Bharti stock sinks again; shaves off 10% in two-days

Business

oi-Sunil

By Sunil Fernandes

Published: Thursday, August 9, 2012, 9:51 [IST]

After the sharp 6.6% drop on Wednesday shares of Bharti Airtel were down another 4% in early trade today, shaving off 10% in two days. The stock was trading at Rs 263 on the BSE, a level not seen in the last two years.

Bharti Airtel, disappointed the streets with its Q1 2013 numbers, as net profit declined by 37% to Rs 762.2 crore against Rs 1,215.2 crore for the corresponding period of previous quarter on adverse regulatory and tax issues impacting the operating profits.

The company's earnings before interest, tax, depreciation and amortisation (EBITDA) stood at Rs 5849 crore, lower than expected.

Airtel customer base stood at 26 crores. During the quarter ended June 30, 2012, Bharti Airtel Employee Welfare Trust (a trust set up for administration of ESOP Schemes of the Company) has transferred 116,466 shares to the employees upon exercise of stock options, under ESOP Scheme 2005.

"Telecom revenues in India have been depressed due to hyper-competition and recent regulatory & tax developments," chairman Sunil Bharti Mittal said.

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