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Singtel Q3 net profit down 8.3% at Rs 3,603 cr

Last Updated: Thursday, February 14, 2013 - 15:50

Singapore: Telecom giant SingTel, which holds around 32 percent stake in Bharti Airtel, on Thursday reported 8.3 percent decline in net profit at Rs 3,603 crore due to transformation initiatives, increased depreciation and exceptional charges for third quarter ended December 31, 2012.

The company reported net profit attributable to shareholders of Rs 39,28.29 crore, at exchange rate of Rs 43.54 per Singapore Dollar, during the same period a year ago.

"Net profit (was) lower by 8 percent due to costs associated with transformation initiatives, increased depreciation and exceptional charges," SingTel said in a statement.

SingTel reported 5 percent increase in depreciation and amortisation cost at Rs 2,282 crore during the reported quarter from Rs 2,172.85 crore in corresponding period a year ago.

The exceptional charges for Singtel group stood at Rs 2,917.75 crore during the quarter.

The exceptional charges include ex-gratia payments of its Australian subsidiary, Optus for the restructuring of its workforce and accelerated depreciation charges related to Globe's network modernisation and IT transformation programs.

Singtel group revenues declined by 4.8 percent at Rs 20,025 crore during the reported quarter compared to Rs 21,041.36 crore posted for the corresponding period last fiscal.

"The performance of the Group demonstrates the resilience of our core operations and focused execution even as we recognise the challenges in the various markets. We are executing our transformation plan to grow in the new digital era, exploiting opportunities in mobile data and enterprise ICT services," SingTel Group CEO Chua Sock Koong said.

The company saw impact of Bharti Airtel financial performance and weak Indian rupee on group's revenue as well.

"The Group’s regional mobile associates, in particular Telkomsel (Indonesian associate of SingTel) and AIS (Thai Associate of SingTel), recorded robust growth, which were partially offset by lower earnings from Airtel and the weaker regional currencies," SingTel statement said.

Airtel's pre-tax contribution to the Group declined 46 percent to Rs 304.88 crore, mainly due to the weaker Indian rupee, increased depreciation and amortisation, higher net financing costs and fair value losses.

SingTel said Airtel South Asia posted an 8 percent increase in revenue driven by strong voice traffic growth but the growth was offset by higher costs from expanded network and 3G and LTE (4G technology) investments.

Airtel Africa registered a 6 percent growth in EBITDA from robust growth in mobile voice traffic, it added.


First Published: Thursday, February 14, 2013 - 15:50
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