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Bharti Airtel's quarterly profit drops 49 per cent, blames tax increase

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(Globalpost/GlobalPost)

MUMBAI, India - Bharti Airtel, India's biggest telecommunications company, reported Thursday that quarterly net profit fell by nearly half to 5.1 billion rupees ($94.7 million) on higher taxes and operating costs.

The company said revenue for the January-March final quarter of its fiscal year rose 9.2 per cent from a year earlier to 205 billion rupees ($3.8 billion).

However, a tax increase of 1.3 billion rupees ($24.8 million) for the quarter over the previous year cut into profits, accounting for about half of the steep year-on-year drop.

Higher operating costs, including investments in network expansion, also contributed to the fall in earnings.

India's mobile phone companies have been in a price war for several years that has dented earnings but Bharti said the situation eased in the latest quarter.

http://www.globalpost.com/dispatch/news/the-canadian-press/130502/bharti-airtels-quarterly-profit-drops-49-cent-blames-tax-inc