Bharti Airtel hits 1-year low; plunges 7% on bourses
Mumbai: Shares of Bharti Airtel on Friday hit their one-year low level, nosediving nearly seven percent on the bourses after the company reported a drop in its average revenue per user, signalling an intensification of competition in the telecom sector.
After opening firm on the bourses, shares of Bharti Airtel dropped 6.89 percent to a low of Rs 290.55 in noon trade on the BSE.
On the NSE, the shares fell nearly seven per cent to Rs 290.10 during the intra-day trade.
During the quarter, Bharti's blended average revenue per user (ARPU) was at Rs 252, down from Rs 278 in the first quarter of this fiscal. In the same quarter a year ago, ARPU was at Rs 331.
Bharti Airtel Deputy Group CEO and MD Akhil Gupta said, "with intense competition and irrational pricing in some pockets in the short term, we could see some impact on the top and bottom lines."
Analysts said despite the BSE benchmark Sensex surging 300 points, shares of the country's largest private sector telecom operator dropped on concerns of rising competition in the telecom sector and dirt-cheap tariff being offered by some of the existing as well as new players.
On the volume front, over 2.11 crore shares changed hands on both the bourses today.
Bharti Airtel reported a 13 percent increase in its consolidated net profit at Rs 2,321 crore for the second quarter ending September 30, 2009.