Mumbai: Internet service provider Videsh Sanchar Nigam Ltd (VSNL) has posted a 44.57 per cent decline in net profit at Rs 780.10 crore in the financial year ended March 31, 2003, compared to Rs 1,407.40 crore recorded in previous fiscal.

The board has recommended a dividend of Rs 8.50 per share for the year, compared to Rs 12.50 per share and a special dividend of Rs 75 a share declared in financial year 2002, VSNL managing director S K Gupta said in a release.

The Internet Service Provider's total income also dropped substantially to Rs 4,812.5 crore for the year under review, compared to Rs 7,089 crore posted in the financial year 2002, Gupta said.

The Tata group company has posted a massive fall in net profit at Rs 191.10 crore in fourth quarter ended March 31, as against Rs 316.30 crore recorded in Q4 of last year.

VSNL's total income dropped to Rs 1,038.30 crore in the reporting quarter from Rs 1,776.1 crore posted during the same quarter in the financial year 2002, he said.

The company's net sales/income from operations fell to Rs 4,538.50 crore (Rs 6,508.1 crore) in financial year 2003, while that in the quarter dropped to Rs 914.6 crore (Rs 1,003 crore).

Gupta said the income from operations is lower due to "significant reduction" in settlement rates, thanks to increase in competition.

However, VSNL maintained the international long distance (ILD) traffic volume during the period and is certain that the future growth in volumes will offset with short-term impact on the industry, he opines.

PTI