Bharti Airtel quarterly net profit plunges 9.6 percent at Rs 688.9 crore

Analysts had expected the company to report net profit of 6.57 billion rupees.

Written by PTI | New Delhi | Published: July 31, 2013 9:42:39 am

Telecom giant the Sunil Mittal-led Bharti Airtel today reported a 9.6 per cent fall in net profit at Rs 688.9 crore for the first quarter ended June 30,2013.

The company had reported a net profit of Rs 762.2 crore in the corresponding period last financial year. This is a 14th consecutive fall in quarterly profits of the company.

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Total income of the company,however,was up 9.3 per cent at Rs 20,299.5 crore for the reported quarter as against Rs 18,570.3 crore in the same period last fiscal.

“Our results for the quarter reflect the overall stability of our operations,and demonstrate the potential for growth,particularly seeing robust data growth across all geographies,” company’s Chairman Sunil Bharti Mittal said in a statement.

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The company’s mobile revenues in the country grew on the back of jump in ARPU (average revenue per user) to Rs 200 in Q1 of 2014,up by Rs 16 over corresponding period last year.

“Results for Airtel India reflect rationality returning to the sector which needs to be complemented by a more enabling regulatory environment for a deeper penetration of telecom and broadband services,” Mittal added.

Derivative and exchange fluctuation losses during the quarter stood at Rs 534 crore,mainly caused by rupee depreciation,compared to gains of Rs 160 crore in the same period last year.

The net debt of the company has been reduced to Rs 58,380.6 crore as on June 30,2013 on account of additional equity infusion of Rs 6,796 crore by Qatar Foundation Endowment. Shares of the company were trading up 0.86 per cent at Rs 324.20 apiece at 0955 hrs on the BSE.

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The data costumer base of the company grew 20 per cent to reach 46,584,of which 6,796 are 3G customers. Data users comprise 24.4 per cent of the total customer base of the company,the statement said.

Airtel said data now contributes 7.4 per cent of the mobile revenues. India EBITDA margin improved from 31.9 per cent last year to 34.9 per cent,while International margins improved from 24 per cent to 25.4 per cent,it added. The company also said its board has approved the sale or transfer of its data centre undertaking (Business) by way of slump sale to its newly incorporated wholly-owned subsidiary Nxtra Data Limited.

Bharti Airtel Ltd reported 9.6 per cent fall in quarterly profit on higher costs and foreign exchange losses,the 14th consecutive quarter of declining profits for India’s top telecommunications carrier.

Bharti Airtel,the world’s fourth-biggest cellular carrier by customers,said net profit fell to 6.89 billion rupees ($114 million) for its fiscal first quarter to end-June,from 7.62 billion rupees reported a year earlier.

Despite the decline,the results beat expectations. Analysts had expected the company to report net profit of 6.57 billion rupees,according to Thomson Reuters I/B/E/S.

Bharti Airtel,which is nearly a third owned by Southeast Asia’s top phone carrier,SingTel,operates across 20 countries in Asia and Africa.

(Reuters inputs)

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