Profit

Jio Effect: Bharti Airtel March Quarter Profit Plunges 78%, Lowest In Nearly 15 Years

The entry of Reliance Jio into the domestic telecoms sector has set off a brutal price war among operators.

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Jio Effect: Bharti Airtel March Quarter Profit Plunges 78%, Lowest In Nearly 15 Years

Airtel's revenue fell 10.5% to Rs 19,634 crore in March quarter.


Bharti Airtel Ltd posted its lowest quarterly profit in nearly 15 years on Tuesday, as a price war in the telecoms sector continued to hurt, while revenue was hit by a regulatory cut in international termination charges. The entry of Reliance Jio, the telecoms arm of Reliance Industries Ltd, into the domestic telecoms sector has set off a brutal price war among operators as they drastically cut prices to compete with Jio's bottomed out plans.

(Also Read: Bharti Airtel Announces Apple Watch Series 3 Online Sale, Cellular Trial Offer)

Compounding to the industry's woes, the telecoms regulator had also cut international termination charges (ITC) - paid by global long-distance operators to local carriers - to 30 paise from 53 paise, effective from February.

(Also Read: Is Jio Really Profitable? Audit To Answer Doubts And Controversies)

"The telecom industry continues to witness below cost, artificially suppressed pricing," Gopal Vittal, Bharti Airtel's managing director and chief executive for India and South Asia, said in a statement on Tuesday.

(Also Read: Airtel's Rs. 549, Rs. 799 Prepaid Recharge Plans Now Offer More Benefits. Details Here)

Profit slumped 77.8 per cent to Rs 82.9 crore ($12.49 million) in the quarter ended March 31, the company said, its lowest since the quarter ended June, 2003.

(Also Read: Airtel's Latest Offers - Rs 249 New Prepaid Plan, Rs 349 Plan, 30GB Free Data Offer)

Revenue fell 10.5 per cent to Rs 19,634 crore rupees.
© Thomson Reuters 2018


(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)


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