Stock Fundamentals

Bharti Airtel’s Q1 loss widens; revenue growth healthy

Bavadharini KS | Updated on August 02, 2020 Published on August 02, 2020

Bharti Airtel reported a loss of ₹15,191.2 crore in the June quarter. The widening of losses was due to exceptional items of ₹11,745.7 crore, which includes incremental provision and interest on licence fee and spectrum usage charges and net charge pertaining to re-assessment of levies.

It, however, registered a healthy revenue growth of 15 per cent y-o-y at ₹23,939 crore (1 per cent q-o-q) driven by tariff hikes taken in December last year.

Its operating margin expanded largely on account of tariff hikes and cost control measures.

Also, with the Covid-19 outbreak, there’s increased demand for telecommunication and internet services. The company’s data usage increased to 39 per cent y-o-y in the recent June quarter (11 per cent q-o-q).

Content partnership with platforms such as Netflix and Hotstar, too, helped.

However debt (at ₹1,16,541 crore) remains a cause for concern.

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Published on August 02, 2020
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