Bharti Airtel shares dip 6%, lowest closing in over 5 years
Mumbai: Falling for the fifth day in a row, shares of Bharti Airtel on Thursday plunged over 6 percent, bringing down its market capitalisation below Rs 1 lakh crore, amid the company's net profit declining by 37 percent for the quarter ended June 30.
Shares of the company settled 6.4 percent lower at Rs 256.85 on BSE, the lowest closing in over five years. Intra-day, the stock was 7.25 percent down to Rs 254.50.
At NSE, the scrip closed at Rs 257.20, down 6.25 percent.
In the process, the company's market value declined by Rs 6,665 crore to Rs 97,539 crore.
The stock was ejected out of the list of top 10 companies by market capitalisation, after reporting below market expectations results yesterday.
The scrip was the biggest loser on the Sensex, which closed 40 points lower.
"Bharti Airtel reported disappointing performance for Q1 FY2013, with net profit declining for tenth straight quarter due to higher operating costs," Angel Broking said in a report.
According to media reports, a number of brokerages have cut the company's rating after the company announced its earnings.
Bharti Airtel's net profit declined by 37 percent to Rs 762.2 crore in the April-June, 2012 quarter as stiff competition squeezed margins.
The company's net profit stood at Rs 1,215.2 crore in the same period last fiscal.
"Sustained hyper competition has driven this industry to become structurally defective with abnormally high rotational churn. The industry is witnessing high levels of gross customer additions resulting in net additions of less than 10 percent.
"This has a significant bearing on the telecom industry's profitability," Bharti Airtel had said Wednesday.