02:00 pm - Saturday 18 November 2017

Bharti Airtel reports a 9.6 percent fall in net profit in Q1

By insightVAS - Wed Jul 31, 1:22 pm

Bharti Airtel recorded a 9.6 percent fall in net profit at Rs 688.9 crore for the April – June quarter of the year. This is a 14th consecutive fall in quarterly profits of the company.

The company had reported a net profit of Rs 762.2 crore in the corresponding period last fiscal.

However, total income of the company was up 9.3 percent 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.

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.

The data consumer base of the company increased by 20 percent to 46,584, of which 6,796 are 3G customers. 24.4 percent of the total customer base of the company are data users. Airtel said data now contributes 7.4 percent of the mobile revenues.

India EBITDA margin improved from 31.9 percent last year to 34.9percent , while International margins improved from 24 percent 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.

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