A telecommunications tower stands on top of a building (Photographer: Susana Gonzalez/Bloomberg)  

Bharti Infratel Net Profit Meets Estimates In March Quarter

Bharti Infratel Ltd.’s profit rose for the first time in three quarters.

Net profit of the mobile tower company rose 3.6 percent over the previous three months to Rs 610 crore in the quarter ended March, it said in an exchange filing. That matched the BloombergQuint estimate of Rs 616 crore. Revenue rose marginally to Rs 3,662 crore over the previous quarter, ahead of the estimated Rs 3,595 crore.

Bharti Infratel’s tenancy ratio stood at 2.25 compared with 2.38 in the previous quarter. The company saw a loss of 22,134 co-locations due to “unprecedented” consolidation in the telecom sector during the year, Chairman Akhil Gupta said in a press statement.

Reliance Jio upended the Indian telecom industry, after its entry in 2016, forcing rivals to merge or exit. Shutdown of telecom companies such as Reliance Communications Ltd., Aircel and Tata Teleservices led to tenancy losses for the tower industry in India.

Other Highlights

  • Earnings before interest, tax, depreciation and amortisation also rose marginally to Rs 1,606 crore
  • Operating margin contracted 20 basis points to 43.8 percent.
  • The company announced a dividend of Rs 14 per share for the current financial year.

Bharti Infratel Ltd. is best set to cash in on the boom in the telecom sector, amid consolidation and shutdowns, Morgan Stanley said in a report ahead of the earnings announcement. Reduction of dependency on Bharti Infratel’s towers by various operators can have limited impact on the stock, said Morgan Stanley, implying a potential upside of 34 percent for the stock from the current levels.

Also Read: Why Morgan Stanley Sees 34% Upside Potential In Bharti Infratel

Ahead of the earnings announcement, shares of the company fell 0.94 percent to Rs 328.

(Corrects an earlier version which said profit rose for the first time in six quarters)