Bharti stock down on weak Q1 numbers

The stock of the country's largest mobile-phone operator by subscribers tumbled today on news that it had reported a 32 per cent drop in net profit for the quarter ended June 30, 2010.

Bharti Airtel saw consolidated net profit come down to Rs1,682 crore from Rs 2,475 crore last year on the back of higher interest costs, a foreign-exchange loss and intense competition.

Revenue, however, grew 17 per cent to Rs 12,231crore from Rs 10,414 crore last year on the back of new subscriptions and the addition of the recently acquired African operations of Kuwaiti telecom operator Zain.

The stock began well in early morning trade, up 3 per cent from the previous day's close, which was Rs 324.30. But it soon collapsed to levels of Rs 323-324 a piece, when news of a weak result came during mid-morning trade. The stock is hovering in the region of Rs 323.50 at the moment.