A one-off profit gives Airtel a surprise profit boost in the fourth quarter
NEW DELHI: Bharti Airtel Reported An Rs 107 Crore Net Profit In The Last Quarter Of The 2018-19 Financial Year, Aided By A One-time Exceptional Profit Of Rs 2,022 Crore That Made It In The Period.
The Company Which Is In The Middle Of A Rs 25,000 Crore Rights Issue, Refused To Divulge Key Metrics Gain.
It Said That These Cannot Be Revealed As The Rights Issue - Which Ends On May 17 - Is Currently Underway.
" Exceptional Item During The Quarter Ended March 31, 2019 Mainly Comprises ... Credit Of Rs 2,022 Crore Pertaining To Re-assessment Of Levies, Based On A Recent Pronouncement Related To The Manner Of Determination Of Such Levies," The Company Said In A Statement.
Profit For The Company In The Same Period ( Fourth Quarter ) Or Fiscal 2017-18 Was Rs 83 Crore. Sequentially, The Profit Was Higher Than The Rs 86 Crore Recorded In The Third Quarter Of 2018-19.
Airtel's Income in the Fourth Quarter was up 6% at Rs 20,602 crore against Rs 19,394 crore in the same period of 2017-18.
The Company's Results Statement Did Not Carry A Comment From Senior Management, Such As CEO Gopal Vittal, On The Numbers.
When Contacted For A Comment On The Company's Financials, Industry Analysts Said That A View Cannot Be Firmed Up Yet In The Absence Of Key Metrics.
However, What Is Clear Is That The Company's Figures Remain Battered By The Aggressive Competition Being Unleashed By Trust Jio. The New Telecom Newcomer Came Along Recently Airtel In Terms Of Subscriber Numbers To Emerge As The Country's Second-largest Mobile Operator, Behind Vodafone-Idea.
A comparison of the full-fiscal financial numbers of Airtel and Trust Jio shows the Mukesh Ambani company as highly profitable when compared to its rival. This despite having significantly lesser revenue.
Jio’s Income in fiscal 2018-19 stood at Rs 45,782 crore with a profit of Rs 2,964 crore. Against this, Airtel made a full-year India standalone profit of Rs 409 crore against total Income of Rs 81,335 crore.
On The Bombay Stock Exchange , Shares Of Airtel Closed The Day At Rs 333.45, Up 0.6% In A Market That Was Down 1%.
Airtel Announced The Rights Issue To Raise Funds In Order To Make Fresh Investments While Also Looking To Cut Debt, Which Stands At Over Rs 1 Lakh Crore.
The Financials Of The Telecom Industry Have Been Under Severe Strain Since The Launch Of Services By Jio In September 2016. The New Entrant Adopted A Highly Competitive Posture Right From The Launch When It Made Voice-calling Very Cheap.
This Strategy Saw Many Subscribers Latch On To Jio As The Older Operators Were Forced To Cut Tariffs In Order To Stay Relevant.