Mahanagar Telephone Nigam Ltd.'s share price came out of its three-day fall and rose on Tuesday following the company's approval to reduce employee costs by offering voluntary retirement scheme.
An exchange filing said that the company has approved a proposal of reduction in employee cost by offering voluntary retirement scheme substantially on Gujarat Model (with reduced Ceiling of Ex-Gratia) to the employees (both Executives and Non executives) of age 45 Years and above, so as to make the organisation lean and also reduce the staff cost.
For the quarter ended September, the company reported Rs 145.96 crore as employee benefit expense as against Rs 148.09 crore in the same quarter a year ago.
Before Tuesday's rise, the stock had fallen nearly 8% in three sessions.
On Tuesday, MTNL share price rose as much as 4.2% to Rs 53.50 before paring gains to trade 2% higher at Rs 52.42 at 9:35 a.m. This compares to a 0.2% decline in the Nifty 50.
It has risen 55.72% on a year-to-date basis. Total traded volume so far in the day stood at 1.9 times its 30-day average. The relative strength index was at 50.58.
No analyst covered by Bloomberg tracks the company.
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