'Airtel move positive for investors’

Bharti Airtel’s plan to raise fund will not only help the company reduce debt, but also improve profitability. The company’s total debt at the end of FY18 stood at Rs 1.11 lakh crore as compared with Rs 0.66 lakh crore in FY13, according to Bloomberg.

This has doubled the company’s interest expenses in the past five years to Rs 6,459 crore. The improvement in leverage ratio and reduction in competitive intensity is expected to rekindle investor confidence in the stock. Airtel’s stock slipped 40 per cent since the beginning of the year compared with 4 per cent gain of the benchmark index.