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.


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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