Bharti Airtel Ltd., India's first private and largest integrated telecom services provider, reported a sharp fall in its fourth-quarter net profit on an Indian GAAP basis, both consolidated and stand-alone, due to higher depreciation and amortization cost, interest costs, dividend distribution tax and higher deferred tax charge.
Consolidated Results
The New Delhi-based company posted a fourth-quarter consolidated net profit, after minority interest, of Rs.508.60 crore or Rs.1.340 per share, down 49 percent from the Rs.1,005.90 crore or Rs.2.650 per share reported in the fourth-quarter of last year.
Results for the quarter under review were impacted by higher depreciation and amortization cost of Rs.515 crore, net interest costs of Rs.132 crore, dividend distribution tax of Rs.37 crore and higher deferred tax charge due to hike in surcharge of Rs.96 crore, the company said.
Quarterly net income from operations increased by nine percent to Rs.20,448.40 crore from the Rs.18,729.40 crore in the corresponding quarter last year, led by strong growth of 71 percent in mobile internet in India, 24 percent in Digital TV, 17 percent in Airtel business and 13 percent in Africa. Other operating income was Rs.12 crore, compared with Rs. 9.40 crore last year.
During the quarter, income from the Mobile Services segment grew 7 percent to Rs.11,285.30 crore, while that of Telemedia Services rose by 5 percent from last year to Rs.962.10 crore. Income for the quarter from Mobile Services Africa' was Rs.6,064.70 crore, an increase of 13 percent over last year.
Income from Airtel Business segment rose by 17 percent to Rs.1,314.30 crore, whereas Tower Infrastructure Services income increased 12 percent to Rs.2,718.90 crore. Income from DTH segment stood at Rs.441.90 crore, up by 24 percent from last year.
The company's average income per person (ARPU) stood at Rs.193 in the March quarter, a sequential improvement of Rs.8 in this quarter, fueled by increased customer usage at 455 minutes, and rate stability.
For the full fiscal year, the company reported a consolidated net profit, after minority interest, of Rs.2,275.70 crore, down by 47 percent from the Rs.4,259.40 crore a year ago. Total income, including other operating income, stood at Rs.80,359 crore, compared with Rs.71,505.80 crore a year ago, an increase of 12 percent.
Stand-alone Results
Bharti Airtel's fourth-quarter stand-alone net profit fell by 31 percent to Rs.1,084.40 crore from the Rs.1,574.30 crore for the quarter ended March 31, 2012. Income from operations increased by 7 percent to Rs.11,548.30 crore from Rs.10,757.20 crore recorded last year.
For the April 2012-March 2013 period, the company's stand-alone net profit was Rs.5,096.30 crore, down by 11 percent from the Rs.5,730.00 crore last year. Income from operations was Rs.45,350.90 crore, compared with Rs.41,603.80 crore a year-ago, an increase of 9 percent.
The company's Board recommended a dividend of Re.1 per equity share of Rs.5 each for the fiscal year 2013.
As of March end, Bharti had 271.2 million customers across 20 countries, up by eight percent year-on-year.
The company said its unit Bharti Airtel Holdings (Singapore) Pte. Ltd. and Warid Group reached an agreement, wherein, Bharti will acquire 30 percent equity stake of Warid in Airtel Bangladesh Ltd. With this, Bharti will own 100 percent of Airtel Bangladesh Ltd. In January 2010, Bharti had acquired 70 percent stake in Warid Telecom, Bangladesh.
Chairman Sunil Bharti Mittal said, "I am pleased to see that market corrections have started with improvement sin the quality of customer acquisitions, and that pricing stability is returning to the sector in India. With Africa over its peak or organic investments we are optimistic about the potential for improved market shares and margin expansions. Finally, on the data front, we are now witnessing consistent quarter on quarter growth across all geographies."
At the BSE, Bharti Airtel shares are currently trading at Rs.319.60, up Re.0.85 or 0.27 percent on a volume of around 870,000 shares.
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