Bharti profits drop 29% despite rising revenues

2 May 2012

Despite rising revenues, Bharti Airtel has recorded a drop in net profit for the fourth quarter of its financial year, ended 31 March 2012. Total revenue for the quarter rose to INR187.294 billion (USD3.517 billion), up from INR184.767 billion the previous quarter and INR162.930 billion in the corresponding period of 2011. For the full-year, revenues totalled INR714.508 billion, up from INR595.383 billion a year earlier. Conversely, net profit for the year fell by 29.6% to INR42.594 billion, whilst profit for the quarter fell by 28.2% year-on-year to INR10.059 billion. The group’s earnings before interest, tax, depreciation and amortisation (EBITDA) were INR62.329 billion for the quarter (up 13.7% y-o-y) and INR237.123 billion for the year (+18.1%). CAPEX for the three-month period was reduced to INR23.801 billion from INR45.483 billion in the year-ago period.

The company reported a total of 241.148 million wireless customers at the end of March 2012. India made up the lion’s share of Bharti’s customer base with 181.3 million subscribers, whilst Bangladesh and Sri Lanka had 5.2 million and 1.6 million users respectively. Across its 17 African operations, Airtel claimed a total of 53.1 million subscribers.

India, Bharti Airtel