Bharti Airtel shares gain over 5% post Q2 results
Mumbai: Shares of telecom major Bharti Airtel on Wednesday rose by over 5 percent, adding Rs 7,135 crore to its market capitalisation, after the company's operating performance came better-than-expectation.
Bharti Airtel's scrip ended the day at Rs 359.05, up 5.23 percent from its previous close on the BSE. In intra-day, shares of the country's largest mobile operator surged 6.68 per cent to Rs 364.
At the NSE, the scrip jumped 5.28 percent to Rs 359.20.
Following the rally in the stock, the company's market value rose by Rs 7,135 crore to Rs 1,43,526 crore.
The stock was the best performer on both the key indices -- Sensex and Nifty.
"For Q2 FY14, Bharti Airtel's revenue as well as EBITDA came better-than-expectations, while bottomline was below our expectations due to higher finance charges as well as a one-time exceptional charge arising from a new regulatory levy at one of its international operations," said Ankita Somani, Research Analyst -Telecom, Angel Broking.
The country's largest mobile operator Bharti Airtel today reported 15th consecutive quarter of fall in profits with a 29 percent slump in September quarter but a better operating margin brings hopes that the worst may be over for the industry.
Profit dropped to Rs 512 crore in the quarter ended September 30 from Rs 721.2 crore a year earlier, mainly on account of increase in finance costs and forex losses due to rupee depreciation, the company said in a BSE filing.
"The continued depreciation of the Indian rupee has resulted in forex restatement and derivative losses of Rs 342 crore versus Rs 25 crore loss for Q2 FY13," the company said.
The margin of earnings before interest, tax, depreciation and amortisation, or EBITA, was 32 per cent in the quarter compared with 30.6 percent a year ago.
Consolidated revenue grew 10 percent to Rs 21,342.8 crore from Rs 19,408.5 crore a year earlier.
In the stock market, the BSE barometer index Sensex settled 104.96 points higher at 21,033.97.
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