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Mumbai : India's mobile giant Bharti Airtel reported fourth-quarter results, reporting a decline in profit from the same quarter a year ago. Quarterly results were negatively impacted by cheaper call rates.
Quarterly net profit declined 8% to Rs.2, 055 crore from the same quarter last year. Results were impacted by the stiff competition among the cell phone services providers, which slashed call rates in an effort to be the market winners. Schemes like per second billing also hurt margins of the telecom service providers across the country.
Mobile subscribers in the country are increasing at an average rate of 16 million a month. In March, subscribers improved by 20 billion. Stiff competition between the service providers, however, made call rates cheaper, with per second billing charges falling to a low of 1/100th of a U.S cent.
Revenues for the period Januray to March, however, edged up 2% to 10,055.7 crore as the company's customer base improved by 8.8 million mobile users.
For the fiscal year 2009-10 net profit grew 7% to s.9, 102.6 crore from Rs.8, 469.9 crore last year. Revenues for the year also were up 7% to Rs.39, 615 crore.
Shares of the company dropped to Rs.292 in the morning trade, however, recovered to 298.10 later.
In March, Bharati entered into a deal to buy the African assets of the Kuwait based Zain for a cost of around $9 billion, in an effort to be the fifth largest mobile operator in the world.
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Mobile subscribers in the country are increasing at an average rate of 16 million a month. In March, subscribers improved by 20 billion. Stiff competition between the service providers, however, made call rates cheaper, with per second billing charges falling to a low of 1/100th of a U.S cent.
Revenues for the period Januray to March, however, edged up 2% to 10,055.7 crore as the company's customer base improved by 8.8 million mobile users.
For the fiscal year 2009-10 net profit grew 7% to s.9, 102.6 crore from Rs.8, 469.9 crore last year. Revenues for the year also were up 7% to Rs.39, 615 crore.
Shares of the company dropped to Rs.292 in the morning trade, however, recovered to 298.10 later.
In March, Bharati entered into a deal to buy the African assets of the Kuwait based Zain for a cost of around $9 billion, in an effort to be the fifth largest mobile operator in the world.
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