Airtel posted its earnings for the quarter ended June on Monday evening
What Happened: The telco reported a net profit of ₹4,159.9 crore, a 158% increase from the ₹2,072 crore posted in the same quarter of the previous year. The profit was aided by a one-time net exceptional gain of around ₹735 crore.
This gain included ₹1,399 crore from a favourable Supreme Court judgment regarding the waiver of interest on the tax treatment of the adjusted revenue-linked variable license fee payable to the DOT and ₹274 crore from the divestment of Airtel Lanka.
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These gains were partially offset by a ₹938.7 crore foreign exchange loss due to currency devaluation in its group subsidiaries. Additionally, the net tax credit on these exceptional items was ₹327.8 crore, and the net charge allocated to non-controlling interest was ₹172.1 crore.
The telecom giant’s revenue for the quarter under review stood at ₹38,506 crore, up around 2.4% compared to the ₹37,599 crore booked in the same quarter last year. The numbers were mostly in line with street estimates. Analysts estimated a revenue of around ₹38,567 crore with a net profit of ₹3,558 crore. India revenue at ₹29,046 crore, up 10.1% from the year-ago period.
The average revenue per user (ARPU) stood at ₹211. The company’s overall customer base stands at 56.8 crore across 16 countries. India user base stands at around 40.9 crore.
The telecom major recently took a price hike in line with other industry peers. The average hike on plans was around 16%. The benefits of this hike are expected to be reflected in the September quarter.
Price Action: Airtel’s share price was down 1.88% to close at ₹1,465.70 on Monday.
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