Bharti Airtel, country's biggest mobile operator, on Tuesday announced slide in its net profit for the 15th consecutive quarter. Company's net profit fell by 29 per cent in Q2 FY14 to Rs 512 crore from Rs 721.2 crore during Q2 FY13.
As per the statement issued by the telecom major, profit dropped mainly due to an increase in finance costs and forex losses on account of rupee depreciation.
The statement said, "The continued depreciation of the Indian rupee has resulted in forex restatement and derivative losses of Rs 342 crore versus Rs 25 crore loss for Q2 FY13. Consequently, the consolidated net income came at Rs 512 crore, as against Rs 721 crore in the corresponding quarter last year."
On revenue front, telecom major's consolidated revenue during the second quarter grew by 10 per cent to Rs 21,342.8 crore from Rs 19,408.5 crore in the same quarter last fiscal. The most robust performance for the company was shown by its data business. Revenue from the mobile Internet segment doubled to Rs 1,503 crore from a year earlier and now contributes 39.1 per cent of the overall incremental revenue.
The company last month increased mobile Internet rates by about 25 per cent and reduced benefits under certain schemes by about 50 per cent. For voice services, Airtel cut back on discounted minutes, helping to increase realisations. Company's consolidated net debt also reduced to $ 9,697 million as on Q2 FY14.
Hinting at further rate hikes, Airtel's Joint Managing Director and CEO Gopal Vittal said, "Tariffs today in this country are at absolutely unsustainable levels." He, however, said that while the company has not increased headline tariffs till now, it will look at improving realisation rates by cutting discounts.
"On a secular basis, there is no other way but for these rates to increase. We still believe there is lot of headroom to cut back on discounts and improve realisation. As of now, we haven't touched the headline rates," he further added.