Bharti Infratel Shares Jump by 5% After Strong Q1 Earnings
Bharti Infratel’s consolidated net profit grew by 39% year-on-year to Rs 887 crore for the June quarter on account of network expansion by mobile service providers.
Image for representation (Image: Reuters)
Bharti Infratel Ltd shares jumped as much as 6% in intraday trade on Thursday, i.e. 25 July, after the company’s earnings for the first quarter (Q1) ended June beat analyst expectations. At 11:43 am, shares of Bharti Airtel were trading at Rs 273.75, up 3.6%, on BSE after hitting an intra-day high of Rs 279.85. The stock has lost nearly 8% in the last one year.
Bharti Infratel’s consolidated net profit grew by 39% year-on-year to Rs 887 crore for the June quarter on account of network expansion by mobile service providers. The company had posted a net profit of Rs 638 crore in the same quarter a year ago.
Consolidated revenue grew by 1% to Rs 3,712 crore during the quarter compared with Rs 3,674 crore in the corresponding quarter of the previous year.
Bharti Infratel reported reduction in 956 co-locations -- which represent the number of base stations per tower. The company also recorded an increase of 873 mobile towers on a year-on-year basis to 92,632 at the end of June 2019 from 91,759 a year ago.
Akhil Gupta, chairman of Bharti Infratel, said in a statement: “We are pleased to note that after negative trend in net co-locations for the last six consecutive quarters due to consolidation in the telecom industry, we had net additions in co-locations this quarter. We hope and believe that this trend would continue as the operators post consolidation and raising of significant capital recently will now focus on
fresh rollouts of networks to increase both coverage and capacity which is the need of the hour,”
After the earnings, brokerage firm UBS maintained a ‘buy’ on the Bharti Infratel stock with a target price of Rs355. The brokerage firm noted that revenue was bottoming out, but the rate of recovery remained slow. Brokerage firm BofA Securities also maintained a ‘buy’ on the stock with a target price of Rs 340.
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