The net profit of India's leading mobile service provider, Bharti Airtel, declined by 8% to Rs 2,055 crore for the three month period ended March 31, 2010 as against Rs 2,239 crore during the same period of 2009.

Tough rivalry among subsisting and fresh entrants has seen players cut call rates and launch plans like per second billing, which has eaten into the gross profits of telecommunication companies across the industry.

But, the company's total revenues in January-March quarter increased by just 2% Rs 10,055.7 crore.

During the period under review, Bharti added 8.8 million mobile users.

In contrast, for the fiscal ended March 2010, Bharti Airtel's net profit soared 7% to Rs 9,102.6 crore as compared to Rs 8,469.9 crore in 2008-09.

Total revenues during the fiscal also rose 7% to Rs 39,615 crore.

Mr. Akhil Gupta, MD of Bharti Enterprises and a director of Bharti Airtel, stated that the temporary stage of irrational pricing is over in the segment and it expects close Zain deal at the earliest.

As on March 31, 2010, the company has 137.6 million clients across India, Sri Lanka and Bangladesh, an increase in the overall customer base of 41% over 2009.

The Bharti shares dropped 2% in morning trade to Rs 292 before making a recovery to Rs 298.10 around 11 a. m. (With Inputs from Agencies)