Bharti Airtel Net Profit Down For 7th Straight Quarter

[Gachibowli_Diwakar]

India's largest cellular service provider Bharti Airtel has reported a decline in its net profit for the seventh straight quarter.

[b]Bharti's net profit for the second quarter was down 15.49 per cent from Rs. 1,215.2 crore in the June quarter[/b]. On a yearly basis, the company posted a 38.17 per cent fall in second quarter consolidated net profit to Rs. 1,027 crore due to higher interest outgo and costs related to the roll-out of its 3G network.

[b]In the corresponding quarter ended September 30 last year, the company had registered a consolidated net profit of Rs. 1,661 crore.[/b]

The company's consolidated revenues in the second quarter rose 1.78 per cent to Rs. 17,276 crore against Rs. 16,974.9 crore in the first quarter. Analysts had expected Bharti's revenues to rise 2.6 per cent to Rs. 17,409.4 crore in the second quarter. On a yearly basis, total sales were up by 13.38 per cent this quarter against Rs. 15,231 crore in Q2, FY'11.

[b]Bharti Airtel 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. 115 crore during the reporting period[/b]. The impact of the recent judicial pronouncement on regulatory matters has been prudently considered in the quarter's financials, it added.

The company reported a forex loss of Rs. 239 crore against Rs. 170 crore (quarter-on-quarter) on account of currency fluctuations.


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