Bharti Airtel on Thursday Dec 05,2019 posted a staggering Rs 23,045 crore net loss for the second quarter ended September 30, due to provisioning of Rs 28,450 crore in the aftermath of the Supreme Court ruling on statutory dues.
The Sunil Mittal-led company said the SCI judgement -- which had upheld government's way of calculating revenue of telcos (on which statutory liabilities like licence fee and spectrum usage charges are computed) -- has "significant financial implication for the company"
Last month, Bharti Airtel had postponed the release of its full Q2 earnings to November citing the uncertainty in the sector in the wake of the court ruling on the definition of telecom revenues
Airtel's colossal net loss for just-ended September quarter was on account of exceptional charge pertaining to provisioning of Rs 28,450 crore towards the AGR dues, that included principle of Rs 6,164 crore, interest of Rs 12,219 crore, penalty of Rs 3,760 crore, and interest on penalty of Rs 6,307 crore
Announcing its Q2 earnings scorecard, Airtel said its consolidated net loss before exceptional items (the one time charge) for the quarter was Rs 1,123 crore, and that the net Loss (after exceptional items) was Rs 23,045 crore
The company had recorded net profit of Rs 119 crore in the same quarter previous year, although it said that year-on-year numbers were not comparable due to adoption of new accounting standard
"...the liabilities / provisions as at September 30, 2019 aggregate Rs 34,260 crore (comprising of principal of Rs 8,747 crore, interest of Rs 15,446 crore, penalty of Rs 3,760 crore and interest on penalty of Rs 6,307 crore)," Airtel said in a statement
The consolidated revenue of Bharti Airtel was up by 4.7 per cent at Rs 21,199 crore in the just-ended quarter. India revenues were up 3 per cent year-on-year (5.7 per cent on an underlying basis), while Africa revenues rose 12.6 per cent over the same period previous year.
"India revenues for Q2 at Rs 15,361 crore have increased by 5.7 per cent year on year (reported increase of 3 per cent) on an underlying basis. Mobile revenues have witnessed a year-on-year growth of 7.1," it added.
Consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) came in at Rs 8,936 crore in the Q2 FY2020 against Rs 6,343 crore in the year ago period.
Note
Bharti Airtel posted a staggering Rs 2,866 crore loss for the first quarter of FY 2020, amid a fierce competition unleashed in the Indian telecom market by rival Reliance Jio.
Airtel had logged a net profit of Rs 97 crore in the same period of the previous year, Bharti Airtel said in a statement.
The revenue of the Sunil Mittal-led company rose 4.7 per cent to Rs 20,738 crore during the first quarter ended June 2019 as against Rs 19,799 crore in the year-ago period.
For the June quarter, Airtel's India Average Revenue Per User - a key performance metric of mobile phone operators - stood at Rs 129 against Rs 123 in the March quarter
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