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Videsh Sanchar Nigam (VSND)

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Tuesday 26 October, 1999

Videsh Sanchar Nigam

2nd Quarter & Interim Results

VIDESH SANCHAR NIGAM LIMITED
22 October 1999

                    UNAUDITED FINANCIAL RESULTS (PROVISIONAL)
                     FOR THE QUARTER ENDED 30 SEPTEMBER 1999

                                                          (Rupees in million)
                    For the  For the                             For the Year
                    quarter  quarter   For the half year ended          ended
                      ended    ended   -----------------------       31.03.99
                   30.09.99 30.09.98   30 Sept.99   30 Sept.98      (Audited)
                (Unaudited)(Unaudited) (Unaudited)  (Unaudited)

1. Net Sales/
   Income from
   operations         16632    16812        33530        32482         68315

2. Other Income        1223     2205         2134         3443          3441
  
   Total Income       17855    19017        35664        35925         71756

3. Total Expenditure
   (including Prior
    Year)             12231    12414        24556        24621         51812

4. Interest               0        0            0            0             0

5.(a)Gross Profit(+)   5624     6603        11108        11304         19944
   Loss(-) after interest 
   but before depreciation 
   and taxation(1+2)-(3+4)

5.(b)Gross Profit
   (excluding other
   income)             4401    4398          8974         7861        16503

6. Depreciation         224     188           467          373          800

7. Provision for 
   Taxation            1934    2168          3624         3571         5894

8. Net Profit(+)/
   Loss(-) 5(a)-(6+7)  3466    4247          7017         7360        13250

9. Paid-up Equity
   Share Capital        950     950           950          950          950

10.Reserves excluding     -       -             -            -        53256
   revaluation reserves 
   (as per balance sheet of
   previous accounting year)

11.Earnings per share(Rs.) -      -        147.73        154.95      139.47
                                        (Annualised)  (Annualised)


1. The above results were taken on record by the Board of Directors of the
company at its Meeting held on 22 October 1999.

2. Interest on GDR Funds has been considered as income earned during the
construction period and adjusted against carrying cost of the assets as done in
the past.

3. Figures of previous year have been regrouped wherever necessary.

4. ICO Global Communications (Holdings) Limited filed a voluntary petition for
reorganisation under Chapter 11 of the United States Bankruptcy Code on 27
August 1999 in which the Company has invested a sum of USD150 million
(equivalent to Rs.5179 million).  The Chapter 11 filing enables ICO Global to
continue normal business operations while it develops a Plan of Reorganisation
under the protection of this chapter.  ICO has recently proposed a restructuring
plan to certain prospective investors which envisages reduction in the equity
stake of the existing investors to at least 2%.  Pending approval of the
restructuring plan by the court, no provision has been considered by the Company
for probable diminunon in the value of investment in ICO Global which is
indeterminate at this stage.

5. The Company has made a detailed assessment of risks posed to its operations
by the year 2000 (Y2K) problem and has initiated, since 1997, appropriate risk
mitigation measures.  VSNL has adopted BSI PD-2000 standard as definition of
Y2K-Readiness.  Although, most of the system are Y2K-ready, full readiness, is
expected to be achieved by November 1999. The company has a budget estimate of
approx. Rs.363 million for the purpose.  The detailed contingency plans are
under preparation.

S.K. Gupta
Chairman and Managing Director

                       

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