On a consolidated basis, Bharti Infratel's net profit dropped 24% to Rs 733 crore on 5.9% increase in net sales to Rs 1,766.40 crore in Q2 September 2020 over Q2 September 2019.
Consolidated profit before tax (PBT) skid 19.9% to Rs 884 crore in Q2 September 2020 as against Rs 1,103.20 crore in Q2 September 2019. Current tax expense for the quarter surged 146.80% to Rs 154.50 crore as against Rs 62.60 crore in Q2 September 2019. The Q2 result was declared after market hours yesterday, 22 October 2020.
Consolidated EBITDA declined 3% year-on-year to Rs 1,836 crore, representing an operating margin of 49.7%. The operating free cash flow was at Rs 1,035 crore during the quarter, slipping 4% as against Rs 1,080 crore in Q2FY20.
The return on equity pre-tax and post-tax decreased to 29.1% and 21.8% as against 32.6% and 28.1% respectively on Y-o-Y basis. The return on capital employed pre-tax was 23.0% against 25.7% respectively on Y-o-Y basis.
Akhil Gupta, the chairman of Bharti Infratel, commented: "In a major development relating to merger of Indus and Infratel, National Company Law Tribunal (NCLT) has given its approval to the aforesaid merger which has been in process for a long time. The filing with Registrar of Companies (ROC) post final closing based on agreed closing adjustments is likely to be done within 30 days. To facilitate integration and to ensure continuity, the Board of Directors of Infratel today appointed Mr. Bimal Dayal, the current MD & CEO of Indus Towers and the proposed CEO of the merged entity by the Shareholder Groups (Bharti Airtel and Vodafone Plc) as the MD of Bharti Infratel with immediate effect."
"On the operational side, both Indus and Infratel have continued supporting the telecom service providers in enhancing connectivity in the ongoing COVID-19 crisis. During the quarter, we have witnessed the highest net tower additions in the last eight years and the highest net colocation additions in the last three years. This is testament to the demand potential for telecom services and therefore telecom infrastructure in the country. Also, with major regulatory uncertainties behind us, we expect operators to focus on their networks both in expanding the reach and coverage of 4G and introduction of newer technologies in the future. With a strong balance sheet along with industry leadership, we remain well poised to be the beneficiaries of data-led growth in the sector."
Total Tower base rose 4.13% to 97,283 units in Q2 September 2020 compared with 93,421 units in Q2 September 2019.
Meanwhile, the board on 22 October 2020 has appointed Bimal Dayal as managing director (MD) of Bharti Infratel from 22 October 2020 up till the effective date of amalgamation between Indus Towers and the company.
Shares of Bharti Infratel rose 1.25% to Rs 198.50.
Bharti Infratel is India's leading provider passive telecom infrastructure and it deploys, owns and manages telecom towers and communication structures, for various mobile operators. The company's consolidated portfolio of over 95,000 telecom towers, which includes over 43,000 of its own towers and the balance from its 42% equity interest in Indus Towers, makes it one of the largest tower infrastructure providers in the country with presence in all 22 telecom circles.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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