Airtel Q3 net falls 72%; Kohli, Vittal face uphill task
Bharti Airtel on Friday reported a decline in profit for the 11th consecutive quarter as net profit fell by 72% year-on-year to Rs.284 crore during October-December from Rs.1,011 crore a year ago, with higher costs dragging results. HT reports. Interest hitUpdated: Feb 02, 2013 01:44 IST
Bharti Airtel, India's largest telecom service provider, on Friday reported a decline in profit for the 11th consecutive quarter as net profit fell by 72% year-on-year to Rs.284 crore during October-December from Rs.1,011 crore a year ago, with higher costs dragging results.
This is set to make the task difficult for Gopal Vittal, the new head of India operations and for Manoj Kohli, if and when he is elevated to the position of head of both India and Africa operations.
Revenues, however, rose 9.5% to Rs.20,239 crore during the quarter against Rs.18,477 crore in the same period last fiscal year.
The company has attributed the decline in profits to higher depreciation and amortisation cost (Rs.316 crore), net interest costs (Rs.284 crore), losses from currency fluctuations (Rs.261 crore) and tax provisions (Rs.109 crore).
Bharti is facing stiff competition in the domestic market that continues to impact its margins.
This is the last result during the tenure of Sanjay Kapoor, outgoing CEO, India and South Asia.
"Market conditions have been challenging in recent quarters due to pricing pressures and rising input costs," said Sunil Mittal, chairman and managing director, Bharti Airtel.
"However, the worst seems to be getting over with corrections taking place in customer acquisition practices and the tariffs."