Bharti Infratel gains after Q3 net surges 62%

Consolidated net profit surged 62% to Rs 411 crore in the quarter ended 31 December 2013

Shares of Bharti Infratel were up over 2% at Rs 168 after the telecom tower company registered a 62% rise in consolidated profit after tax at Rs 411 crore in the quarter ended 31 December 2013, on higher investment income and lower interest expenses. Profit after tax in the corresponding quarter previous fiscal year stood at Rs 254.

Meanwhile, consolidated revenue rose marginally by 4% during the Octobet-December 2013 quarter to Rs 2,731 crore as compared with Rs 2,626 crore reported in the same quarter a year ago.

The company’s operating cash flow also increased by 30% to Rs 708 crore in the third quarter of the current fiscal year, as against Rs 546 crore reported in the year ago quarter.

Bharti Infratel, majority owned by India’s largest telecom carrier Bharti Airtel, expects operators to expand 3G networks in coming quarters as they see growth in revenue from data, its Managing Director Akhil Gupta said in a statement.

The company is also expected to benefit from a recent network-sharing deal between Bharti AIrtel and Mukesh Ambani-owned Reliance Jio.