MTNL announced its fourth quarter financial results reporting loss of Rs 83.8 crore which the company attributed to increased staff costs. MTNL had posted a profit of Rs 173.73 crore during the corresponding period last year.

The staff expenses during this quarter have gone up from Rs 302.38 crore to Rs 650.78 crore i.e. by Rs 348.4 crore as compared to the corresponding quarter of the previous year. During this quarter, as a result of merger of 50 per cent of DA with basic pay, there is an increase of Rs 218.72 crore in various allowances, House Rent Allowance being the major component of such increase,” said MTNL.

For the fiscal year 2008-09, the firm posted profit of Rs 214.82 crore, registering a 63.39 percent drop compared with Rs 586.89 crore of the same quarter a year ago. Total income during the year fell marginally to Rs 4,576 crore from Rs 4,882 crore.