Indian telecom companies recently reported their financial results for the quarter ended March 2011 and for the fiscal year ended March 2011. tele.net takes a look at the financial performance of some of these companies?

Bharti airtel 

Bharti airtel reported a 31 per cent drop in the consolidated net profit, from Rs 20.44 billion in the quarter ended March 2010 to Rs 14 billion in the quarter ended March 2011. This can be largely attributed to the huge investments made by the operator during the quarter both in the global market as well as in 3G service rollout in India.

The margins from the African venture, which was acquired by the company in June 2011, continue to be in the red. Though the African business is expected to record losses for some time in the future, the company remains positive about it. Foreign exchange fluctuations also had a negative impact on airtel?s profits.

However, the company?s revenues increased by 51 per cent to Rs 162.66 billion for the quarter ended March 2011, from Rs 107.49 billion for the corresponding quarter in 2010. This growth is largely due to the inclusion of the three-quarter-old African business. The operator?s EBITDA (earnings before interest, taxes, depreciation and amortisation) for the quarter ended March 2011 was 33.5 per cent as compared to 38 per cent for the quarter ended March 2010.

Its capex for the quarter ended March 2011 was Rs 48 billion, up 158.62 per cent from Rs 18.56 billion in the quarter ended March 2010. The net debt on Bharti airtel?s books also increased from Rs 23.92 billion to Rs 599.51 billion during this period.

The company?s subscriber base in India grew by 27.1 per cent year-on-year, from 127.61 million on March 31, 2010 to 162.20 million on March 31, 2011. Bharti airtel?s ARPUs in this market dropped by 12 per cent from Rs 220 for the quarter ended March 2010 to Rs 194 for the quarter ended March 2011. Its minutes of usage (MoUs) per user in India also declined from 468 minutes to 449 minutes during this period.

The company?s consolidated net revenues for the year ended March 31, 2011 stood at Rs 594.67 billion, registering a 42.1 per cent year-on-year growth owing to its African operations. Its revenues from India and South Asia increased by 11 per cent during this period. The consolidated EBITDA margin for the year ended March 2011 was 33.6 per cent, marking a decline of 6.5 per cent over the previous year. This can be attributed to the pricing pressure in India and South Asia, and the low margins in Africa.

TTML 

Tata Teleservices (Maharashtra) Limited (TTML) reported an annual net profit of Rs 499 million for the year ended March 2011 as compared to a net loss of Rs 2.98 billion in the previous fiscal year. The positive bottom line can be attributed to the inclusion of profit from the sale of the company?s tower subsidiary, 21st Century Infra Tele Limited, to Viom Networks during the quarter ended June 2010. TTML?s consolidated annual income stood at Rs 22.93 billion for the year ended March 2011, up 2 per cent from Rs 22.49 billion for the year ended March 2010. However, the results of the 2010-11 fiscal are not comparable to those of the previous financial year as TTML included the income from the sale of its tower subsidiary.

The revenue contribution of the operator?s value-added services and data services in the total wireless revenues for the year ended March 2011 increased to 22.9 per cent from 14.6 per cent in the previous fiscal. TTML also witnessed a 24 per cent growth in gross MoUs for its wireless services during this period.

The operator, which has a subscriber base of 16.9 million, paid a licence fee of Rs 12.6 billion for 3G spectrum in the Maharashtra circle.

Sterlite Technologies 

Sterlite Technologies reported a substantial drop in the stand-alone net profit for the quarter ended March 2011.  The company?s profits declined by 85.73 per cent from Rs 722 million for the quarter ended March 2010 to Rs 103 million for the quarter ended March 2011. Its net sales increased by 3 per cent to Rs 6.82 billion from Rs 6.62 billion during this period. The total income also increased by 2.22 per cent to Rs 6,823 million.

The company reported a 6.9 per cent decrease in consolidated net revenues for the year ended March 2011. Its net revenues dropped from Rs 24.31 billion for the year ended March 2010 to Rs 22.62 billion for the year ended March 2011. Sterlite?s net profit also declined by 42.44 per cent from Rs 2.45 billion to Rs 1.41 billion during this period. The company?s telecom business generated revenues of Rs 6.57 billion at an EBITDA margin of 26 per cent for the 2010-11 fiscal.

GTL Limited 

GTL Limited recorded a 12.69 per cent increase in its consolidated net profit for the quarter ended March 2011. The company?s net profit for the quarter ended March 2011 increased to Rs 484.71 million from Rs 430.12 million for the quarter ended March 2010. Its consolidated revenues from global operations increased to Rs 7.95 billion for the quarter ended March 2011 from Rs 6.24 billion for the corresponding quarter in 2010, recording a year-on-year growth of 27 per cent. The EBITDA for the quarter ended March 2011 was Rs 1.25 billion as against Rs 898.6 million for the corresponding quarter in the previous year, representing a year-on-year growth of 39 per cent.

The company?s consolidated revenues for the year ended March 2011 stood at Rs 31.3 billion as against Rs 22.36 billion for the year ended March 2010, recording a year-on-year growth of 40 per cent. However, GTL?s net profit decreased by 10.19 per cent from Rs 2.06 billion for the year ended March 2010 to Rs 1.85 billion for the year ended March 2011. Its EBITDA increased by 46 per cent to Rs 4.97 billion from Rs 3.4 billion during this period.

GTL Infrastructure 

GTL Infrastructure reported a stand-alone net loss of Rs 417.9 million for the quarter ended March 2011 as compared to a net loss of Rs 64.4 million for the corresponding quarter in the previous year. The company?s stand-alone net revenues stood at Rs 1.39 billion for the quarter ended March 2011, up 35 per cent from Rs 1.03 billion in the corresponding quarter of the previous year. The EBITDA for the quarter ended March 2011 was Rs 805.5 million as against Rs 573.2 million for the quarter ended March 2010, representing a year-on-year growth of 41 per cent.

For 2010-11, the company reported revenues of Rs 4.9 billion on a stand-alone basis. This marked a 41.21 per cent growth over the revenues of Rs 3.47 billion for the year ended March 2010. The EBITDA for the year ended March 2011 was Rs 5.82 billion as against Rs 1.9 billion in the year ended March 2010, recording a year-on-year growth of 205 per cent. 

The company is currently operational in all 22 telecom circles. Its total number of towers on a consolidated basis increased from 32,463 in December 2010 to 32,650 at end-March 2011. GTL Infrastructure has all major telecom operators as tenants with contracts valid for 10-15 years.