Bharti Airtel net profit declines by 38 %
04 Nov 2011
Hit by higher interest costs and foreign exchange losses, the country's largest mobile-phone operator by subscribers Bharti Airtel posted a 38-per cent decline in consolidated net profit at Rs 1,027 crore for the quarter ended September 30, 2011.
This is the GSM operator's seventh straight quarterly drop in net profit. The New Delhi-based firm has posted a net profit of Rs1,661 crore for the comparable period of the previous financial year, it said in a statement.
During the quarter, the US dollar appreciated against the Indian rupee and several African currencies, resulting in forex restatement losses of Rs 239 crore. The rollout of 3G has resulted in higher amortisation costs (impact of Rs 164 crore) and increased net interest costs (higher by Rs 115 crore).
The consolidated total revenues for the quarter rose 13.4 per cent to Rs 17,270 crore over last year. This is the first full quarter of comparable consolidated results post the Africa acquisition.
Currency fluctuations led to foreign exchange losses of Rs 239 crore for the quarter versus profit of Rs 249 crore in the year ago quarter.
''This year is progressing well for Bharti Airtel. India has achieved double digit growth fueled by non voice businesses," Sunil Bharti Mittal, Chairman & Managing Director, Bharti Airtel, said in a statement.
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