Bharti Airtel , the country's largest telecom player's December quarter net profit declined 1.5% to Rs 1,027 crore quarter-on-quarter on the back of high interest charges and costs related to the roll-out of 3G network.
The drop has also been attributed to higher tax provisioning in the quarter. Tax rate was at 32.5% year-to-date.
This is the eighth straight quarter for which Bharti has reported a decline in net profit.
Shares of the telco reacted to the results and declined 4% to Rs 366.30.
The Sunil Mittal led company in an earnings statement said the roll-out of its 3G network resulted in a higher amortisation cost of Rs 164 crore for the quarter, while its net interest cost rose to Rs 116 crore during the quarter under preview.
Meanwhile, sales of the company grew 7% to Rs 18477 crore boosted by better realization rates.
The company's overall customer base stood at 243 million across 19 countries.
Monthly average revenue per user (ARPU), a key metric for telecom carriers, from Bharti's Indian operations rose to Rs 187 during the reporting quarter from Rs 183 in the September quarter.
Debt-equity ratio of the company increased to 1.38 during the December quarter compared to 1.33 in the previous quarter. During the quarter, the company also amortised Rs 164 crore towards the payment made for the 3G license fee.
"I am pleased that investments in branding and networks continue to be our focus in India, as we enhance customer experience for voice quality and cater to the ever increasing demand for data. These investments are resulting in healthy growth of Mobile revenues," said Bharti Airtel chairman and managing director Sunil Bharti Mittal
Source: www.moneycontrol.com
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