New Delhi: Bharti Infratel Ltd, which sold shares to the public for the first time last month, said third-quarter profit rose 31% as it added telecom towers.
Net profit rose to Rs.254.1 crore in the three months ended 31 December from Rs.194.4 crore in the year ago, the company said in a statement on Thursday.
The tower unit of Bharti Airtel Ltd said third-quarter revenue rose 8% to Rs.2,626.4 crore.
The company added 2,377 towers in the quarter to take its total to 81,389 and added 7,635 co-locations—where infrastructure is shared between telecom service providers—taking the total to 156,336 tenancies.
Revenue sharing per tower per month rose 3% to Rs.67,136.
“Despite relatively low capex deployment by telecom operators last year due to the uncertainties in the telecom sector, our results reflect the significant incremental gains from increased sharing of our infrastructure,” said Akhil Gupta, vice-chairman and managing director, in the statement.
The earnings missed analysts’ expectations.
Parent Bharti Airtel will report its third-quarter earnings on Friday.
Analysts said it was difficult to gain an insight into the parent’s earnings from Bharti Infratel’s results.
The operating margin widened to 37.4% in the three months ended 31 December from 37% in the year earlier.
Bharti Airtel has effected a number of management changes over the past month.
Sanjay Kapoor, chief executive officer (CEO) of India and South Asia, is expected to leave the company by the end of February.
Kapoor will continue to be on the board of Bharti Infratel’s joint venture unit Indus Towers Ltd as well as Bharti Global Ltd.
Kapoor will be replaced by Gopal Vittal who will take over as CEO for India, with South Asia becoming part of Airtel’s international operations.
On Wednesday, Bharti said that Manoj Kohli would become managing director of the company’s international operations with founder Sunil Mittal becoming the executive chairman. Kohli was CEO, international.
The Bharti Airtel board will approve the changes for Kohli and Mittal on Friday.