Bharti Airtel reports first net profit in 4 years
Telecommunication services provider Bharti Airtel on Tuesday reported its first quarterly net profit in four years, thanks to lower competition and a rise in voice call rates.
The New Delhi-based company announced that its consolidated net profit jumped to Rs 610 crore in the three months ended December 31, 2013; from Rs 284 crore in the corresponding three-month period of the previous year.
The company's net income before exceptional items jumped to Rs 832 crore. Revenue jumped to Rs 21,939 crore, up 13.3 per cent from Rs 19,362 crore reported in the year-ago period.
However, the company failed to meet expectations of analysts, who had projected a quarterly net profit of Rs 1,044 crore for the company.
Even though the rise in net profit reported by Airtel was lower than analysts' average prediction, shares of the company gained as much as 2.8 per cent in morning trade on Wednesday.
Meanwhile, Bharti Airtel's current joint MD and chief executive Gopal Vittal has been promoted to the post of managing director for India and South Asia as part of the company's restructuring program. Akhil Gupta has been elevated to the position of chairman of Bharti Infratel and vice-chairman of Bharti Enterprises. The new structure will take effect from April 1, 2014.
Bharti Airtel, which is India's No. 1 telecom operator, is nearly a third owned by Southeast Asia's leading phone carrier SingTel.