Bharti Airtel shares fall after brokers cut price targets

Bharti Airtel shares fall after brokers cut price targetsTelecom service providers, Bharti Airtel's fell 2.4 percent on Thursday dropping further following a fall of 6.5 percent in the previous trading secession. The shares fell after broker houses cut their price target for the shares.

Bharti Airtel has reported a fall of 22 per cent to Rs 1,011 crore in the third quarter till December 2011. Credit Suisse said in a report that it has reduced its price target to Rs 330 from Rs 375 but maintained its rating at neutral.

The telecom service provider's net profit fell to Rs 1,011 crore in the quarter, a performance that is below market expectations. The loss was mainly due to increase in amortization lead by 3G licenses 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.