Bharti Airtel shares slip post Q1 results

NEW DELHI: Shares of Bharti Airtel declined as much as 1.40 per cent in early trade on Wednesday after the telecom major reported its smallest profit in 18 quarters as the price war triggered by newcomer Reliance Jio led to a massive 75 per cent fall in its April-June earnings. The company announced its financial results on Tuesday post market hours.

Bharti Airtel posted a consolidated net profit of Rs 367 crore for quarter ended June 30, 2017 against Rs 1,462 crore in the corresponding quarter a year ago.

The scrip was trading 0.81 per cent down at Rs 424.15. Shares of the company opened at Rs 428.50 and touched a high and low of Rs 430 and Rs 421.65, respectively, in trade so far. Benchmark BSE Sensex was up 52 points, or 0.16 per cent, at 32,281.

Topline figures slipped 14 per cent to Rs 21,958 crore from a year earlier as data and voice rates fell. It was higher than Rs 21,935 crore in the quarter ended March, which some analysts said indicated slight easing of pressure after three successive quarterly declines. Revenue from India dropped 10 per cent on year.

ARPU of Bharti Airtel slipped 2 per cent on a quarter-on-quarter basis to Rs 154 per month.

At present, Motilal Oswal has ‘Buy’ rating on the stock with target price of Rs 435. “We will revisit our estimates post the earnings call,” the brokerage house said in a research note.

Consolidated net debt of the company decreased to Rs 87,840 crore from Rs 91,400 crore in the previous quarter ended March 31, 2017.