Telecom companies continued to witness a slow growth in income during 2011-12. Most service providers recorded a decline in their profits while some registered an increase in their losses. Vodafone India and Tulip Telecom were among the few companies that witnessed a growth in net profits.

tele.net reviews the financial results of telecom companies for the quarter ended March 31, 2012 as well as their annual results for 2011-12…

Bharti Airtel

The operator reported a 28.19 per cent decline in its net profit, from Rs 14.01 billion for the quarter ended March 31, 2011 to Rs 10.06 billion in the corresponding quarter in 2012. The dip in profit was on account of high interest costs and increased competition in the telecom market worldwide. However, the company?s revenue increased by 15 per cent, from Rs 162.93 billion to Rs 187.29 billion.

On an annual basis, Bharti Airtel?s net profit declined by 29.6 per cent, from Rs 60.47 billion in 2010-11 to Rs 42.59 billion in 2011-12. The company?s total revenue grew by 20 per cent to Rs 714.51 billion from Rs 595.38 billion.

Idea Cellular

The operator reported a 12.93 per cent decline in its net profit, from Rs 2.75 billion for the quarter ended March 31, 2011 to Rs 2.39 billion for the corresponding quarter in 2012. Its total revenue increased by 26.8 per cent, from Rs 42.35 billion to Rs 53.69 billion.

On an annual basis, the operator posted a decline of 19.57 per cent in its net profit, from Rs 8.99 billion  in 2010-11 to Rs 7.23 billion in 2011-12. The company?s total income for 2011-12 stood at Rs 195.41 billion as compared to Rs 155.03 billion in 2010-11, an increase of 26.05 per cent.

RCOM

Reliance Communications (RCOM) reported a 32.58 per cent decline in its revenue, from Rs 78.76 billion during the quarter ended March 31, 2011 to Rs 53.1 billion for the quarter ended March 31, 2012. Further, RCOM?s earnings before interest, taxes, depreciation and amortisation (EBITDA) decreased, from Rs 41.22 billion to Rs 16.32 billion during the same period.

The company, however, reported an increase in its net profit, from Rs 1.69 billion to Rs 3.32 billion.

RCOM reported a decline in its revenue for the year 2011-12, which stood at Rs 203.82 billion as compared to Rs 231.08 billion in 2010-11. The company?s EBITDA decreased, from Rs 90.82 billion in 2010-11 to Rs 64.89 billion in 2011-12. Further, its net profit also dropped, from Rs 13.46 billion to Rs 9.29 billion during the same period.

MTNL

For the quarter ended March 31, 2012, Mahanagar Telephone Nigam Limited?s (MTNL) total income grew by 4.46 per cent, from Rs 8.07 billion for the quarter ended March 31, 2011 to Rs 8.43 billion for the quarter ended March 31, 2012. The operator?s administrative and operational expenditure declined from Rs 2.32 billion to Rs 1.93 billion.

Despite the growth in income, MTNL?s loss increased, from Rs 10.99 billion to Rs 13.74 billion. This was mainly on account of high interest costs on loans and provisions for employee retirement benefits during the year, which stood at Rs 5.57 million for the quarter ended March 31, 2012 as compared to Rs 4.08 billion in the corresponding quarter of the previous year.

Vodafone India

Vodafone India registered a 19.5 per cent increase in its service revenues, from Rs 269.37 billion in 2010-11 to Rs 321.84 billion in 2011-12. The operator?s consolidated EBITDA increased by 21.6 per cent, from Rs 70.3 billion in 2010-11 to Rs 85.49 billion in 2011-12.

Vodafone India has shown strong cash flow conversion, with its operating free cash flow increasing from Rs 32.56 billion in 2010-11 to Rs 42.41 billion in 2011-12.

SSTL

Sistema Shyam TeleServices Limited?s (SSTL) net loss declined, from Rs 6.66 billion during the quarter ended March 31, 2011 to Rs 5.28 billion during the corresponding quarter in 2012. The company?s revenue increased by 72 per cent, from Rs 2.36 billion to Rs 4.07 billion.

GTL Infrastructure Limited

GTL Infrastructure Limited?s net loss stood at Rs 0.77 billion for the quarter ended March 31, 2012 as compared to Rs 0.42 billion for the corresponding quarter in 2011. However, the company?s income increased from Rs 1.3 billion to Rs 1.39 billion.

GTL Infrastructure?s consolidated net revenue increased, from Rs 10.07 billion in 2010-11 to Rs 13.98 billion in 2011-12. The net loss, however, increased from Rs 5.74 billion to Rs 9.97 billion.

GTL Limited

GTL Limited recorded a net loss of Rs 2.46 billion in the quarter ended March 31, 2012. The company had reported a net profit of Rs 0.49 billion  in the corresponding quarter in 2011. The total income from operations declined, from Rs 7.76 billion during the quarter ended March 2011 to Rs 5.66 billion for the corresponding quarter in 2012.

For the nine-month period June 1, 2011 to March 31, 2012, the company?s revenue stood at Rs 18.67 billion. It registered a net loss of Rs 4.57 billion during this period.

Tata Communications

Tata Communications registered an in-crease in its income, from Rs 30.68 billion in the quarter ended March 31, 2011 to Rs 39.61 billion in the quarter ended March 31, 2012. The company?s loss increased from Rs 1.37 billion to Rs 1.4 billion during this period.

The company registered an increase in its consolidated gross revenue, from Rs 119.32 billion for 2010-11 to Rs 141.96 billion for 2011-12. Its net loss for 2011-12 stood at Rs 7.83 billion as compared to Rs 6.97 billion in 2010-11.

Further, Tata Communications? South African business, Neotel, registered an increase in its revenue, from Rs 6.11 billion in 2010-11 to Rs 17.38 billion in 2011-12. The business delivered a positive EBITDA on a stand-alone basis for the first time.

Tulip Telecom

Tulip Telecom?s net consolidated profit declined by 20.13 per cent, from Rs 0.82 billion for the quarter ended March 31, 2011 to Rs 0.66 billion for the quarter ended March 31, 2012. The company?s total consolidated income increased by 3.72 per cent, from Rs 6.38 billion to Rs 6.62 billion during this period.

For 2011-12, the company reported a net profit of Rs 3.1 billion as compared to Rs 3.06 billion in 2010-11, an increase of 1.06 per cent. Tulip Telecom?s total consolidated income increased by 15.06 per cent, from Rs 23.51 billion for the year ended March 31, 2011 to Rs 27.05 billion for the year ended March 31, 2012.

Sterlite Technologies

Sterlite Technologies registered an increase of 74.02 per cent in its net profit, from Rs 0.1 billion in the quarter ended March 31, 2011 to Rs 0.16 billion for the quarter ended March 31, 2012. The company also witnessed an increase in its total income, from Rs 6.82 billion to Rs 8.09 billion during this period.

On an annual basis, the company?s net income increased, from Rs 22.62 billion in 2010-11 to Rs 26.21 billion in 2011-12. Its net profit decreased from Rs 1.4 billion in 2010-11 to Rs 0.39 billion in 2011-12.