Shares of Bharti Airtel on Thursday fell nearly 2% after the company reported its lowest profit in four years as demonetization and intense competition with Reliance Jio hit revenues. The stock ended the day at Rs 311.55, down 1.52% on BSE. Intra-day, it declined by 3.87% to Rs 304.10. On NSE, shares of the company went down by 1.62% to close at Rs 311.35.
The company’s market valuation dropped by Rs 1,918 crore to Rs 1,24,539 crore. In terms of volume, 4.69 lakh shares of the company were traded on BSE and over one crore shares changed hands on NSE during the day. Consolidated net profit in October-December period fell 54% 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 on Tuesday.
“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% to Rs 23,363.9 crore in the third quarter of the current fiscal. Mobile data revenue slowed to Rs 4,049 crore due to “free voice and data offering by a new operator”.