Airtel rides rural boom
India’s largest mobile phone service provider Bharti Airtel on Thursday announced an increase of 38.3 per cent in its net profit to Rs 1,976 crore, thanks to its expansion in rural areas, reports HT Correspondent.india Updated: Jan 22, 2009 22:33 IST
India’s largest mobile phone service provider Bharti Airtel on Thursday announced an increase of 38.3 per cent in its net profit to Rs 1,976 crore, thanks to its expansion in rural areas. The company had a net profit of Rs 1,429 crore for the same quarter in the last fiscal.
Its income rose to Rs 9,667 crore, up 39.9 per cent against Rs 6,950 crore for the corresponding period a year ago.
“Our rural strategy has worked very well,” said Manoj Kohli, CEO and joint managing director, Bharti Airtrel. “For us to cover more than 4 lakh villages is definitely an important factor in achieving revenue growth.”
For the nine months ended December 31, the company posted a net profit of Rs 5,811 crore, up 29.2 per cent against Rs 4,497 crore for the same period last year.
“Rural India is doing well. Agriculture incomes are growing. Government’s rural schemes are proving beneficial to farmers. What is important is that rural India does not suffer from EMI problem of auto and home loans, which urban India suffers,” said Kohli.
In the December quarter, the company added 8.3 million customers to its network. The company’s earnings before interest, tax, dividend and amortisation was up 33 per cent year-on-year at Rs 3,945 crore, while it posted a 30 per cent increase in cash profit at Rs 3,755 crore.