Bharti Infratel Q1 net up 29%

Revenue rose 8% to Rs 2,843 cr during the quarter as against Rs 2,622 cre reported in the corresponding quarter last year

Telecom tower company Bharti Infratel, on Thursday, reported a 29% increase in consolidated net profit at Rs 463 crore in the quarter ended June 2014 backed by better tenancy, as compared with Rs 358 crore reported in the corresponding quarter previous year.

Revenue rose 8% to Rs 2,843 crore (consolidated) during the quarter as against Rs 2,622 crore reported in the corresponding quarter last year.

Consolidated EBITDA (earnings before interest, taxes, depreciation, and amortization) rose 13% to Rs 1185 crore as compared with Rs 1046 crore in the corresponding quarter last year. Its operating margin stood at 41.7% at the end of April-June quarter 2014, the company said in a statement.

During the quarter, the company added 410 new towers taking its total tower base to 83,778. Average tenancy ratio has also improved to 2.02 at the end of April-June quarter, as against 1.99 till March 2014.

"One of the key focus areas for the industry as well as the Government is internet connectivity across India. Industry expects clear road map for spectrum auctions in all bands, spectrum sharing and trading. All these steps shall accelerate the growth of data networks, users and usage which should result in growing demand for towers and higher shaing by operators. Bharti Infratel with its superior network footprint and service quality standards has the potential to be a major beneficiary of this growth," Akhil Gupta, Chairman, Bharti Infratel, said in a statement.

The board of directors of the company has declared an interim dividend of Rs 4.50 per share.

Bharti Infratel shares were down 3.32% to last trade at Rs 260.85 at the end of Thursday on the Bombay Stock Exchange (BSE).