Bharti Infratel posted its first quarter results on Tuesday and the company’s net profit has grown by 71% on a yearly basis. For the June quarter the company registered net profit of Rs 756 crore as compared to Rs 442 crore for the same period a year ago.
This unusual growth can be attributed to the increase in the tenancy ratio during the period as operators rented more site to improve coverage.
The consolidated revenue of Bharti Infratel rose 7% to touch Rs 3211 crore compared to Rs 3003 crore in Q1 of 2015. At the end of the fiscal quarter, the company’s operating free cash flow stood at Rs 958 crore versus Rs 797 crore for the same period lasst year showing an improvement of 20%.
Both Ebit and Ebitda have also improved during this quarter. While Ebit improved 11% to reach Rs830 crore as against Rs 745 crore in Q2 of 2015, the Ebitda of country’s sole listed tower company was up by 9% from Rs 1408 crore in Q1, 2016 from Rs 1295 crore the compared period of previous fiscal.
“Indian Telecom industry is going through consolidation, we believe this would be good for the industry in the long run as the sector would require large investments by the operators in future to cater to the ever increasing data demand,” said Akhil Gupta, Chairman, Bharti Infratel.
“We are also seeing some early signs of implementation of the Government’s initiative on Smart City which we believe would provide opportunities to infrastructure companies like ours. Bharti Infratel and Indus Towers being the leaders are fully geared to serve our customers’ demand and to look at the new opportunities coming up on the infrastructure front,” he added.