Friday, October 30, 2009

Bharti scrip nosedives 6 percent after poor results

Telecom major Bharti Airtel's scrip Friday fell 6.38 percent lower than its previous close at the Bombay Stock Exchange (BSE) as investors dumped the stock because of disappointing second quarter results.

The scrip, which had fallen to an intra-day low of Rs.290.30 from Thursday's closing figure of Rs.312.05, ended the day at Rs.292.15.

Bharti Airtel said its net profit, according to US accounting rules, increased 13.4 percent to Rs.2,321 crore (495 million) for the quarter ended Sep 30 from Rs.2,046 crore in the like quarter of previous fiscal.

This was, however, a decline of 8 percent over the previous quarter of current fiscal.

Revenues were up 9 percent to Rs.9,846 crore from Rs.9,020 crore reported a year earlier.

"The industry is seeing entry of many players and this is bound to have a bearing on the fortunes of existing companies," said Jagannadham Thunuguntla, equities head of brokerage and capital markets consultancy SMC Capital.

"In the short term, the stock could see some more pressure, though it is coming within range of a good buy, at least for the long term investor," Thunuguntla added.

The Bharti scrip has lost as much as 30.2 percent over October and at current levels is the lowest in seven months.
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