Bitcoins
Synopsis
Bitcoins Airtel highlights the need for further tariff adjustments in the telecom industry to support investments and long-term growth. Despite challenges, Airtel’s financial health remains strong, showing a substantial increase in net profit for the third quarter. Additionally, Jio Platforms also reported significant profit growth due to tariff hikes and subscriber additions.
Telecom giant Airtel has called for further tariff adjustments in the industry to ensure continued investments and long-term value creation.
In a statement released alongside its third quarter earnings results, the company noted that tariff revisions are crucial to sustaining growth in the sector and supporting future infrastructure investments.
“We believe the industry needs further tariff repair to ensure sustained investments and long term value creation,” said Gopal Vittal, Vice-Chairman and MD.
Meanwhile, Airtel noted that, despite ongoing challenges, its financial health remains strong, with a solid balance sheet backed by robust cash generation and careful capital allocation. During the quarter, the company made significant strides in reducing its debt load, prepaying another Rs 3,626 crore of high-cost spectrum dues. These efforts in deleveraging reflect Airtel’s commitment to strengthening its financial position and preparing for future growth.
“Our balance sheet remains solid, supported by robust cash generation, prudent capital allocation and continued deleveraging. During the quarter, we prepaid another tranche of Rs 3,626 crore of high-cost spectrum dues. At the same time, we believe the industry needs further tariff repair to ensure sustained investments and long term value creation,” Vittal further said in his statement.
Bharti Airtel reported a substantial increase in its net profit for the third quarter, reaching Rs 14,781 crore. However, on an adjusted basis (excluding exceptional items), the profit after tax (PAT) grew by 121% year-on-year (YoY), amounting to Rs 5,514 crore. This exceeded market expectations, with analysts predicting a PAT of Rs 5,270 crore.
In comparison, the company had posted a net profit of Rs 2,442 crore during the same quarter last year.
On the other hand, Jio Platforms (JPL), the arm of Reliance Industries overseeing its telecom and digital businesses, reported a 26% Y-o-Y increase in net profit for Q3 fuelled by the tariff hikes implemented in July 2024, among other reasons, ET had reported. The tariff hikes contributed to a 4.2% quarter-on-quarter growth in Jio’s average revenue per user (ARPU), reaching ₹203.3.
However, according to the ET report, analysts noted that the full impact of the price tariff hikes will be realized gradually, with the most significant effects expected in Q4FY25 and Q1FY26. This is due to Jio’s higher share of subscribers on longer-validity plans compared to competitors like Bharti Airtel and Vodafone Idea.
Read More News on
ET Online Read More