NEW DELHI: Bharti Infratel’s net profit dropped 17% on year in the fiscal second quarter as its finance income slumped while costs, mainly on rent and fuel, rose.
The telecom tower company’s consolidated net profit for July-September period came to Rs 638 crore. Net finance income shrank to Rs 10.9 crore, from Rs 247.2 crore a year earlier.
Consolidated revenue rose 11% on a like-to-like basis to Rs 3,648 crore, the company said in a statement on Monday.
Earnings before interest, tax, depreciation and amortisation for the first quarter rose 12% on-year to Rs 1,634 crore, while earnings before interest, tax, depreciation were up 15% on-year to Rs 1,021 crore. The company sees an upside in increased network investments announced by carriers, and from government’s smart cities program which will allow network providers to create usable infrastructure.
“Indian telecom has embraced the data centric model and is emerging as the showcase of digital technology with operators rolling out 4G networks and India planning a leadership role on upcoming 5G technology and associated applications,” Akhil Gupta, Chairman, Bharti Infratel Ltd., said.
“Leading operators have announced enhanced investment plans towards improvising digital infrastructure during the recently concluded India Mobile Congress. The Government of India’s Smart Cities program presents additional opportunity to create infrastructure for sharing on a non-discriminatory basis. All of this is good for the sector at large,” he added, while saying that the company was well positioned to take a fair share of the market.
The company had a total tower base of 90,955, including its 42% stake in Indus Towers. In the second quarter, it added 1,687 co-locations taking the total count to 220,008 as of September-end. Co-locations are locations where it has deployed the mobile telecommunications antennas of multiple service providers on a single structure.
Consolidated expenses for the quarter totalled Rs 2,014.7 crore, up 10% on year. The largest components of the expenses were power and fuel, amounting to Rs 1,259.3 crore. The other key expenses incurred were rent of Rs 310 crore, repair and maintenance.
Bharti Infratel stock rose 2.5% to close at Rs 429.9 on Monday on the BSE, where the benchmark rose 0.33%. The results were declared after market hours.