New Delhi: Bharti Airtel Ltd posted a loss of ₹1,035 crore, its third quarterly loss in 14 years, as the company set aside funds to pay dues to the government and comply with a Supreme Court verdict.
The Delhi-based telecom operator swung to a ₹1,035 crore loss in the quarter ended 31 December from a profit of ₹86 crore in the year earlier, Bharti Airtel said in a statement on Tuesday. Consolidated revenue from operations rose by 8.5% to ₹21,947 crore.
In December, the company increased tariffs by as much as 40% and raised the minimum monthly recharge for prepaid users to ₹45.
Mobile revenue grew, led by a strong focus on quality users, and in some part, benefitted by the recent tariff actions although the full impact of the tariff actions is yet to be seen, the company said.
The earnings announcement comes two weeks after the apex court agreed to hear Airtel’s modification plea filed after the court ordered the company on 24 October to pay ₹35,586 crore of adjusted gross revenue (AGR) dues by 23 January to the government.
In the September quarter, the company reported a record loss after having to set aside ₹28,450 crore towards dues related to license fees and spectrum usage charges, including penalties and interest costs.
“During the quarter ended December 31, 2019, the group has continued to recognize, in the same manner, its obligations under the judgements/orders. Accordingly, during the quarter, the group has further recorded interest of ₹1,048.1 crore, which has been presented as exceptional item,” the company said.
Besides Airtel, Vodafone Idea and Tata Teleservices have also filed pleas to seek more time to pay dues related to the court’s order on how revenue should be calculated, based on which operators pay levies.
The telcos want to negotiate a sustainable payment schedule with the telecom department, which has issued demand notices worth over ₹1 trillion for revenue share, interest, and penalty.
To be sure, Airtel, last month, raised ₹21,502 crore through a mix of equity and debt to pay the dues.
“Pursuant to the infusion of fresh equity and long-term financing via convertible bonds subsequent to the reporting period ended December 31, 2019 and available liquidity/facilities with the group, the management has concluded that the previously reported material uncertainty on the group’s ability to continue as a going concern no longer exists,” Airtel said.
Airtel’s monthly average revenue per user from mobile services in India rose to ₹135 in the December quarter from ₹128 in the September quarter. On this metric, it beat Jio which recorded an average revenue per user of ₹128.4 in the December quarter.
“While tariff revision undertaken in December 2019 is a welcome step towards repairing the financial health of the industry, we believe tariffs must go up further for enabling the industry to invest in emerging technologies,” Bharti Airtel chief executive Gopal Vittal said in a statement.
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