Bharti Airtel’s profits hit a new low with a 72 per cent decline to Rs 284 crore during the third quarter ended December 31, 2012, compared with Rs 1,011 crore during the same period last year. This comes even as the revenue increased 9.5 per cent to Rs 20,239 crore. This is the 12th straight quarter with declining profits.
The company said that the profit was impacted by higher depreciation and amortisation cost (Rs 316 crore), net interest costs (Rs 284 crore), forex fluctuation losses (Rs 261 crore), and tax provisions (Rs 109 crore).
Sunil Bharti Mittal, Chairman and Managing Director, Bharti Airtel Ltd, said: “Market conditions have been challenging in recent quarters due to pricing pressures and rising input costs, which have put enormous pressure on the sector and consequently the margins.” The company’s share price was down 2.62 per cent to close at Rs 330.5 on the BSE.
Earlier this week, Idea Cellular posted a 13.72 per cent rise in net profit at Rs 228.57 crore while Reliance Communications posted a 43 per cent fall in net profit to Rs 105 crore.
Mittal said that the worst seems to be getting over with corrections taking place in customer acquisition practices and the tariffs. Airtel’s revenues from data services now account for 5.7 per cent of its overall revenues compared to 3.5 per cent last year. Average revenue per user from data services has increased 9 per cent quarter-on-quarter to Rs 47 a month. Overall average revenue per user, including voice, however remained near flat at Rs 185 a month.
“Going ahead, we are positive on the Indian operations but there are concerns regarding the African operations which might weigh upon Bharti Airtel’s performance,” said Ankita Somani, Research Analyst–Telecom, Angel Broking.