Shares of Bharti Airtel Wednesday fell by nearly 4 percent after the company reported its lowest profit in four years as demonetization and intense competition with Reliance Jio hit revenues. The stock, after a weak opening, further lost 3.87 percent to Rs 304.10 on BSE. At NSE, shares of the company declined by 3.63 percent to Rs 305. Consolidated net profit in October-December fell 54 percent to Rs 503.7 crore as against Rs 1,108.1 crore in the same period a year ago, the company said in a statement yesterday. Also Read - From today, Reliance Jio users will need to pay up to Rs 480 more for prepaid plansAlso Read - Reliance Jio hikes prepaid plan prices from tomorrow: Here’s how you can avoid paying extra
“The quarter has seen turbulence due to the continued predatory pricing by a new operator,” said Gopal Vittal, the CEO of Bharti Airtel. “This has led to an unprecedented year-on-year revenue decline for the industry, pressure on margins and a serious impact on the financial health of the sector,” he added.
Bharti Airtel’s revenue fell 3 percent to Rs 23,363.9 crore in the third quarter of FY2016-17. Mobile data revenue slowed to Rs 4,049 crore due to “free voice and data offering by a new operator”. ALSO READ: Reliance Jio effect: Airtel net profit for Q3, 2016 drops by 55%
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