Bharti Infratel Q1 Profit Dips 4%, Firm Blames Consolidation

Bharti Infratel, the telecom infrastructure arm of Bharti Airtel, has reported a 4% decline in its net profit for the qurter ended June 31, 2018. Its profit dipped to Rs 638 crore in the period as against Rs 664 crore for the saame aperiod a year ago.

The company attributed this shortage to the consilidation in the industry over the last year. Many operators including RCom, Tata Teleservices, Aircel etc either shut their shops or merged with some bigger operators.

On a quarterly basis, however, there is a slight profit registered by the company. In the March quarter, Bharti Infratel’s net profit was Rs 606 crore.

In terms of total revenue for the consilidated firm, there is something to cheer for. It reported a growth 4% in the June quarter of 2018 to post revenues of Rs 3674 crore as against Rs 3524 crore a year ago. On quarterly basis too the revenue showed an improvement. Bharti Infratel’s revenue for the previous quarter ended 31 March, 2018, was Rs 3662 crore.

“With the consolidation phase largely over, the Indian Telecom industry is now witnessing an integration phase as operators consolidate their networks and spectrum before the next phase of rollouts. We remain confident of the long-term growth potential of the Indian telecom sector driven by rising user demand, availability of cheaper handsets, introduction of new technologies and availability of rich content to the customers. This would necessitate rapid network rollouts. With our nationwide coverage, operational excellence and strong financial position, we believe we will continue to be the partner of choice for all operators for their passive infrastructure requirements,” said Akhil Gupta, Chairman, Bharti Infratel Limited.

At the end of the quarter Bharti Infratel had a total tower base of 91,759 that includes the firm’s own towers of around 39,000 and the rest comes from its 42% share in Indus Towers. During the June quarter Bharti Infratel added 308 more towers and for the entire year it added 922 towers across the country.

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