Telecom infrastructure company Bharti Infratel on Monday reported a 21 per cent drop in consolidated net profit to Rs 704 crore for the April-June quarter.
The net profit stood at Rs 887 crore in the corresponding quarter of previous year, when the company had benefited from certain one-off gains with respect to operating expense reversal and certain tax-related reversal. The company's board also accepted resignation of D S Rawat as Managing Director and CEO with effect from August 3, 2020.
The consolidated revenues for the first quarter of FY2020-21 came in at Rs 3,505 crore, down by 6 per cent year-on-year. The board of directors in its meeting held on Monday declared an interim dividend of Rs 2.30 per equity share of Rs 10 each for the financial year 2020-21, the company said in a statement.
The board has fixed August 6, 2020, as the 'Record Date' for the purpose of ascertaining the eligibility of shareholders for the payment of interim dividend, a company filing said adding that the payment of interim dividend will be done on or before August 26, 2020. In another filing, Bharti Infratel said that its board has accepted the resignation of D S Rawat as Managing Director and CEO of the company and as a Director from the Board with effect from close of business hours on August 3, 2020.
"…vide our earlier intimation dated April 24, 2019, we have informed that Mr. Rawat had expressed his intention to not be considered for the role of Managing Director and CEO of the merged entity, post the merger of Bharti Infratel Limited and Indus Towers Limited," the company said. In view of the same, subject to shareholders' nod, the Board had re-appointed Rawat as Managing Director and CEO of the company with effect from April 1, 2020 up till September 30, 2020 or the date of ensuing AGM that is August 3, 2020, whichever is earlier.
"Till the time the aforesaid vacancy is filled, the operations will be managed by the next highest ranking officer under the guidance of the Chairman of the Board," the company said. In its quarterly report, Bharti Infratel said it believes that so far there is "no significant impact" of COVID-19 pandemic on the financial position and performance of the company.
While rollouts were impacted partly in the quarter due to nationwide lockdowns, the company is now running its business and operations without any major disruptions, it said. Commenting on the results, Bharti Infratel Chairman Akhil Gupta said, "The ongoing Covid-19 crisis has emerged as a significant global public health challenge while bringing economic activity to a virtual standstill in many countries. India is also witnessing an unprecedented crisis on account of the same".
The resilience shown by telecom industry as a vital service even in the wake of extreme exigencies like Covid-19, bears well for the future potential of the infrastructure industry, he said. "We remain fully prepared in maintaining and strengthening our leadership position going forward," Gupta added.
The results came in after close of the market hours. Bharti Infratel shares ended at Rs 194.55 apiece on Monday, 0.59 per cent lower than the previous close.