Bharti Airtel net down on forex loss and rebranding cost

Bharti Airtel net down on forex loss and rebranding costA 41 per cent decline has been reported by Telecom major Bharti Airtel in its consolidated net income at Rs 1,303.3 crore for the quarter ended December 31, 2010. The loss is attributed to huge rebranding cost and forex losses.

India’s largest telecom operator in terms of subscriber base, Bharti Airtel, had reported a net income of Rs 2,194.9 crore in the same quarter a year ago.

From in.finance.yahoo.com:

Adverse currency movements in India and Africa resulting in restatement losses of Rs 151 crore and the one-time rebranding costs of Rs 340 crore are the main factors that dragged the net income down, Bharti Group CFO Manik Jhangiani told reporters here.

“The impact of the additional spectrum charge (Rs 80 crore) as well as the higher interest outgo (Rs 471 crore) related to the acquisition on year-on-year basis (if not factored in, then) it is a flat performance in net income…,” he said.

Total revenue for the reported quarter, however, rose by 51.14 per cent to Rs 15,756 crore from Rs 10,305.3 crore recorded in the third quarter ended December 31, 2009.

Bharti airtel has re-paid USD 415 million of its net debt in the third quarter, a major portion of which was towards the repayment of loans for 3G and BWA license.

“Revenue from African operations rose 8.7 per cent quarter-on-quarter to USD 911 million. We have completed the integration of Zain acquisition,” Bharti airtel CEO Sanjay Kapoor said.

Company’s average revenue per user (ARPU) for the quarter stood at Rs 198 from Rs 202 in Q2 FY’11.

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