airtel

Bharti Airtel , the country’s largest telecom operator, surpassed analysts’ estimates on Tuesday with first quarter profit surging 23.8 percent sequentially to Rs 1,554.3 crore. The bottomline was boosted by one-time gain of Rs 1,431.4 crore but high tax cost restricted growth.

Revenue grew by 2.8 percent to Rs 23,670.9 crore compared to Rs 23,015.5 crore in March quarter.

Profit was estimated at Rs 1,327 crore on revenue of Rs 23,307 crore for the quarter, according to average of estimates of analysts polled by CNBC-TV18.

“The year has begun on a healthy note, with underlying revenue growth accelerating to 12.7 percent in India,” said Gopal Vittal, MD and CEO, India & South Asia.

Consolidated operating profit (earnings before interest, tax, depreciation and amortisation) rose 2.6 percent quarter-on-quarter to Rs 8,262 crore but margin slightly missed street expectations, down 10 basis points to 34.9 percent. Analysts had expected operating profit at Rs 8,203 crore and margin 35.2 percent for the quarter.

Mayuresh Joshi, Fund Manager (PMS), Angel Broking said that though topline is in line with street expectations, it is the earnings before interest, tax, depreciation and amortization (EBITDA) that have come slightly below expectations. African margins might the reason it as it contributes nearly 19.5-20 percent, he said.

The earning numbers look good especially the mobile revenues, Naveen Kulkarni, Co-Head of Research, PhillipCapital told CNBC-TV18. Though the average revenue per user (ARPU) has fallen, there has been growth in voice traffic in the June quarter, he said.