Bharti Airtel fell 5.28% at Rs 259.90 at 14:13 IST on BSE, with the stock extending Wednesday's 6.6% losses triggered by weak Q1 June 2012 results.
The result was announced before trading hours today, 8 August 2012. The stock slumped 6.60% to Rs 274.40 on Wednesday, 8 August 2012. The stock has fallen 11.54% in the preceding two sessions from Rs 293.80 on Tuesday, 7 August 2012.
Meanwhile, the BSE Sensex was up 62.70 points, or 0.36%, to 17,537.86.
On BSE, 19.23 lakh shares were traded in the counter as against an average daily volume of 3.05 lakh shares in the past one quarter.
The stock hit a low of Rs 258.60 so far during the day, which is also a 52-week low for the counter. The stock hit a high of Rs 276.15 so far during the day. The stock had hit a 52-week high of Rs 417 on 2 September 2011.
The stock had underperformed the market over the past one month until 8 August 2012, falling 14.65% compared with the Sensex's 0.45% rise. The scrip had also underperformed the market in past one quarter, sliding 12.92% as against 6.37% rise in the Sensex.
India's largest listed telecom company by sales has an equity capital of Rs 1898.76 crore. Face value per share is Rs 5.
Bharti Airtel's consolidated net profit, as per international financial reporting standards, fell 37.28% to Rs 762 crore on 14% increase in revenues to Rs 19350 crore in Q1 June 2012 over Q1 June 2011.
The company's monthly average revenue per user (ARPU) in the country fell 2% to Rs 185 in Q1 June 2012 over Q4 March 2012. For its African operations, Bharti reported an ARPU of $6.5 in Q1 June 2012, down from $6.7 in Q4 March 2012.
The company's consolidated revenues rose 14% to Rs 19350 crore, marked by growth of 31.5% in Africa and a strong 44.2% increase in India Mobile Data revenues.
EBITDA (Earnings Before Interest Taxes Depreciation and Amortization) margin at 30.2% was depressed due to the adverse regulatory and tax developments in India, enhanced market participation and planned accelerated investments in both India and Africa.
Consolidated operating free cash flows for the quarter was healthy at Rs 2273 crore, which represents an increase of 67.4% over the corresponding period last year. The net debt - equity ratio was at 1.38 (Q4 March 2012: 1.29) and net debt - EBITDA ratio was held at 2.54 (Q4 March 2012: 2.56).
The company said mobile revenues in India during the quarter were impacted due to the Telecom Regulatory Authority of India (TRAI) guidelines around processing fees restricted the sales of combo packs, which offered bundled service propositions to augment customer value. Indian mobile revenues were also impacted due to the service tax hike from 10.3% to 12.36%, effective 1 April 2012, causing all telecom services to become dearer by nearly 2%, with the entire additional levy being passed through to the exchequer.
The company's Africa revenues grew by 31.5%, driven by strong operational performance in the last year and favourable currency movements. However, economic and currency headwinds are presently evident in key markets, as a result of the eurozone crisis, lower aid and grants, rising inflation and political issues in some countries. With this in mind, the company intensified market operations, advertising, network rollouts, as well as new growth initiatives such as 3G, airtel money and Rwanda, the company said in statement.
Meanwhile, Bharti Airtel said that the board of its subsidiary, Bharti Infratel (BIL), at the meeting held on 8 August 2012, has appointed a committee of the board of directors (Committee of Directors) to consider the listing of the shares of Bharti Infratel. The proposed issue may include an offer for sale of shares, if desired by the existing shareholders of BIL. BIL has informed Bharti Airtel that any offering and its timing will be subject to market conditions, obtaining necessary shareholder and regulatory approvals. BIL has indicated that there can be no assurance that any offering will happen in a timely manner or at all. The final decision for the proposed issue will be taken by the Committee of Directors/the board of directors of BIL. The board of directors of Bharti Airtel in its meeting held on August 08, 2012 has constituted a Committee of its board of directors, to consider and finalise the terms and conditions with respect to participation in the offer for sale of shares upto 10% of BIL's equity share capital.
Bharti Airtel is a leading integrated telecommunications company with operations in 20 countries across Asia and Africa. Headquartered in New Delhi, India, the company ranks amongst the top 5 mobile service providers globally in terms of subscribers. In India, the company's product offerings include 2G, 3G and 4G services, fixed line, high speed broadband through DSL, IPTV, DTH, enterprise services including national & international long distance services to carriers. In the rest of the geographies, it offers 2G, 3G mobile services. Bharti Airtel had close to 261 million customers across its operations at the end of June 2012.
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