To invest $2 b in the current fiscal for expansion including launch of 3G services
Subscriber base crosses two-crore markRevenue collection up 46 p.c.
NEW DELHI: Bharti Airtel Limited (formerly Bharti Tele-Ventures Ltd.) on Friday announced an impressive 51 per cent increase in its net profit in the year ended March 31, 2006, to touch Rs. 2,258 crore as compared to the corresponding period last year. Its total revenue collection stood at Rs. 11,663 crore, a 46 per cent growth over the previous fiscal.
The company saw the highest-ever net addition of 90.84-lakh subscribers in a year, a 77 per cent increase as compared to the last fiscal, with its overall subscriber base crossing the two-crore mark.
In the fourth quarter in 2005-06, the company added 34-lakh subscribers, also the highest-ever in any single quarter.
In the fourth quarter, total revenue grew 47 per cent (year-on-year basis) to Rs. 3,411 crore, while its net profit recorded an increase of 49 per cent at Rs. 682 crore.
Announcing the results, Bharti Airtel Chairman and Managing Director, Sunil Mittal, said the company would invest around $2 billion in the current fiscal for expansion which includes launch of the Third Generation (3G) services offering high speed data, voice and video on mobile phones, provided the Union Government cleared the new spectrum policy. However, the company had no plans to give dividend to its shareholders as it wanted to invest its profits into the operations.
Reacting to the recent controversy on allowing foreign nationals to hold key positions in the telecom sector, Mr. Mittal said there should not be different rules for companies with or without foreign direct investment (FDI).
"There should be no differential treatment between two companies. Foreigners should be allowed to take key positions as we are strong enough to take care of security issues," he asserted.