The majority of service providers in the Indian telecom market continued to register declining profits during the quarter ended June 30, 2012. Regulatory uncertainty and competition, combined with the high interest costs associated with 3G investments and roll-outs, continued to put pressure on companies? bottom lines.

Bharti Airtel registered a decline in profits for the tenth consecutive quarter. The net profit from Indian operations of Vodafone Plc also dropped during the quarter ended June 30, 2012. Tata Teleservices (Maharashtra) Limited (TTML) and GTL Limited witnessed an increase in net losses as compared to the corresponding period in 2011.

However, Idea Cellular reported higher net profits for the quarter ended June 2012 as compared to the corresponding period in 2011, while Sify Technologies and Tata Communications Limited witnessed a decline in their net losses.

tele.net takes stock of the financial performance of key telecom companies?

Bharti Airtel

Bharti Airtel?s consolidated net profits dropped by 37.28 per cent from Rs 12.15 billion for the quarter ended June 2011 to Rs 7.62 billion in the corresponding quarter in 2012. This can be attributed to the stiff competition and regulatory uncertainty prevailing in the sector.

The operator?s revenues grew by 14 per cent from Rs 169.82 billion to Rs 193.61 billion during the same period. Revenues from Indian and South Asian operations stood at Rs 137.18 billion (70 per cent of total revenues) and those from the African business were Rs 57.57 billion.

The operator?s earnings before interest, taxes, depreciation and amortisation (EBITDA) increased from Rs 57.06 billion during the quarter ended June 2011 to Rs 58.49 billion in the corresponding quarter in 2012. The EBITDA margin, however, declined from 33.6 per cent to 30.2 per cent during the same period. The total debt for the quarter ended June 2012 stood at Rs 682.98 billion as compared to Rs 600 billion during the corresponding period in 2011.

Idea Cellular

Idea Cellular reported a 32 per cent increase in its consolidated net profit from Rs 1.77 billion for the quarter ended June 2011 to Rs 2.34 billion in the corresponding quarter in 2012. Revenues increased by 21.7 per cent from Rs 45.2 billion to Rs 55.03 billion during the same period, while the share of value-added services (VAS) in service revenues increased from 12.1 per cent to 14.5 per cent.

The EBITDA grew from Rs 10.67 billion to Rs 12.89 billion, but the EBITDA margin dropped from 23.4 per cent to 23.3 per cent. The cash profit increased from Rs 9.58 billion to Rs 11.52 billion during the same period.

The net debt stood at Rs 114.9 billion during the quarter under review. The operator?s capex guidance for 2012-13 stands at Rs 35 billion, excluding payments towards spectrum.

Reliance Communications

Reliance Communications (RCOM) reported a 3.2 per cent increase in its consolidated net profit from Rs 1.57 billion in the quarter ended June 2011 to Rs 1.62 billion in the corresponding quarter in 2012. Revenues increased by 8 per cent from Rs 49.25 billion to Rs 53.19 billion during the same period. Revenues from the wireless segment accounted for over 60 per cent of the total revenues earned during the quarter under review. The EBITDA increased from Rs 16.02 billion to Rs 16.5 billion. However, the EBITDA margin decreased from 32.4 per cent to 31 per cent. The net debt for the company stood at Rs 356.49 billion during the quarter under review.

Himachal Futuristic Communications Limited

Himachal Futuristic Communications Limited (HFCL) reported an increase of 29 per cent in net profit from Rs 136.7 million during the quarter ended June 2011 to Rs 176.5 million during the corresponding quarter in 2012. The company witnessed a massive 160 per cent jump in revenues from Rs 484.7 million to Rs 1.27 billion during the same period. This is primarily due to the Rs 122.5 million earned by HFCL on account of sale of a prior investment, the details of which have not been disclosed by the company. HFCL?s margins more than doubled in the turnkey contracts and services business, from Rs 98.2 million during the quarter ended June 2011 to Rs 215.1 million during the corresponding quarter in 2012.

Vodafone India

The operator reported a marginal drop in service revenues from ?1.04 billion for the quarter ended June 2011 to ?1.03 billion in the corresponding quarter in 2012. Voice services continued to be the largest contributor to revenues, followed by data applications. Revenues from voice services during the quarter ended June 2012 stood at ?809 million and those from data services were reported at ?83 million.

TTML

TTML?s net losses increased from Rs 1.19 billion during the quarter ended June 2011 to Rs 1.63 billion for the corresponding quarter in 2012. Revenues increased by 11.84 per cent from Rs 5.91 billion to Rs 6.61 billion during the same period. Revenues from VAS and data services accounted for 35 per cent of the total wireless revenues for the quarter ended June 2012. TTML?s EBITDA stood at Rs 1.34 billion during the quarter.

Tata Communications

Tata Communications? losses came down from Rs 2.78 billion during the quarter ended June 2011 to Rs 1.42 billion for the corresponding period in 2012. The consolidated revenues increased by 26 per cent from Rs 32.57 billion to Rs 41 billion during the same period. Revenues from global voice services stood at Rs 1.59 billion during the quarter ended June 2012. The company turned EBIT positive during this quarter at the consolidated level.

GTL Limited

GTL Limited reported a consolidated net loss of Rs 2.04 billion for the quarter ended June 2012 as compared to a net profit of Rs 120 million in the corresponding period in 2011. The company?s revenues decreased by 25 per cent from Rs 8.2 billion for the quarter ended June 2011 to Rs 6.15 billion in the corresponding period in 2012. The consolidated EBITDA dropped from Rs 1.18 billion to Rs 76.1 million during the same period.

GTL Infrastructure Limited

GTL infrastructure reported an increase of 3.7 per cent in consolidated revenues from Rs 3.45 billion in the quarter ended June 2011 to Rs 3.58 billion for the corresponding period in 2012. The consolidated EBITDA dropped from Rs 1.96 billion during the quarter ended June 2011 to Rs 1.94 billion in the corresponding quarter in 2012. The company?s net losses increased from Rs 839.5 million to Rs 851.6 million during the same period.

After a long restructuring process, GTL Infrastructure is likely to finalise a cashless exchange offer with holders of its foreign currency convertible bonds. The restructuring proposal has received bondholders? approval and the company is planning to complete the deal by mid-September 2012, subject to the Reserve Bank of India?s approval.

Sify Technologies

Sify Technologies? net losses decreased from Rs 111 million in the quarter ended June 2011 to Rs 68 million for the corresponding quarter in 2012. Its EBITDA increased from Rs 109 million to Rs 179 million during the same period. The company?s revenues for the quarter ended June 2012 stood at Rs 1.97 billion. Of this, the enterprise segment accounted for Rs 1.81 billion.

Uninor

Norway-based Telenor, the majority shareholder in Uninor, reported a 48.13 per cent revenue growth from its Indian operations for the quarter ended June 2012 over the corresponding period in 2011. The operator?s revenues during the quarter ended June 2012 stood at NOK 1,034 million as compared to NOK 698 million in the corresponding quarter in 2011. Its operating losses reduced from NOK 965 million to NOK 619 million  during the same period.

Sterlite Technologies

Revenues from the company?s telecom business stood at Rs 2.76 billion for the quarter ended June 2012, as compared to Rs 1.46 billion in the corresponding period in 2011. The total revenues increased from Rs 5.47 billion to Rs 8.66 billion during the same period.