Bharti Airtel Q1 profit dives 31% to Rs 1,462 crore

Telecom major Bharti Airtel on Wednesday reported around 31 per cent decline in consolidated net profit at Rs 1,462 crore for the first quarter of 2016-17 mainly due to high capital expenditure during the period. The company had reported a net profit of Rs 2,113.2 crore in the same period a year ago. “Net Income for the quarter stands at Rs 1,462 crore compared to Rs 2,113 crore in corresponding quarter last year.

Q1’16 Net Income of Rs 2,113 crore has been re-instated to Ind-AS from previously reported IFRS figures which includes an exceptional gain of Rs 556 crore on account of this reinstatement,” Airtel said in a statement. As per IFRS format, the net profit was Rs 1,554.3 crore in April-June 2015-16. 

Total consolidated income from operations of Airtel in the reported quarter increased by 7.9 per cent to Rs 25,572.9 crore from Rs 23,680.8 crore in the year-ago period. The consolidated revenues in the reported quarter grew on an underlying basis, adjusted for Africa divested operating unit and tower assets sale, the statement said. Consolidated mobile data revenues at Rs 4,640 crore grew by 34.1 per cent on year-on-year basis. Its capital expenditure spiked 23 per cent year-on-year to Rs 4,925 crore in the quarter under review. Airtel said that its India revenues for in the reported quarter grew by 10.3 per cent at Rs 19,155 crore compared to corresponding period of 2015-16 due to healthy growth of 9.1 per cent in Mobile, 11 per cent in Homes Services, 22.2 per cent in Digital TV and 10.4 per cent in Airtel Business on yearly basis.

“The year has begun well with revenue growth of 10.3 per cent Y-o-Y and continued revenue market share gains. In continuation of our Project Leap announcement, we have now transparently opened up our entire mobile network to our customers,” Bharti Airtel MD and CEO for India and South Asia Gopal Vittal said. The company’s consolidated net debt excluding the deferred payment liabilities to the Department of Telecom and finance lease obligations decreased to Rs 46,534.92 crore ($6,891 million) from Rs 50,316.6 crore ($7,451 million) in the previous quarter.

The net debt of the company at the end of June 30, 2015 was Rs 68,134.5 crore. However, there was increase in net interest cost. “Net interest costs of Rs 1,631 crore have risen from Rs 1,124 crore in the corresponding quarter last year largely due to higher spectrum interest costs,” Airtel said. Mobile Data revenues of Airtel in India grew by 35.1 per cent to Rs 3,500 crore from Rs 3,525 crore in a year led by increase in the data customer base by 19.1 per cent and traffic by 54.9 per cent.