News Column

Bharti Infratel Q4 net up 64% to ` 472 cr

April 24, 2014

BHARTI Infratel arm of Bharti Airtel on Thursday saw a 64 per cent jump in its consolidated net profit at ` 472 crore for the quarter ended March 31, 2014.

The rise is due to increase in number of tenants on towers and other income.

The company, in which Bharti Airtel has around 80 per cent stake, had reported a net profit of ` 287 crore in the corresponding period last year.

The revenues of the company went up by 4 per cent to ` 2,790 crore for the reported period as compared to ` 2,674 crore in the same period last year.

The company crossed the sharing factor of 2 at the end of the quarter. Sharing factor refers to the number of tenants ( operators) who have put up their antennae and other active infrastructure on the towers. Other income for the reported quarter was ` 144.5 crore or 5.2 per cent of the consolidated revenues, representing primarily income arising out of investments and profit on sale of assets.

For the fiscal 2013- 14, the company reported a net profit of ` 1,518 crore as compared to ` 1,003 crore in the earlier fiscal while revenues were up by 5 per cent to ` 10,827 crore as compared to ` 10,272 crore in the review period.

Operators have made large investments, primarily for data networks. "We believe that faster roll- out of networks will happen over the coming years to monetise these investments," Bharti Infratel chairman Akhil Gupta said. He said tower firms have started seeing big increase in the roll- out orders by the operators and there is no doubt that this will accelerate further.

Gupta said telecom industry globally is in a very interesting and promising phase on the back of exponential growth in data and as a result of this, operators are investing heavily in acquiring spectrum and rolling out networks.

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: Mail Today (India)