Traffic passes mobile phone telecommunications towers in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Q2 Results: Bharti Infratel’s Profit Meets Estimates

Bharti Infratel Ltd.’s quarterly profit fell as Vodafone India and Idea Cellular Ltd. halted using the company’s towers after their merger.

Net profit declined 6 percent quarter-on-quarter to Rs 600 crore in the three months ended September, according to the company’s exchange filing. Analyst estimates compiled by BloombergQuint had pegged the profit at Rs 605 crore.

Revenue fell sequentially by 1 percent to Rs 3,648 crore, compared with BloombergQuint’s estimate of Rs 3,587 crore.

Nearly 26,266 tenancies were cancelled during the quarter primarily due to the merger between Vodafone India and Idea Cellular. The company had earlier announced that it anticipated a monthly loss of Rs 60 crore due to the merger.

Operating performance, or earnings before interest, tax, depreciation and amortization, fell 1 percent sequentially to Rs 1,506 crore, failing to meet analyst estimates. Operating margin contracted 10 basis points to 41.3 percent.

Shares of the company fell 0.85 percent to Rs 263.25 apiece ahead of the earnings. The stock declined close to 40 percent in the last 12 months compared with a 5.6 percent gain in the S&P BSE Sensex.