Bharti Airtel profit down 29 percent on rupee woes (Update)

Oct 30, 2013 by Kay Johnson

Bharti Airtel, India's largest telecommunications company, said Wednesday the weak rupee contributed to a 29 percent slump in quarterly profit.

Net profit for the July to September quarter was 5.1 billion rupees ($83 million). The company absorbed currency losses of 3.4 billion rupees ($55 million).

However, solid revenue growth in rupee terms plus higher operating profit margins boosted the company's stock, which rose 6 percent on the Bombay Stock Exchange.

Bharti Airtel said its mobile Internet revenue doubled from a year earlier, driving overall revenue up 10 percent to 213 billion rupees ($3.5 billion).

Operating profit margins also improved to 32.0 percent in the quarter from 30.6 percent, driven by expansion of Indian mobile data business and an increase in subscribers in Africa.

Like many Indian companies, Bharti Airtel is weighed down by loans it took out in dollars, which the depreciated rupee makes more expensive to pay back. The rupee is now hovering at about 61.5 to the dollar, 13 percent lower than its January average.

The company said it had consolidated net debt of $9.7 billion.

Bharti Airtel's profit growth has slowed for several quarters but it is expanding in Africa and Bangladesh and recently passed the 50 million mark for data service customers in India, chief financial officer Sarvjit Dhillon said.

He said that high maintenance and energy costs as well as regulation are increasing expenses across the board in India's telecoms industry and warned that rate increases might be inevitable because of the weak rupee and India's high inflation.

Explore further: Judge approves $450 mn deal in Apple ebook suit

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

Related Stories

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.

Infosys profit down on visa investigation

Oct 11, 2013

Indian IT outsourcing giant Infosys posted a fall in quarterly profit Friday after setting aside funds for a visa-abuse investigation in the United States. Still, the company upgraded its revenue forecast for the year, pleasing ...

Infosys profits up slightly despite currency woes

Jul 12, 2013

Indian software outsourcing giant Infosys posted slightly higher quarterly profit Friday and maintained its revenue growth forecast despite the weak rupee and uncertainty about U.S. visas for its employees.

India's Mahindra Satyam posts strong profit growth

Feb 01, 2012

India's software outsourcer Mahindra Satyam on Wednesday posted a near five-fold jump in its third quarter net profit, beating market forecasts, as margins were boosted by a fall in the rupee.

Recommended for you

Dish restores Turner channels to lineup

Nov 21, 2014

Turner Broadcasting channels such as Cartoon Network and CNN are back on the Dish network after being dropped from the satellite TV provider's lineup during contract talks.

'Call of Duty' blasts past $10 bn in sales

Nov 20, 2014

Blockbuster military shooter video game "Call of Duty" has blasted past $10 billion in lifetime sales, propelled by demand for the latest installment in the 11-year-old franchise.

Square's point-of-sale service goes global

Nov 20, 2014

Financial services startup Square is taking aim at cash registers across the globe, making its point-of-sale software available internationally in English, Spanish, French and Japanese.

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.