Bharti Infratel reports net profit of Rs 648 crore

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Published: January 24, 2019 12:55:12 AM

Bharti Infratel on Wednesday reported a net profit of Rs 648 crore for the quarter ended December 2018, a jump of 11% compared with Rs 585 crore for the year-ago period. The revenue for the period remained flat at Rs 3,640 crore, against Rs 3,655 crore.

Bharti Infratel, BHARTI INFRATEL NEWS, BHARTI INFRATEL NET PROFITBharti Infratel reports net profit of Rs 648 crore

Bharti Infratel on Wednesday reported a net profit of Rs 648 crore for the quarter ended December 2018, a jump of 11% compared with Rs 585 crore for the year-ago period. The revenue for the period remained flat at Rs 3,640 crore, against Rs 3,655 crore.

Despite major co-location exits in the quarter and during the year due to consolidation in the telecom industry, the company was able to achieve a net profit growth of 11%. One reason for this could be exit charges which operators paid to Infratel.

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During the reported quarter, the company received `55.3 crore as exit charges. As a result of operators leaving midway, the average sharing factor or the tenancy ratio came below 2% for the first time in recent years. The average sharing factor stood at 1.89% in the December quarter, compared with 2.04 in the preceding period. The sharing factor had stood at 2.38% in the December quarter of last year.

Total towers of the company increased to 92,301 from 91,007 last year. However, total co-locations decreased to 174,449 in the reported period, compared to 213,476 last year. “The consolidation and integration phase in the Indian telecom industry, along with exits of co-locations, is largely over. We are now looking at the next phase of network and related infrastructure rollouts by operators – first for 4G and subsequently for rapidly evolving 5G, to cater to ever-growing demand for data. These would require large investments, thereby presenting potential for sizeable growth for passive infrastructure companies going forward,” Akhil Gupta, chairman of Bharti Infratel, said.

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