Bharti Airtel pares morning losses; March quarter profit below estimates

NEW DELHI: Bharti Airtel, which slipped nearly 5 per cent in early morning trade on Thursday, pared some of its morning losses after the telecom major reported lower-than-expected earnings for the quarter ended March 2013.

At 09:30 am, Bharti Airtel pared some of the morning losses and was trading 0.8 per cent lower at Rs 315.55. It hit a low of Rs 305.25 and a high of Rs 318.10 in trade today.

Bharti Airtel, India’s largest telecom company by revenue and customers, reported a net profit of Rs 509 crore for the quarter ended March 2013, against a net profit of Rs 284 crore in previous quarter.

PAT was lower than ET Now poll estimate of Rs 736 crore due to higher than expected forex loss and one time additional tax outgo, say analysts. Additionally, results were hit by higher depreciation, amortisation, interest and tax.

According to Bhavesh Gandhi, sector analyst, IIFL, real disappointment from Bharti Airtel’s results has been PAT, which is much below expectations.

“We would be buyers in stock at current levels and see over 10 per cent upside. We would recommend to incrementally ‘Add’ Bharti in portfolio,” he said.

The company's revenues were in line with estimates at Rs 20,488 crore, up 1.23 per cent, as compared to Rs 20,239 crore a quarter ago.

Bharti Airtel’s EBIDTA was also in line with estimates at Rs 6,494.7 crore, up 5 per cent, against Rs 6,193.13 crore, quarter-on-quarter (q-o-q).

EBIDTA margins were at 31.7 per cent against 30.6 per cent q-o-q and above ET Now poll estimate of 30.8 per cent.

The company reported a forex loss at Rs 203 crore during March quarter against a loss of Rs 250 crore in previous quarter.