Stock Fundamentals

Why did Bharti Airtel's stock rally?

Bavadharini KS | Updated on December 08, 2019 Published on December 08, 2019

 

The stock of leading telecom service provider Bharti Airtel rallied last week, thanks to the implementation of new tariff plans for its pre-paid mobile customers, who form 95 per cent of the company’s customer base.

Tariffs across voice and data services have gone up 15-41 per cent across various plans. This move comes on the back of telecom companies reporting record losses for the quarter ended September, after making provisions towards adjusted gross revenue (AGR).

Airtel reported losses of ₹25,222 crore in the first half of FY20. However, the company registered a revenue growth of 5 per cent during the same period, thanks to the focus on fewer and better-paying customers.

The recent tariff hikes can aid the top-line for the company and also cushion the impact of AGR.

 

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Published on December 08, 2019
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