61% profit is reported by Bharti Infratel with the year-on-year jump in gaining the second quarter of FY20. It was helped by a change in standard in accounting that lowered the cost of operations operating supported by increased net finance income.
With net profit for the July-September period close to Rs 964 crore, Bharti is India’s only listed telecom tower company. Previously it was reported to have a net profit of Rs 887 crore in June quarter 19, and this is more than that.
There was a reduction of 19% in the company’s consolidated expenses for the September quarter, to Rs 1,752.7 crore. The biggest contributors were power & fuel, which dropped 3 %, followed by repairs & maintenance expenses that dropped 9 %. No rent was paid in the just-ended quarter, against Rs 3,168 crore rental expense of a year back.
But depreciation and amortization cost reached close to Rs 786.5 crore accounting to 32 % on year to year. Net quarterly finance income rose to Rs 1,251 crore compared with a net finance cost of Rs 442 crore a year back. It supported net profit.
“Positive trend was continued by Bharti Infratel in quarterly net additions on both towers and co-locations. This happened during the quarter ended September 30, 2019,”. It was said by Bharti Infratel chairman Akhil Gupta, in a statement.
Deployment of mobile telecom antennae of multiple carriers on a single structure, called Co-locations. This strategy also helped in the process. The overall approach of cost reductions in operations and other business gains supported Bharti to achieve the results.
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