Bharti Airtel Shares Rise Ahead of Potential Announcement

The top management of Bharti Airtel will address hold a media briefing at noon today. Shares of country's largest telecom operator by subscribers edged higher ahead of the any potential announcement.

At 10:16 a.m., shares of Bharti Airtel were up 0.40 per cent at Rs 418.55 as compared to a flat Nifty.

"We have to wait and watch what comes out of it (press meet)," said Bhavesh Gandhi, telecom analyst at IIFL.

Bharti Airtel on Tuesday had on Tuesday announced it June quarter earnings. It posted a better-than-expected 40 per cent rise in quarterly net profit, helped by a one-time gain from the divestment of some of its tower assets in Africa. Bharti Airtel operates in 20 countries across Asia and Africa.

Bharti Airtel's net profit rose to Rs 1,554 crore for its quarter ended June 30, from Rs 1,109 crore a year earlier. The profit was aided by a net benefit after tax of Rs 458 crore, mainly related to the hiving off of tower assets in four African countries for about $1.3 billion.

The company's India business saw growth in voice and data demand, boosting total revenue 3.1 per cent to Rs 23,671 crore.

Bharti Airtel shares have been one of the top gainers among Nifty stocks. Bharti Airtel shares have gained around 18 per cent year to date.

Commenting on the impending competition from the launch of Reliance Jio's services, Mr Gandhi of IIFL said Bharti Airtel has a strong balance sheet to withstand a high level of competition. Also, Bharti Airtel has one of the best spectrum portfolio among telecom operators in India, he added.

IIFL maintains a buy rating on Bharti Airtel with a 12-month target of Rs 480. (With Agency Inputs)