Bharti Airtel recorded its lowest quarterly figures of last 4 years in the last quarter of financial year 2016-17. According to the data release by the company on Tuesday, it has registered a drop of over 72% as compared to the last quarter of 2015-16.
Airtel’s voice as well as data segments are suffering because of aggressive tactics of Reliance Jio. The estimated net profit was ₹373 crores in January – March 2017, down from ₹504 crores a quarter earlier. The revenue fell 12% to ₹21,935 crores as compared to the data a year earlier.
Speaking on the figures, Gopal Vittal, MD & CEO – Airtel India & South Asia, stated that the entry of new operator has triggered the price war in Indian telecom industry and added that the sub-standard pricing has resulted in revenue decline for the first time ever.
Vittal also added that to handle the incoming voice traffic from Jio’s network also resulted in significant investment to handle the traffic. This has also been a reason behind the continuous downfall of revenue. Airtel registered a total revenue of ₹73,422 crore in FY17 with a growth rate of 3.6%. Consolidated net profit for full fiscal year fell 37% and recorded a figure of ₹3,800 crores.
Though the data was announced after the market hours on Tuesday, its shares fell 1.6% before closing at ₹345.50