Bharti Airtel Net Profit Up By 34%
On consolidated basis Bharti Airtel's net profit jumped by 34.61% to Rs 1170.2 crore in the current quarter compared to Rs 869.3 crore in the corresponding quarter of the previous year. The increase in the net profit was primarily due to decline in the expenditure as a percentage of sales. The expenditure has declined to 83% of the total sales against 86% in the corresponding quarter of the previous year. The company reported sharp decline in the net finance of the company by 18% to Rs 956.5 crore against Rs 1167.6 crore on yearly basis.
The company registered growth in sales by 13.33% to Rs 2305.5 crore against Rs 2029.5 crore in the corresponding quarter of the previous year. The growth in the sales can be attributed primarily to increase in the mobile services in Africa by 17.49% and by 9.92% in India on yearly basis. The company's consolidated net debt has reduced to USD 9609 mn resulting in the Net Debt to EBITDA ratio improving to 2.04 times as compared to 2.20 times at the end of the previous quarter.
On the standalone basis, the company reported growth in the net income by 11.48% to Rs 13627.8 crore against Rs 12224.4 crore in the corresponding quarter of the previous year. There was an exceptional growth in the net profit by 125% to Rs 2160.4 crore against Rs 958.8 crore, this was primarily backed by increase in the other income by Rs 176.3 crore against Rs 83 crore and the finance cost of the company almost halved to Rs 271.6 crore compared to Rs 459.7 crore in the last quarter.
Gopal Vittal, MD and CEO, India & South Asia, stated, “Our revenue momentum in India has been sustained during Q1 with a growth of 11.8%. While the pace across all segments has been satisfying, Mobile data and DTH stood out with growths of 68.2% and 20.7% respectively. The industry awaits more 3G spectrum being made available even as we look forward to the implementation of policies relating to spectrum sharing and trading. These have become essential to deliver sustained broadband growth and high quality service”.