Bharti Airtel: Weak show shrugged off



The stock of Bharti Airtel rallied about 11.5 per cent last week despite the company’s weak September 2017 quarter results. The company’s profit in the quarter fell 77 per cent y-o-y and revenue declined 12 per cent, due to the impact of intense competition.

The stock has been rallying the past few weeks. The market seems positive about Airtel’s prospects amidst the sector consolidation — a view bolstered by Airtel’s acquisition of Tata Communications’ business on attractive terms. Also, the company’s investment in its spectrum portfolio, growing data business, plans to launch VoLTE and initiatives to tap both the higher and lower end of the market have aided sentiment. In the September quarter, Airtel’s data customer base increased about 5 per cent y-o-y and data usage per customer rose 300 per cent.

The company’s plans to consider stake sale in Bharti Infratel seem to have been well received in the market. Besides, the September quarter results seem to have been better than market expectations.

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