expansion. Rejecting traditional target-setting approaches, Scindia emphasised embedding customer satisfaction as an organisational philosophy rather than pursuing numerical benchmarks. "It is futile to give targets. It is important to ensure there is a philosophy of customer satisfaction within the organisation," he stated. "If that philosophy becomes reality, you will see greater market share, better honours, better top line, and cost structure containment." (ANI)
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