Bharti Infratel reports 7% YoY rise in net profit, declares a third interim dividend of Rs 4.10

Bharti Infratel on April 23 reported a 7 percent YoY rise in its net profit at Rs 650 crore for the quarter ended March 31.

The company said its consolidated revenue for the quarter stood at Rs 3,624 crore, up 1 percent YoY against Rs 3,600 crore reported in the March quarter of FY19.

Consolidated EBITDA came at Rs 1,721 crore, up 12 percent YoY, and representing an operating margin of 47.5 percent.

The operating free cash flow was at Rs 847 crore during the said quarter, down by 27 percent YoY.

The return on equity (RoE) pre-tax and post-tax increased to 30.1 percent and 24.3 percent as against 26.1 percent and 15.8 percent, respectively on a YoY basis, the company said.

The return on capital employed (RoCE) pre-tax was 24.3 percent against 31.8 percent on a YoY basis.

The company declared a third interim dividend of Rs 4.10 per equity share of Rs 10 each for the financial year 2019-20.

This along with the two interim dividends of Rs 3.65 and Rs 2.75, would result in a total dividend of Rs 10.5 per equity share of Rs 10 each for the financial year 2019-20.

The board of directors took note of the status of the scheme of arrangement between Indus and Bharti Infratel and have further extended the long stop date till June 24, 2020, subject to agreement on closing adjustments and other conditions precedent for closing, with each party retaining the right to terminate and withdraw the scheme, said the company.

Commenting on the results, Akhil Gupta, Chairman, Bharti Infratel Limited, said: “After a few tumultuous years, the Indian telecom industry took much needed constructive measures in the year gone by in the form of tariff increases. This along with encouraging trends on overall wireless data consumption has led to enhanced focus on improving the quality of networks. As a result, during the year both Bharti Infratel and Indus Towers witnessed an increase in gross additions both on towers and co-locations on a year-on-year basis."

"We believe this is a harbinger of the future especially as witnessed in the current environment of the COVID-19 crisis, where the nation’s dependence on wireless networks has been further elevated. We as part of the telecom passive infrastructure industry are fully committed to supporting the Government and our customers, the telecom operators in the journey of India becoming a global benchmark in digital connectivity and inclusion,” he said.

First Anniversary Offer: Subscribe to Moneycontrol PRO’s annual plan for ₹1/- per day for the first year and claim exclusive benefits worth ₹20,000. Coupon code: PRO365