Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2019 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Bharti Airtel: Depreciation & taxes drag profits - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Bharti Airtel: Depreciation & taxes drag profits

May 5, 2011

Bharti Airtel declared the results for fourth quarter and financial year 2010-11 (FY11). The company has reported 3% QoQ in total revenues while the net profits grew by 8% QoQ during the quarter. Here is our analysis of the results.

Performance summary
  • Consolidated sales grew by 3% QoQ during the fourth quarter of 2010-2011(4QFY11). For the full year 2010-2011 (FY11), sales grew by 42% YoY. The results for the full year include the results of the African operations and are hence not strictly comparable to the results of the previous year.
  • Mobile subscriber base in India grew by 6% QoQ during the quarter. Total count of subscribers stood at around 162 m at the end of March 2011. Total subscriber base on the network (including Asia and African operations) grew by 6% QoQ during the quarter.
  • Operating margins improved by 2% QoQ during the quarter owing to lower employee costs as well as lower selling and marketing expenses (as percentage of sales). The selling expenses had included one-time re-branding expenses of Rs 3.3 bn during the previous quarter, which was not there during the current quarter. For FY11, operating margins declined to 34% from the level of 40% seen during FY10.
  • Net profit witnessed a muted growth of 8% QoQ during the quarter. The growth was subdued by the higher depreciation charges as well as higher tax expenses. For FY11, net profits declined by 33% YoY. This was on account of lower operating margins as well as higher depreciation and interest charges.

To Read the Full Story, Subscribe or Sign In
To Read the Full Story, Subscribe or Sign In

Get the Indian Stock Market's
Most Profitable Ideas

How To Beat Sensex Guide 2019
Get our special report, How to Beat Sensex Nearly 3X Now!
We will never sell or rent your email id.
Please read our Terms


Mar 22, 2019 (Close)


  • Track your investment in BHARTI AIRTEL with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks