Bharti Airtel's quarterly profit drops 49 percent

May 02, 2013

Bharti Airtel, India's biggest telecommunications company, reported Thursday that quarterly net profit fell by nearly half to 5.1 billion rupees ($94.7 million) on higher taxes and operating costs.

The company said revenue for the January-March final quarter of its fiscal year rose 9.2 percent from a year earlier to 205 billion rupees ($3.8 billion).

However, a tax increase of 1.3 billion rupees ($24.8 million) for the quarter over the previous year cut into profits, accounting for about half of the steep year-on-year drop.

Higher operating costs, including investments in network expansion, also contributed to the fall in earnings.

Bharti Airtel has invested heavily in its Africa networks, and growth in that market has not been rapid enough to offset the cost of the buildup. Africa revenues were up 12.6 percent in the quarter. The company said Africa revenue growth is expected to further pick up in coming quarters.

"With Africa over its peak of organic investments, we are optimistic about the potential for improved market shares and margin expansions," said Sunil Bharti Mittal, the company's chairman.

India's mobile phone companies have been in a price war for several years that has dented earnings but Bharti said the situation eased in the latest quarter.

Explore further: Smart Spending: Why investors are applauding Amazon earnings

not rated yet
add to favorites email to friend print save as pdf

Related Stories

India's HCL profit jumps 43%, shares gain

Jan 17, 2012

India's fourth-biggest software services firm, HCL, Tuesday posted a 43 percent jump in quarterly net profit, beating forecasts, thanks to stronger outsourcing demand and a weak rupee.

India's Infosys posts profit dip on slowdown

Apr 15, 2009

India's Infosys Technologies said Wednesday its consolidated net profit for the fiscal fourth-quarter rose 29 percent from a year earlier, but fell sequentially due to the global slowdown.

India's largest IT firm TCS Q3 profit up 23%

Jan 17, 2012

India's biggest outsourcing company, Tata Consultancy Services, reported on Tuesday that net profit rose 23 percent in the third quarter, matching forecasts, thanks to a rise in orders.

Recommended for you

Airbnb to expand tax collection efforts

1 hour ago

Online lodging operator Airbnb is expanding its efforts to collect local taxes, responding to complaints that it competes unfairly with the hotel sector.

Jay Z to acquire Wimp music service

3 hours ago

US rap star Jay Z will make a $56-million foray into the music streaming business by taking over the Norwegian service Wimp, its shareholders confirmed Friday.

How can Google snap its stock out of its stupor?

9 hours ago

Google has turned into a stock market laggard as the shift to mobile devices has lowered the Internet search leader's digital ad prices and the company's expensive investments in far-out technology has trimmed ...

Amazon surprises with profit despite fierce spending

19 hours ago

Amazon surprised the market Thursday with a quarterly profit far better than anticipated for the online giant known for pouring money into projects such as original video programs and delivery drones.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.