Bharti Airtel profit falls 38% | business | Hindustan Times
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Bharti Airtel profit falls 38%

Bharti Airtel's African safari continues to bleed. India's largest telecom service provider on Friday announced a 38% fall in its profits year-on-year for the second quarter of this fiscal year at Rs 1,027 crore ($210 million) from Rs 1,661 crore for the same period a year earlier. HT reports.

business Updated: Nov 04, 2011 22:33 IST
HT Correspondent

Bharti Airtel's African safari continues to bleed. India's largest telecom service provider on Friday announced a 38% fall in its profits year-on-year for the second quarter of this fiscal year at Rs 1,027 crore ($210 million) from Rs 1,661 crore for the same period a year earlier.

"During the quarter, the US dollar appreciated against the rupee and several African currencies, resulting in forex restatement losses of Rs 239 crore. The roll out of 3G has resulted in higher amortisation costs (impact of Rs 164 crore) and increased net interest costs (higher by Rs 115 crore)," said a Bharti Airtel statement.

Bharti's consolidated revenues rose to Rs 17,276 crore from R15,231 crore in a year ago quarter.

The company's expansion has come at a price. Last year, Bharti Airtel acquired mobile operations in 15 African countries from Zen in a $9 billion debt-funded deal. The company also took a debt of more than $3 billion for 3G and broadband spectrum.

Average revenue per user (ARPU) per month fell 9% to Rs 183 for the quarter.

"India has achieved double-digit growth fuelled by non voice businesses. The arrest of continuously declining prices in India augurs well for the telecom industry," said Sunil Mittal, chairman of Bharti Airtel.