Home Business Bharti Airtel posts a whopping Rs15,933 crore loss in Q1

Bharti Airtel posts a whopping Rs15,933 crore loss in Q1

NEW DELHI: Bharti Airtel Ltd on Wednesday posted a consolidated net loss of ₹15,933 crore within the April-June quarter because the company undertook a huge ₹11,746 crore charge, primarily for incremental provision and interest associated with Supreme Court’s order on adjusted gross sales definition last year.

In the corresponding quarter last year, the communications giant had posted a consolidated loss of ₹2,866 crore.

“Consequently, without prejudice and on prudence, during the quarter ended June 30, 2020 the (Bharti Airtel) group has further recorded an incremental provision of ₹107,444 million, including net interest on total provision created considering rate of interest as per the affidavit filed by DoT on March 16, 2020 with effect from the date of Court Judgement,” the corporate said during a filing with exchanges.

Operationally, the corporate had a robust quarter despite the covid-19 pandemic causing an unprecedented disruption.

Consolidated revenue from operations grew 15.4% year-on-year to ₹23,939 crore.

More importantly, Bharti Airtel reported a second straight quarter of positive operating income for its core business of mobile services in India at ₹165 crore. The business clocked revenue of ₹12,877 crore for the quarter, up 18.5% yoy.

The company’s average revenue per user for India mobile operations were ₹157 per user per month, slightly above the ₹154 within the March quarter. With increased specialise in attracting high-value 4G customers, Bharti Airtel has managed to extend its revenue metrics, and now commands a better ARPU than even rival Reliance Jio Infocomm Ltd.

While Reliance Jio will report its April-June earnings on Thursday, in January-March it had posted an ARPU of ₹130.6 per user per month.

During April-June, the corporate recorded a “slower” 2 million net additions within the number of 4G customers at 138.3 million thanks to the stringent covid-related lockdown in April and also in half of May.

With most employees performing from home, and with limited fibre internet penetration, data usage per subscriber reached the highest-ever level of 16.3 GB per month, up 73% yoy.

“We are browsing an unprecedented crisis caused by COVID. Despite this, our teams have served the country well and kept our customers connected. Data traffic growth surged by 73% YoY whilst 4G net additions bogged down to 2 million caused by supply chain shocks within the device eco system,” Gopal Vittal, Bharti Airtel’s chief military officer for India and South Asia, said during a statement

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