Bharti Airtel Q2FY20 Results: Telecom giant reports Rs 23,045 crore loss on AGR provisioning
Bharti Airtel Q2FY20 Results: Bharti Airtel has reported a consolidated net loss of Rs 23,044.9 crore in Q2 of 2019-20, against a loss of Rs 2,866 crore in the previous quarter, on provisions towards AGR.
Bharti Airtel Q2FY20 Results: Bharti Airtel has reported a consolidated net loss of Rs 23,044.9 crore in Q2 of 2019-20, against a loss of Rs 2,866 crore in the previous quarter, on provisions towards Adjusted Gross Revenue (AGR). In its written statement, Bharti Airtel informed that the company's Profit before tax in September quarter slipped to Rs 623.1 crore against Rs 1,853.5 crore in September 2018. Company's Income tax expense nosedived at Rs 187.4 crore in September 2019 against Rs 1,088.9 crore in Q2FY18. Ironically, Bharti Airtel had reported Rs 119 crore profit in the corresponding period that dipped to Rs 23,045 crore loss in its Q2FY20 results.
Informing its Q2FY20 number, Bharti Airtel reported 443 per cent dip in its profit after tax (before exceptional items) to Rs 435.7 crore against Rs 764.5 crore in Q2FY18. It's Non-Controlling Interest crashed 243 per cent to Rs 687.2 crore from Rs 200.4 crore in Q2FY18. Airtel's Net income (before exceptional items) stands at Rs 1,122.8 crore against Rs 965 crore in Q2FY18.
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Airtel has provided for an additional amount aggregating Rs 28,450 crore as a charge for the quarter (comprising of principal of Rs 6,164 crore, interest of Rs 12,219 crore, penalty of Rs 3,760 crore, and interest on penalty of Rs 6,307 crore) with respect to the license fee as estimated based on the court judgment and spectrum usage charges (SUC) as estimated based on the definition of AGR.
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#BhartiAirtel Q2FY20 Results: Telecom giant reports Rs 23,045 crore loss on AGR provisioning https://t.co/46ich0qbRa
— Zee Business (@ZeeBusiness) November 14, 2019
Speaking on the reason for such a weak numbers in September quarter being reported by the Bharti Airtel company Prakash Pandey, MD & CEO at Plutus Advisors said, "The Bharti Airtel has reported such numbers because its has done one-time provisioning of Rs 30,711 crore, out of which Rs 28,450 crore it has paid to the Department of Telecom (DoT). The company has reported 5 per cent rise in its revenue from Rs 20,147.8 crore in Q2FY18 to Rs 21,131.3 crore in Q2FY19. It's ARPU (Average Revenue Per User) has also been positive."
Pandey said that Company's EBITDA has grown 41 per cent." Pandey said that stock investors are advised to avoid taking any decision in the Bharti Airtel counter till the next trigger.
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