Airtel-net gets a boost from a one-off profit
NEW DELHI: Bharti Airtel Reported An Rs 107-crore Net Profit In The Fourth Quarter Of 2018-19, Helped By A One-time Exceptional Profit Of Rs 2,022 Crore That Made It In The Period. Successively, The Profit Was Higher Than The Crout Of The Rs 86 That Was Listed In The Third Quarter Of 2018-19.
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 Under Way.
" 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.
Turnover Of Airtel In The Fourth Quarter Was 6% Higher Than Rs 20.602 Crore Year-on-year. The Statement Of The Company Contained No Comments From Senior Management, Like The CEO Gopal Vittal , On The Numbers. When Contacted For A Comment On The Company's Financials And Industry Analysts
However, What Is Clear Is That The Company's Figures Remain Battered By The Aggressive Competition Being Unleashed By Reliance Jio . The New Telecom Participant Has Recently Hazard Along Airtel Concerning The Number Of Subscribers To Emerge As The Second Largest Mobile Operator In The Country Vodafone Idea .
A comparison of the fullfiscal financial numbers of Airtel and Reliance Jio showed that Reliance Jio is highly profitable when compared to its rival, despite having significantly lower revenue .
On the BSE, shares of Airtel closed the day at Rs 333, up 0.7% in a market that was down 1%. Airtel had 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 had adopted a highlycompetitive posture right from launch when it made voice-calling free for its subscribers, while pricing data very cheap .
This Strategy Caused Many Subscribers To Hold On To Jio While Older Operators Forced To Cut Prices in order to stay alive in the competition .