Bharti Airtel, India's top mobile phone carrier, posted a bigger-than-expected 41.01% fall as weaker margins from its African operations and currency fluctuations took a toll. The net profit was posted at Rs 1,303 crore for the third quarter December 2010 as compared to Rs 2,209 crore in the corresponding quarter in the previos year.
The total income increased to Rs 15,781.8 crore for the quarter ended December 31, 2010, up 52.87% from Rs 10,323.5 crore for the third quarter in the previous year.
The profits weighed heavily by the interest costs that stood at Rs 747 crore and the rebranding cost for the new logo and tune cost the company Rs 340 crore. The company also repaid $400 million of their net debt in the third quarter and the restatement losses were posted at Rs 400 crore, according to a television channel.
The spectrum charges were reported at Rs 80 crore.
The company saw a 20% decline in its standalone net profit at Rs 1,848 crore for the third quarter ended December 31, 2010 as compared to Rs 2,312 crore in corresponding quarter of previous fiscal. Net sales grew 9% to Rs 9,564 crore from Rs 8,756 crore, year-on-year.
The outlook for India's mobile market -- the world's second biggest and the fastest growing by wireless customers -- has improved after prices steadied last year following cut rate competition which sent call pricing tumbling in late 2009.
But Africa remains a worry for Bharti where it acquired the loss-making telecoms operations of Zain in 15 countries in a $9-billion deal in June to become the world's fifth-biggest wireless carrier.
The New Delhi-based firm that operates in 19 countries across Asia and Africa with 199.6 million mobile customers at end-December competes in India with 14 other companies including Reliance Communications and Vodafone.
Shares in Bharti, valued at about $26 billion, erased an early fall of 3.3% and climbed 3 per cent to Rs 323.80 as analysts said operational metrics seemed to be getting back on track.
Investors are awaiting the take-off of third-generation (3G) mobile services that would boost carriers' revenue from data in India where voice services contribute close to 90% of the revenue for cellular companies.
