BackAirtel Q4 net profit rises 2.8% to Rs1,290 crore
Revenue rose 8.4% to Rs24,980 crore, compared with the average estimate of Rs24,700 crore
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Mumbai: Bharti Airtel Ltd. reported earnings that beat analysts’ estimates after consumers used more data offered by India’s largest wireless operator.
Net income at the company controlled by billionaire Sunil Mittal rose 2.8% to ₹ 1,290 crore ($194 million) in the quarter ended 31 March, the company reported on Wednesday, exceeding the ₹ 1,150 crore average estimate compiled by Bloomberg. Revenue rose 8.4% to ₹ 24,980 crore, compared with the average estimate of ₹ 24,700 crore.
Bharti is preparing to fend off billionaire Mukesh Ambani’s new carrier, which is planning to enter the industry this year with fourth-generation services. Even with a billion subscriptions, Indian phone companies are under mounting pressure to consolidate as a dozen carriers battle for market share.
Concerns about added competition brought on by the entry of Jio, the telecom unit of Ambani’s flagship Reliance Industries Ltd., prompted Fitch Ratings to downgrade its 2016 outlook for the Indian phone industry to negative from stable in November.
Bharti shares rose 3.5% to ₹ 373.05 in Mumbai on Wednesday, ahead of earnings. The stock has gained 9.6% versus the 3.6% drop in the 13-stock S&P BSE Telecom Index this year. Earnings were announced after trading hours.
Revenue from data services rose 43.7% to ₹ 4,430 crore, according to the statement. Bharti plans to buy back as much as ₹ 1,430 crore of shares, it said in a separate filing. Bloomberg
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