Business Daily from THE HINDU group of publications
Friday, Mar 13, 2009
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Business Daily from THE HINDU group of publications Friday, Mar 13, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
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Telecommunications Markets - Stocks
Mr Manoj Kohli Our Bureau New Delhi, March 12 Bharti Airtel’s share price slumped by 6.37 per cent on Thursday to close at Rs 550.30 on the Bombay Stock Exchange after the company’s Chief Executive Officer sold his entire personal stake last week. Mr Manoj Kohli had sold 1.23 lakh shares in two tranches — on March 6 and 9 — for over Rs 7.20 crore. The move sparked off concerns about the company’s health adding to the negative sentiments created after the telecom regulator dropped termination charges. Clarifying his position Mr Kohli said, “I have sold my current holding in Bharti Airtel Ltd for personal reasons. I continue to hold 1,80,000 options in the company, some of which have already vested and the balance will vest from time to time, as per the vesting schedule. I am happy to confirm that I continue as CEO and Joint Managing Director of the company.” Company sources said that Mr Kohli may be buying some property with the money raised through the stake sale. The shares held by Mr Kohli represented 0.006 per cent of the company’s total equity base. No exit plans
He also denied rumours of his exiting the company or being on his way out. “I’m really amused by this speculation because it is completely wrong and false. I am completely committed to Bharti. I think this journey of Bharti Airtel for so many years has been very gratifying and it will continue for many more years to come,” he said. Mr Kohli was appointed CEO of the company on March 20, 2007. Earlier in March 2006, he was appointed President of Bharti Airtel and headed the integrated business units of mobile services, broadband and telephone services and enterprise services. Tariff cutBharti Airtel’s stock price may also have been impacted by was Telecom Regulatory Authority of India’s decision to cut domestic termination charge. The move, which cuts the charge to 20 paisa from 30 paisa earlier, would result in cheaper calls for users but is expected to impact revenues of large GSM players including Bharti. According to CLSA report, “A regulatory review has cut termination charges by 33 per cent, or Rs 0.1/minute, from April 1. This, plus lower tariffs, is likely to cut Bharti Airtel’s profit by 3-5 per cent. “However, the company’s subscriber growth continues to outstrip our forecasts. February was another strong month, with net additions of 2.73 million, taking the total to 91 million, and we are raising our assumptions by 9-16 per cent, partly offsetting the interconnection changes, resulting in a 2 per cent earnings cut for FY10-11.” Telecom tariffs likely to come down from April Bharti Airtel: Buy Review of termination charges may take time More Stories on : Telecommunications | Stocks | Bharti Tele-Ventures Ltd
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