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Business News/ Companies / Company Results/  Bharti Infratel Q1 net profit falls 21% to 704 crore
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Bharti Infratel Q1 net profit falls 21% to ₹704 crore

The company said the covid-led disruptions did not impact its financial position and performance during the June quarter as its operations were allowed as essential services

Representational image (Photo: Mint)Premium
Representational image (Photo: Mint)

New Delhi: Telecom tower company, Bharti Infratel Ltd on Monday reported a 21% drop in consolidated profit to 704 crore in the quarter ended June. The company had posted profit of 884 a year earlier, according to a company statement.

The Bharti Airtel Ltd tower subsidiary’s consolidated revenue declined 6% to 3,505 crore in the three months ended 30 June, from 3,712 crore in the same period a year ago. The fall in revenue is on the lines of estimates by brokerages and analysts.

The company said the covid-led disruptions did not impact its financial position and performance during the June quarter as its operations were allowed as essential services. It has not changed its estimates as no major challenges were faced due to lockdowns.

“It is a matter of satisfaction for all of us at Indus and Infratel to rise to the occasion in providing vital connectivity. The resilience shown by telecom industry as a vital service even in the wake of extreme exigencies like covid-19, bears well for the future potential of our infrastructure industry," said Akhil Gupta, chairman, Bharti Infratel.

Bharti Infratel had 95,801 mobile towers at the end of the June quarter. The tower company had 95,372 towers as of 31 March 2020, and has 3,170 units more from the same period last year.

On the merger with Indus Tower, where the company already owns 42% stake, Bharti Infratel said the long-stop date of the completion of the deal has been extended by the board till 31August. It did not mention any other development on the merger, following which the combined entity will be known as Indus Towers.

The firm also expressed concerns over Vodafone Idea Ltd’s sustainability hinging upon the Supreme Court's decision on the timeline of staggered payment of adjusted gross revenue (AGR)-related dues. The apex court had last week ruled out any room for self-assessment and asked the cash-strapped telco to pay 50,400 crore.

Indus Towers is a three-way joint venture between Bharti Infratel, Vodafone Idea and UK-based Vodafone Group. Bharti Infratel and Vodafone hold 42% stake each in Indus Towers. Vodafone Idea holds 11.15% stake in the mobile tower firm.

Vodafone Idea is the largest customer of Indus Towers, and thus a negative impact on the company “could have a material adverse effect on the business, results of operations and financial condition of the company," Bharti Infratel said in an exchange filing.

Bharti Infratel also said that its managing director and chief executive officer (MD & CEO) D.S. Rawat will be leaving the company effective 3 August.

The company’s earnings before interest tax, depreciation and amortisation (Ebitda) dropped 7% year-on-year (y-o-y) to 1,807 crore, representing an operating margin of 51.6%. The tower company recorded Ebitda of 1,953 crore in the same quarter last year.

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Published: 27 Jul 2020, 09:36 PM IST
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