BSNL and MTNL turn EBITDA positive
Part of: GS Prelims and GS-III – Infrastructure; Economy
- 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.
- 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.