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Bharti Airtel fell as much as 1.3% after the price war with Reliance Jio led to a 75% drop in net profit for the company at Rs 367 crore for the three months ended June. Net profit in the January-March quarter was nearly Rs 373 crore.
Reliance Jio’s attractive offers forced the incumbent operators to match the new entrant's schemes, resulting in 34% lower realisations from the voice segment on a year-on-year basis. Pricing pressure on the data front was even worse. Data realisations were also down by 73% over the corresponding period last year. Click Here for detailed earnings
Profit on a consolidated basis, which includes the company's Africa operations and its Indian satellite TV business among others, also fell to Rs 367 crore ($57.01 million) in the three months to June 30, while revenue fell 14% to Rs 21,958 crore.
ARPU of Bharti Airtel slipped 2% on a quarter-on-quarter basis to Rs 154 per month.
At 10:40 am, the scrip was trading 0.56% lower at Rs 425.2 as against 0.2% rise in BSE Sensex. Shares of the company opened at Rs 428.50 and touched a high and low of Rs 430 and Rs 421.65, respectively, in trade so far.