Bharti Airtel’s net profit up by 27%
Friday, October 31, 2008
NEW DELHI: Bharti Airtel, country's top mobile operator, has posted a 27 per cent increase in its quarterly profit to Rs 2,046 crore on huge subscriber addition, but foreign exchange loss of Rs 586 crore and declining tariffs weighed on the growth rate.
Although its revenue crossed Rs 9,000 crore in the July-September quarter and customer base rose to eight crore, the company suffered a foreign exchange loss of Rs 586 crore due to a weaker rupee, which fell about nine per cent per cent against the dollar in July-September.
Bharti, in which Singapore-based SingTel owns about 31 per cent, had reported a net profit of Rs 1,614 crore in the same quarter last year.
Shares in Bharti, India's third-most valuable firm with a market value of about Rs 1.16 lakh crore, were up 0.14 per cent at Rs 615.90 on the BSE after reaching an eight per cent gain earlier.
"The company has to write mark-to-market the entire loan irrespective whether it is hedged or not. As long it is hedged, the impact will be notional."
"We hedge a significant portion of our loans. The loss of Rs 586 crore, the net finance cost on loans is due to the accounting on foreign exchange and derivatives. This happens in every quarter. When rupee appreciates, it results into a gain and vice versa," Bharti Airtel deputy CEO Akhil Gupta said.
Bharti Airtel which became cash positive for the first time, however, ruled out any move to reward the shareholders.
"There is no immediate plans to give dividend to its shareholders. There is so much of capex going forward and 3G auction coming, it is wrong time to talk about dividends," he said.
Source : Economic Times
Friday, October 31, 2008
NEW DELHI: Bharti Airtel, country's top mobile operator, has posted a 27 per cent increase in its quarterly profit to Rs 2,046 crore on huge subscriber addition, but foreign exchange loss of Rs 586 crore and declining tariffs weighed on the growth rate.
Although its revenue crossed Rs 9,000 crore in the July-September quarter and customer base rose to eight crore, the company suffered a foreign exchange loss of Rs 586 crore due to a weaker rupee, which fell about nine per cent per cent against the dollar in July-September.
Bharti, in which Singapore-based SingTel owns about 31 per cent, had reported a net profit of Rs 1,614 crore in the same quarter last year.
Shares in Bharti, India's third-most valuable firm with a market value of about Rs 1.16 lakh crore, were up 0.14 per cent at Rs 615.90 on the BSE after reaching an eight per cent gain earlier.
"The company has to write mark-to-market the entire loan irrespective whether it is hedged or not. As long it is hedged, the impact will be notional."
"We hedge a significant portion of our loans. The loss of Rs 586 crore, the net finance cost on loans is due to the accounting on foreign exchange and derivatives. This happens in every quarter. When rupee appreciates, it results into a gain and vice versa," Bharti Airtel deputy CEO Akhil Gupta said.
Bharti Airtel which became cash positive for the first time, however, ruled out any move to reward the shareholders.
"There is no immediate plans to give dividend to its shareholders. There is so much of capex going forward and 3G auction coming, it is wrong time to talk about dividends," he said.
Source : Economic Times