Mumbai: Bharti Airtel stock on Wednesday plunged over 6 percent, eroding Rs 7,367 crore from its market value, amid the company's net profit declining by 37 percent for the quarter ended June 30.
At the BSE, the stock settled 6.6 percent lower at Rs 274.40, the lowest closing since July, 2010. In intra-day, it lost 7.21 percent to Rs 272.60.
On the NSE, the scrip dropped 6.43 percent to Rs 274.90.
In the process, the telecom major's market capitalisation fell by Rs 7,367 crore to Rs 1,04,204 crore.
The stock was the worst performer among blue-chip scrips on the Sensex.
As a result, Bharti also slipped out of the top-10 list of companies in terms of market capitalisation.
Analysts said that the scrip came under heavy selling pressure following below estimates quarterly results.
"Bharti reported disappointing performance for Q1 FY13, with net profit declining for the 10th straight quarter due to higher operating costs. Overall, the results were subdued," Ankita Somani, Research Analyst (IT & Telecom), Angel Broking said.
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 today said in a statement.
First Published: Wednesday, August 8, 2012, 11:45