Bharti Airtel share price: Billionaire Sunil Mittal-led Bharti Airtel share price plunged on Tuesday ahead of its Q2 results scheduled to be announced later today.
Bharti Airtel share price: Billionaire Sunil Mittal-led Bharti Airtel share price plunged on Tuesday ahead of its Q2 results scheduled to be announced later today. Notably, Bharti Airtel share price plunged 4.93% this morning to intraday low of Rs 301, as the firm is expected to post its first quarterly loss in 15 years. In view of the extreme competition in the telecom space, especially from Mukesh Ambani-led Reliance Jio, brokerage firms expect the firm to report its first quarterly loss in 15 years.
According to Edelweiss Securities, Bharti Airtel may report a net loss of Rs 1,466.80 crore for the quarter ended September 2018 against a net profit of Rs 343 crore in the corresponding quarter last year. Research and brokerage firm Motilal Oswal expects consolidated revenue to decline 8% on-year to Rs 19,980 crore, and consolidated EBITDA to fall 6% to Rs 6,340 crore.
“Bharti’s India wireless business is expected to feel the pressure from another round of discounting by Jio in September 2018 coupled with seasonality effect. In contrast, revenue pressure may be mitigated, to some extent, by strong revenue growth from the Africa business, aided by rupee depreciation. India wireless revenues are expected to decline 2 per cent QoQ at Rs 10,270 crore,” ICICI Securities said in a report.
Notably, the firm announced yesterday the raising of close to $1.25 billion from six marquee investors including SoftBank Group International and Warburg Pincus by diluting a stake in Airtel Africa. Following the development, Bharti Airtel shares zoomed 15% to an intraday high of Rs 328.75 on the BSE. The rise in Bharti Airtel share price lead to an addition of Rs 12,332 crore to its market capitalization at the end of yesterday’s close.