Shares of Bharti Airtel fell as Q3 profit misses estimates. The stock plunged as much as 2.3 per cent to Rs 483.50, lowest since December 6, 2017.
India's biggest mobile carrier posted smaller-than-expected quarterly net profit after the country's telecom regulator had more than halved the interconnection fees last year.
Q3 revenue from mobile services in India fell 22.2 per cent to Rs 10,751 crore. Interconnect usage charges (IUC) cut drove 17 per cent q-o-q drop in India wireless EBITDA, severely impeding the profitability of India business, Nomura said. in note. The brokerage has maintained 'buy' rating on the stock.
According to analysts, while the consolidated EBITDA was in-line, sub-par financials of India mobile business pose risk to the brokerage's forecast earnings for Bharti Airtel. Up to Thursday's close, the stock had risen 57.7 per cent in 12 months.