new delhi, Aug. 19 -- After reporting profits for two consecutive quarters in 18 years, state-owned telecom operator Bharat Sanchar Nigam Ltd (BSNL) has returned to the red, with a net loss of Rs.1,049 crore in the June quarter. This marks a sharp reversal from the March-quarter profit of Rs.280 crore and the December-quarter profit of Rs.262 crore, according to its financial statements seen by Mint. BSNL's revenue from operations fell 24% quarter-on-quarter to Rs.5,029.6 crore, with declines across all segments-consumer mobility, enterprise, and consumer fixed access. The losses came even as the telecom operator saw a dip in total expenses, barring employee costs. Total expenses fell 9.4% sequentially to Rs.6,840 crore. Employee costs, which constitute a major 38.6% of its revenue, rose 39% on-quarter to Rs.1,940 crore. However, on a year-on-year basis, BSNL's losses narrowed during the quarter from Rs.1,542 crore in the year-ago period, helped by a 14.5% increase in revenue from Rs.4,392.6 crore, largely owing to the roll-out of 4G services at close to 100,000 sites and lower tariffs. It also witnessed a 43% on-year increase in depreciation and amortization expenses to Rs.1,940 crore. Mint has reached out to BSNL and the department of telecommunications (DoT) for comments. The story will be updated accordingly. "The outlook for the coming year will continue to show strong top-line revenue growth alongside a steady decline in operating costs-both critical to sustained profitability. However, in the near term, higher depreciation and amortization arising from recent spectrum acquisitions and heavy capex will weigh on quarterly results despite these solid fundamentals," the communications ministry said in a 27-May statement. "Although profit after tax may be subdued next fiscal year because of the sizeable capex and spectrum infusion, these investments are expected to spur accelerated growth and profitability thereafter," the ministry added. BSNL had 90.46 million mobile subscribers as of June end, 0.6 million fewer than 91.06 million as of March end, according to data from the Telecom Regulatory Authority of India (Trai). However, the subscriber base grew by nearly 5.5 million compared to June 2024, when the company had 85.6 million users....