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Bharti Airtel reports Q4 net loss of Rs 5327 cr

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The telecom major reported a consolidated net loss of Rs 5327 crore in Q4 March 2020 (Q4 FY20) as against net profit of Rs 107.20 crore in Q4 March 2019 (Q4 FY19).

The exceptional charge of Rs 7004 crore during Q4 March 2020 comprises of a charge on account of reassessment of regulatory cost. The reassessment is based on a recent judgment on one-time spectrum charge (OTSC) related matter of Rs 5642 crore; interest on the provision of license fee and spectrum usage charges of Rs 870.6 crore; charge on account of regulatory fees based on a recent judgment on a related matter Rs 168.1 crore; charge on account of rates and taxes in one of the subsidiaries Rs 165.9 crore; accelerated depreciation on 3G network equipment of Rs 80.8 crore and other miscellaneous items amounting to Rs 76.6 crore.

Net sales jumped 15.1% to Rs 23,722.70 crore during the period under review. EBITDA rose 51.7% to Rs 10,326 crore in Q4 FY20 over Q4 FY19. EBITDA margin stood at 43.5% as on 31 March 2020 as compared to 33% as on 31 March 2019.

The company said its average revenue per user (ARPU) rose 25.20% to Rs 154 in Q4 FY20 from Rs 123 in Q4 FY19. Growth was broad based and all segments registered healthy underlying growth, the company said. The company total customer base increased by 4.9% to 42.3 crore customers in Q4 March 2020 from 40.3 crore customers in Q4 March 2019.

Total minutes of usage on the network during the quarter were 902 billion (Bn), representing a growth of 13.3% as compared to 796 Bn in the corresponding quarter last year. Mobile Data traffic grew 74.3% to 6,688 Bn MBs during the quarter as compared to 3,836 Bn MBs in the corresponding quarter last year.

Gopal Vittal, MD and CEO, India & South Asia, said: "The quarter gone by saw healthy revenue growth of 14.4% YoY with mobile business growing at 21.8%. This was driven by two factors - sustained momentum of 4G customer additions of over ~ 12.5 Mn coupled with improved tariffs. We continue to witness strong data traffic growth of ~74.1% YoY. Going forward we remain committed to delivering a best in class customer experience even as we leverage our platform to build new revenue streams."

Offering comments on the impact of COVID-19 on the company's business, Bharti Airtel said: This situation continues to evolve and we are monitoring it closely to identify key risks and taking immediate actions to minimize any potential disruption from the pandemic to our business.

The telecom company reported a consolidated net loss of Rs 32183.20 crore in the year ended March 2020 (FY20) as compared to a consolidated net profit of Rs 409.50 crore in the year ended March 2019 (FY19). Net sales rose 8.4% to Rs 87,539 crore in FY20 over FY19.

Consolidated net debt excluding lease obligations for the company stands at Rs 88,251 crore as on 31 March 2020 compared to Rs 108,235 crore as on 31 March 2019. Consolidated net debt including lease obligations is at Rs 118,859 crore. The Net Debt-EBITDA ratio on reported basis (annualized) as on 31 March 2020 is at 2.88 times as compared to 4.15 times as on 31 March 2019.

Bharti Airtel is a leading global telecommunications company with operations in 18 countries across Asia and Africa.

Shares of Bharti Airtel jumped 4.84% to Rs 564.20. The stock hit a high of Rs 591.95 and a low of Rs 556.70 so far.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, May 19 2020. 09:18 IST
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