Bharti Airtel drops 4% as Jio halves profit
India's largest private sector telecom company Bharti Airtel's shares dropped 3.87% on BSE Sensex during pre-opening trade on Wednesday. The shares were trading at Rs 304.10 per share, down Rs 12.25 after the company announced a 55% drop in its net profit for the quarter ended December 31, 2016.
India's largest private sector telecom company Bharti Airtel's shares dropped 3.87% on BSE Sensex during pre-opening trade on Wednesday. The shares were trading at Rs 304.10 per share, down Rs 12.25 after the company announced a 55% drop in its net profit for the quarter ended December 31, 2016.
On Tuesday, Airtel said that its net profit for the given quarter stood at Rs 504 crore as against Rs 1,108 crore for the same period of last year and Rs 1,460.7 crore in the second quarter ended September 30, 2016.
Airtel said that its consolidated EBIDTA or pure earnings rose 1.11%, at Rs 8,570 crore while EBIDTA margins grew 1.5%, at 36.7% on the back of its African operations. Consolidated revenues for the given quarter dropped 3%, at Rs 23,336 crore.
Gopal Vittal, MD and CEO, India & South Asia, said: “The quarter has seen turbulence due to the continued predatory pricing by a new operator."
He said, "The present termination costs at 14 paise which are well below cost has resulted in a tsunami of minutes terminating into our network. This has led to an unprecedented year on year revenue decline for the industry, pressure on margins and a serious impact on the financial health of the sector."
ALSO READ: War with Reliance Jio bites: Bharti Airtel's Q3 profit drops 55%
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Power of Compounding: How many years will it take to reach Rs 3 crore corpus if your monthly SIP is Rs 4,000, Rs 5,000, or Rs 6,000
Power of Compounding: Salary Rs 25,000 per month; is it possible to create over Rs 2.60 crore corpus; understand it through calculations
Reduce Home Loan EMI vs Reduce Tenure: Rs 75 lakh, 25-year loan; which option can save Rs 25 lakh and 64 months and how? Know here
Top 7 Large and Mid Cap Mutual Funds with Best SIP Returns in 5 Years: No. 1 fund has turned Rs 15,000 monthly SIP investment into Rs 20,54,384; know about others
New Year Pick by Anil Singhvi: This smallcap stock can offer up to 75% return in long term - Check targets
09:18 AM IST