Bharti Airtel posted lower than expected second quarter net profit of Rs.1027 crore, down 38% from September-end quarter last year, marred by higher debt servicing costs and spectrum purchases. The telecom operator’s roll-out of 3G network resulted in higher amortization cost of Rs.164 crore during the quarter.

Total sales for Q2 FY12 stood at Rs.17270 crore, up 13.38% from Rs.15231 crore reported during a year-ago period. Consolidated net profit for the country’s largest telecom firm came in at Rs.1661 crore. Moreover, the African operations of Bharti Airtel notched a revenue growth of 23%, indicating that the company continues to expand its footprint across Africa.

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It needs to be pointed out that Bharti Airtel had hiked its tariffs of its popular Advantage and Freedom pre-paid packs across several circles by 20% in the month of July 2011. Furthermore, telecom analysts pegged this tariff hike as the dawn of a new era for the telecom sector, which remained depressed by intense price competition and over-crowded players in the industry.

Bharti Airtel honcho Sunil Mittal said:

"This year is progressing well for the company. India has achieved double-digit growth, fuelled by non-voice businesses. The arrest of continuously declining prices in India augurs well for the telecom industry.”

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