Bharti Airtel has tanked 4% at Rs 263, extending its previous day’s 7% fall after reported its tenth straight quarter of net profit decline due to higher operating costs.
The company said consolidated net profit fell to Rs 762 crore for its fiscal first quarter ended June 2012 from Rs 1,215 crore a year earlier as stiff competition squeezed margins. EBITDA (earnings before interest, tax, depreciation and amortization) margin went down by 310 basis points to 30.2%.
“EBITDA margin of Africa operations scaling down substantially was a big negative surprise as the company is continuously maintaining its stance to focus on to improve EBITDA margin of Africa business,” said Ankita Somani, research analyst-IT & telecom at Angel Broking
“Currently, it is difficult to see major improvement in Bharti’s domestic business anytime soon as significant cut has been taken by the companies of 3G tariffs and lot of regulatory uncertainties are prevailing,” said analyst.
The stock opened at Rs 276 and hit a two-year low of Rs 261 on the NSE. As many as a combined 11.67 million shares have already changed hands on the counter in morning trades, against an average sub 8 million shares that were traded daily in past two weeks.