Shares of telecom services provider have rallied up to 8% each after mobile market leader Bharti Airtel has reported increase in the average revenue per user (ARPU) in domestic market during the quarter ended June 30, 2013 (Q1).
Bharti Airtel has surged 8.4% to Rs 348, followed by Idea Cellular (up 6.5% at Rs 167) and Reliance Communication (up 6% at Rs 134) on the Bombay Stock Exchange.
Bharti Airtel in a media release said that mobile revenues in India grew on the back of ARPU moving to Rs 200 in Q1’14, up by Rs 16 over corresponding period last year.
The voice rate increase (up from 35.68p last year to 36.39p) coupled with higher usage per customer (up from 433 minutes last year to 455) has enabled this improvement in ARPU, it added.
Meanwhile, Bharti Airtel has reported a 9.6% year-on-year (yoy) drop in its consolidated net profit at Rs 689 crore for Q1 FY2014, on account of foreign exchange losses due to the weaker rupee.
The company said derivative and exchange fluctuation losses during the quarter were RS 534 crore, mainly caused by the Rupee depreciation, compared to gains of Rs 160 crore in the same period last year.
Results for Airtel India reflect rationality returning to the sector which needs to be complemented by a more enabling regulatory environment for a deeper penetration of telecom and broadband services, said Sunil Bharti Mittal, Chairman, Bharti Airtel.
Bharti Airtel has surged 8.4% to Rs 348, followed by Idea Cellular (up 6.5% at Rs 167) and Reliance Communication (up 6% at Rs 134) on the Bombay Stock Exchange.
Bharti Airtel in a media release said that mobile revenues in India grew on the back of ARPU moving to Rs 200 in Q1’14, up by Rs 16 over corresponding period last year.
The voice rate increase (up from 35.68p last year to 36.39p) coupled with higher usage per customer (up from 433 minutes last year to 455) has enabled this improvement in ARPU, it added.
Meanwhile, Bharti Airtel has reported a 9.6% year-on-year (yoy) drop in its consolidated net profit at Rs 689 crore for Q1 FY2014, on account of foreign exchange losses due to the weaker rupee.
The company said derivative and exchange fluctuation losses during the quarter were RS 534 crore, mainly caused by the Rupee depreciation, compared to gains of Rs 160 crore in the same period last year.
Results for Airtel India reflect rationality returning to the sector which needs to be complemented by a more enabling regulatory environment for a deeper penetration of telecom and broadband services, said Sunil Bharti Mittal, Chairman, Bharti Airtel.
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