Bharti Airtel's quarterly profit drops 49 percent

May 2, 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: India's Infosys posts profit dip on slowdown

Related Stories

India's Infosys posts profit dip on slowdown

April 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 HCL profit jumps 43%, shares gain

January 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 largest IT firm TCS Q3 profit up 23%

January 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

Smart home heating and cooling

August 28, 2015

Smart temperature-control devices—such as thermostats that learn and adjust to pre-programmed temperatures—are poised to increase comfort and save energy in homes.

Smallest 3-D camera offers brain surgery innovation

August 28, 2015

To operate on the brain, doctors need to see fine details on a small scale. A tiny camera that could produce 3-D images from inside the brain would help surgeons see more intricacies of the tissue they are handling and lead ...

Team creates functional ultrathin solar cells

August 27, 2015

(Phys.org)—A team of researchers with Johannes Kepler University Linz in Austria has developed an ultrathin solar cell for use in lightweight and flexible applications. In their paper published in the journal Nature Materials, ...

Interactive tool lifts veil on the cost of nuclear energy

August 24, 2015

Despite the ever-changing landscape of energy economics, subject to the influence of new technologies and geopolitics, a new tool promises to root discussions about the cost of nuclear energy in hard evidence rather than ...

0 comments

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.