India’s leading telecom operator, Bharti Airtel has reported a fall of 22 per cent to Rs. 1,011 crore in the third quarter till December 2011.
The telecom service provider’s net profit fell to Rs. 1,011 crore in the quarter, a performance which is below market expectations. The loss was mainly due to increase in amortization lead by 3G licences and higher tax provision, according to experts.
The company pointed out that the rollout of its new 3G network resulted in an increased amortisation cost of Rs. 164 crore for the quarter. The company also had to pay interest cost, which rose to the level of Rs. 116 crore during the quarter.
Bharti’s customers in India reduced phone usage by about 7 per cent in the quarter following an increase in call rates by the company. It had increased call rates by about 20 percent in the country to improve margins and generate revenues.
Shares of the company fell 5 per cent to Rs. 359 on Wednesday after it announced the results for the quarter.
Meanwhile, the Income Tax department had served a notice to the country’s largest mobile services provider by subscribers for taxes amounting to Rs 1,067 crore on the company’s overseas operations earlier in January.
- Decision on gas price revision taken under RIL’s coercion: Dasgupta
- Government to pay $8.1 billion fuel subsidy in fourth quarter
- Oil firms falls as government considers export parity pricing model
- Essar Oil to sign $1 billion financing co-operation deal with CDB
- ONGC may sell stakes in deep-water blocks to Shell