India's largest mobile operator Bharti Airtel today reported 13th consecutive quarter of fall in profits with about 50 per cent slump in consolidated earnings during January-March, but it said that the worst may be over as pricing stability was returning to the sector.
Net profit in the fourth quarter of 2012-13 fiscal dropped to Rs 508.6 crore crore, from Rs 1,005.9 crore a year ago on higher tax outgo and depreciation cost.
"I am pleased to see that market corrections have started with improvements in the quality of customer acquisitions and that pricing stability is returning to the sector in India," Bharti's Chairman and Managing Director Sunil Mittal said.
For the 2012-13 fiscal, Bharti made Rs 2,275.7 crore profit, its smallest in seven years. The net profit was 46.6 per cent lower than Rs 4,259.4 crore in 2011-12.
Earnings before interest, tax, depreciation and amortisation, or EBITA, margin was 31.7 per cent in the January-March quarter as opposed to 33.3 per cent a year ago.
The company's network operating costs increased 18 per cent while employee costs rose 24 per cent.
Bharti shares fell about 5 per cent soon after the results were announced, but recovered partially in an overall upbeat market to close at Rs 316.70, down 0.64 per cent.
Revenues in Q4, however, rose 9.2 per cent to Rs 20,448.4 crore from Rs 18,729.4 crore in the year-ago period. For the full fiscal, they were up 12.4 per cent to Rs 80,311.2 crore.
"Overall, the last year or so, the data ecosystem in the country is growing really well, our 3G expansion is on track... The really good news is that pricing stability seems to be returning in market place," Bharti Airtel India Joint Managing Director and CEO Gopal Vittal told reporters.
Data has grown around 22 per cent year on year and the customer base stands at 43.49 million.
