By Saurabh Chaturvedi
Bharti Airtel Ltd. (532454.BY) reported its fiscal second-quarter results on Thursday. Here's what you need to know:
NET LOSS: Bharti Airtel Ltd. (532454.BY) posted a net loss of 230.45 billion rupees ($3.20 billion) in the second quarter as compared with a net profit of INR1.19 billion a year earlier. The net loss was bigger than a INR12.87 billion net loss estimated in a poll by FactSet.
TOTAL INCOME: Total income--comprising the firm's revenue and other income--came in at INR211.99 billion compared with INR202.30 billion in the same quarter last year.
WHAT WE WATCHED:
--LEVY: Bharti Airtel said it has made a provision of INR284.50 billion to pay overdue levies and interests to the government following the Indian Supreme Court's ruling last month on a dispute over licensing fees. "Management says it is reviewing its options available, including filing petitions before the SC, and is also hopeful of government relief," Citi said in a note.
--COMMENTARY: The company said it will require "significant additional financing to discharge its obligations under the court judgment." But it noted that there was no assurance that the management would be able to access additional sources of finance to the extent required, on terms acceptable to the group, and to raise the amounts in a timely manner. "This represents a material uncertainty whereby, it may be unable to realize its assets and discharge its liabilities in the normal course of business, and accordingly may cast significant doubt on the group's ability to continue as a going concern," Bharti Airtel said.
--MARGIN: The earnings before interest, tax, depreciation and amortization or EBITDA margin--a measure of a company's operating profit as a percentage of its revenue--at its India business grew to 41.2% in the quarter versus 28.5% a year earlier, as revenues in the region rose due to the doubling of mobile data traffic and growth in subscribers.
Write to Saurabh Chaturvedi at firstname.lastname@example.org