Share price of Bharti Airtel hit 7-month high on Tuesday after it recorded a surprise profit in the Q4 of FY19.
Share price of Bharti Airtel hit 7-month high on Tuesday after it recorded a surprise profit in the Q4 of FY19. The shares of the telecom major surged as much as 2.2 per cent to Rs 340.85 on today, their highest since September 24, 2018. The stock closed the trade yesterday at Rs 333.45 on NSE.
The stock is up 16.2 per cent so far this year as of last close. After climbing in the early trade, the scrip was trading at Rs 326.55, down 6.90 points or 2.07 per cent on NSE, as noted at the time of reporting.
Sunil Bharti Mittal-led telecom firm posted a 29 per cent jump in profit for the quarter ending March, helped by a one-time gain of Rs 2,022 crore. The company reported a surprise consolidated net profit of Rs 107.2 crore, during the January-March quarter.
Excluding the exception gain, Bharti Airtel had posted a net loss of nearly Rs 1,200 crore, which is wider than Rs 1,041 crore (before exceptional gain) in the third quarter, according to the filing to the exchanges.
Delhi-headquarter telco had been recording a profit for the last more than four quarters on account of exceptional gains.
Analysts in the Bloomberg poll had estimated the company to post a consolidated net loss at Rs 966 crore in the quarter under review.
What brokerages say
The company posted results ahead of expectations led by margin beat of 250 basis points, Reuters reported citing global brokerage Jefferies. The brokerage maintains an ‘underperform’ rating with a price target of Rs 270. Even though the telco is better priced than the peers in the industry, recovery is some time away, it added. The key for Bharti Airtel going forward is improvement in pricing, which still remains elusive, Jefferies noted.