Airtel net zooms 89% on strong India show

Total revenue for the fourth quarter up 13.5% to Rs 22,219 cr from Rs 19,582 cr in year-ago period

Bharti Airtel, the country’s largest telecom operator by subscribers, on Tuesday reported an 89 per cent jump in consolidated net profit at Rs 962 crore for the January-March quarter, backed by strong growth in voice and data revenues. Discontinuation of freebies in the India mobile services business (54 per cent of total revenues) helped push voice realisations for each minute higher by six per cent on year-on-year. Revenue increased 13.5 per cent to Rs 22,219 crore against Rs 19,582 crore in the year-ago period.

The company accounted Rs 159 crore as integration costs due to business combination. There was a net tax provision of Rs 25.6 crore (Rs 54.2 crore on account of settlement of various disputes or uncertain tax position during the quarter and a gain of Rs 28.6 crore due to reversal of an exceptional charge in the previous quarter). A charge of Rs 50.8 crore being the share of minority interests in respect of the above two factors was also accounted.

Adjusting for these, the net profit is close to analysts’ expectations (Bloomberg consensus) of Rs 1,005 crore for the quarter. A Microsec Research note says, “The company reported exceptional loss of Rs 233.3 crore during the quarter pertaining to integration costs and onetime tax expense, barring which Bharti’s net profit would have been ahead of Bloomberg consensus estimates as well.” It said the company’s bottom line beat Microsec’s estimates.

For the year ended March, Bharti Airtel posted a 21.8 per cent rise in net profit to Rs 2,773 crore against Rs 2,276 crore in the previous year. Revenue in the year increased 11.5 per cent to Rs 85,746 crore against Rs 76,905 crore in 2012-13. Consolidated mobile data revenue jumped 93.4 per cent year-on-year to Rs 1,900 crore, accounting for a third of the growth. India revenue grew 11.6 per cent year-on-year to Rs 14,910 crore, while international revenue grew 17.2 per cent to Rs 7,511 crore for the quarter. Consolidated earnings before interest, taxes, depreciation and amortisation (Ebitda) grew 20.6 per cent over the year to Rs 7,307 crore in the quarter.  Ebitda margin rose 1.9 per cent to 32.9 per cent, driven by a 290-basis-point rise in India margins to 36.8 per cent.

STRONG QUARTER

* Consolidated net profit up 89% year-on-year to Rs 962 crore in January-March on higher call charges and increased revenue from data business

* Total revenue for the fourth quarter up 13.5% to Rs 22,219 crore from Rs 19,582 crore in year-ago period

* Consolidated mobile data revenue at Rs 1,900 crore grew 93.4% year-on-year, accounting for more than a third of the growth

* For 2013-14, net profit rose 21.8% to Rs 2,773 crore and revenue 11.5% to Rs 85,746 crore