Bharti Airtel stock down nearly 1% after profits dip in Q2
Mumbai: Bharti Airtel's scrip on Wednesday settled with nearly one percent loss after the company reported its 11th consecutive quarter of profit dip as rising costs and competition squeezed margins.
Shares of the country's largest telecom operator ended at Rs 271.10, down 0.88 percent on the BSE. During the day, the scrip dropped 1.4 percent to Rs 269.65. At NSE, the stock settled 0.79 percent lower at Rs 271.60.
"Bharti Airtel's revenue and EBITDA was above our and street expectations, however, the profit after tax was below consensus due to higher tax rate and forex loss," Daljeet Singh Kohli, Head of Research, IndiaNivesh Securities said.
The company's net profit in July-September dropped 29.7 percent to Rs 721.2 crore from Rs 1,027 crore in the year ago period. The profit in the second quarter was 5 percent lower than Rs 762.2 crore earning in April-June period of current fiscal.
Total income of the company during the reported quarter was up by 17.4 percent at Rs 20,283.2 crore compared to Rs 17,276.4 crore for the corresponding period in previous financial year.
The company said network cost had increased so as competition, putting pressure on margins.