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BSNL and MTNL turn EBITDA positive

  • IASbaba
  • January 13, 2021
  • 0
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BSNL and MTNL turn EBITDA positive

Part of: GS Prelims and GS-III – Infrastructure; Economy

In news 

  • The State-owned undertakings Bharat Sanchar Nigam Ltd. (BSNL) and Mahanagar Telephone Nigam Ltd. (MTNL) have turned EBITDA positive in first 6 months of this financial year.

Key takeaways 

  • EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization.
  • EBITDA is a measure of profits.
  • It is a metric used to evaluate a company’s overall financial performance. 
  • EBITDA is now commonly used to compare the financial health of companies and to evaluate firms with different tax rates and depreciation policies.
  • However, EBITDA is not a substitute for analysing a company’s cash flow and can make a company look like it has more money to make interest payments than it really does.
  • It also ignores the quality of a company’s earnings and can make it look cheaper than it really is.

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