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New Delhi, October 31: India’s largest telecom company, Bharti Airtel on Tuesday posted a net profit of Rs 343 crore for the September quarter. The company’s profits declined for the sixth straight term. Various industry experts observed the company’s profits were badly hit after Reliance Jio successfully gained a significant share in the telecom market.
The September quarter net profit of 2017-18 fiscal is the lowest since January-March 2013. Similarly, the company’s revenue fell 11.7 per cent to Rs 21,777 crore during the second quarter of the current fiscal, from Rs 24,651.50 crore in the year-ago period.
The net profit was 6.5 per cent lower compared to Rs 367 crore seen in the June quarter, but a whopping 76.5 per cent drop over Rs 1,461 crore logged in the corresponding period of last fiscal.
“The financial stress in the industry continues due to double digit revenue decline and will be further accentuated by the reduction in IUC (Interconnect Usage charges) rates in the next quarter,” PTI quoted Gopal Vittal, CEO, India.
The company added that consolidated revenues for the just-ended quarter, at Rs 21,777 crore, represented a year on year drop of 10.4 per cent (reported drop of 11.7 per cent) on an underlying basis when adjusted for Africa and Bangladesh divested operating units and tower asset sale.
“Airtel remains committed to its goal of increasing revenue market share in this competitive environment by providing superior customer experience and strategically investing behind building more data capacities,” Vittal said.
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