Bharti Infratel : Q3 Net Profit Rises By 62%

Bharti Infratel (BIL), one of the biggest telecom tower infrastructure provider companies in India, posted encouraging performance during the third quarter of FY14. BIL’s consolidated net sales improved by 4% and its EBITDA and PAT margin boosted by 4.2% and 5.4% respectively on YoY basis.

Consolidated net sales increased to Rs 2731 crore in Q3FY14 compared to the revenue posted a year ago. Out of its two major revenue sources - rent and energy & other reimbursements, the later has outperformed and showed a growth of 8% (Rs 10759 crore in Q3FY14). Its other segment, rental income, which contributes about 61% of topline, has shown a growth of 1.4% stood at Rs 16552 crore during the same period. The total number of towers installed by the company increased from 81,389 to 82,813 in December quarter of FY14 (YoY).

Also, the operating expenses have declined on yearly basis, by 3% to Rs 1602.8 crore. The reduction is primarily due to the decrease in rent expense followed by the lower other expenses. In addition the repair and maintenance expense has also reduced in the quarter on yearly basis. Backed by the higher sales and decline in operating expenses, EBITDA jumped by 15.7% came in at Rs 1128 crore on YoY basis. Net Profit reached to Rs 410.5 crore in Q3FY14 against Rs 254 crore in Q3FY13, resulted, as a sharp decline of 20.5% in finance expenses to Rs 79 crore, and growth of Rs 28 crore in other income.

The revenue per tower per month has also improved by 2% on sequential basis, though the cost of tower per month has showed marginal increase of 0.4%.

After, the Q3FY14 result announcement of company, the stock price moved up by 1.73% and closed at Rs 167.90 (January 23, 2013).