Bharti Infratel Q3 net declines 8% quarter on quarter

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Bengaluru | Updated: January 18, 2018 5:33 AM

The EBITDA fell by 1.3% to Rs 1,613 crore from Rs 1,634 crore. The EBITDA margin too declined to 44.1% in Q3 from 44.8% in Q2

Bharti Infratel, Bharti Infratel Q3,Bharti Infratel Q3 net declines 8% quarter on quarter (Source Company’s website)

Bharti Infratel, the telecom tower arm of Bharti Airtelon Wednesday reported an 8% sequential drop in its consolidated net profit at Rs 585 crore for the quarter ended December 2017 on account of the ongoing consolidation in the sector that led to decline in co-locations. Its consolidated revenue was up, albeit marginally, to Rs 3,655 crore during the quarter under review, against Rs 3,648 crore in the second quarter. The EBITDA fell by 1.3% to Rs 1,613 crore from Rs 1,634 crore. The EBITDA margin too declined to 44.1% in Q3 from 44.8% in Q2. Commenting on the performance, chairman Akhil Gupta said, “We are all aware that the Indian telecom industry is transforming with unprecedented consolidation. Inevitably and as anticipated, we saw exits of co-locations from such consolidating operators this quarter.” Its tenancy ratio fell to 2.35 during the third quarter, against 2.42 in Q2. Gupta said, “While there would be more exits on this account in coming few quarters, we expect the overall long-term impact to be positive due to expected accelerated step-up of nationwide 4G roll-out by remaining operators.”

With the company’s reach, financial strength and operational expertise, the firm is in the best position to capture what it believes is a big potential for the industry based on exciting data-based demand, Gupta said. On a year-on-year basis, consolidated revenue for Q3, at Rs 3,655 crore, rose 7% over the corresponding period last year. The net profit was down 6% compared to Rs 620 crore in the year-ago period. EBITDA improved to Rs 1,613 crore, up 8% Y-o-Y. Operating free cash flow grew 21% Y-o-Y to `970 crore for the third quarter.

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