41% decline in net income of Bharti Airtel
Telecom major Bharti Airtel has reported that a 41 percent fall in its total net income at Rs 1,303.3 crore. This decline was recorded for the last quarter ended in December 31, 2010.
This was the result of huge rebranding cost and forex losses. Bharti Airtel is country's largest telecom operator as per subscriber base. It had reported that a net income of Rs 2,194.9 crore in the same quarter in previous year.
The main causes of the decline in the net income were unpleasant currency movements in India and Africa which resulted in rewording losses of Rs 151 crore and the one-time rebranding costs of Rs 340 crore as stated by Bharti Group CFO Manik Jhangiani.
Bharti Airtel has re-paid $415 million of its net debt in the third quarter. The maximum of debt was towards the repayment of loans for 3G and BWA license.
Bharti airtel CEO Sanjay Kapoor has said that revenue from African operations has increased to 8.7 per cent quarter-on-quarter to $911 million. They have completed the amalgamation of Zain acquisition.
Kuwait-based Zain Telecom's African business was purchased by Bharti Airtel for $10.7 billion (about Rs 48,000 crore).