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Bharti Airtel’s Q1 net loss widens to Rs 15,933 cr on AGR provisioning

Bharti Airtel’s revenue jumped 15.4 per cent to Rs 23,938.7 crore from previous Rs 20,737.9 crore during the same quarter year ago.

Bharti Airtel’s Q1 net loss widens to Rs 15,933 cr on AGR provisioning

The company owes Rs 25,976 crore in balance AGR dues, after paying Rs 18,004 crore. (Photo: Getty)

Telecom giant Bharti Airtel on Wednesday reported a consolidated net loss of Rs 15,933 crore for the April-June quarter, mainly due to the expenses related to its adjusted gross revenue (AGR) dues. Airtel’s loss for the corresponding period last year (Q1 FY20) was Rs 2,866 crore.

During the June quarter, the company recorded an incremental provision of Rs 10,744.4 crore AGR dues it owes to the government. The company owes Rs 25,976 crore in balance AGR dues, after paying Rs 18,004 crore.

Bharti Airtel’s revenue jumped 15.4 per cent to Rs 23,938.7 crore from previous Rs 20,737.9 crore during the same quarter year ago.

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In a regulatory filing, the company said that the net exceptional charge of Rs 11,745.7 crore during the quarter ended June 30, 2020 comprises of a charge on account of incremental provision and interest on license fee and spectrum usage charges of Rs 10,744.4 crore and net charge pertaining to re-assessment of levies of Rs 1,001.3 crore.

“Net tax benefit due to the above exceptional items; net charge due to re-assessment of deferred tax assets and adoption of ‘Vivad Se Vishwas Scheme 2020’ above and deferred tax asset pertaining to one of the subsidiary recognised in this quarter, aggregating Rs 36,432 mn (Rs 3,643.2 crore) is included under tax expense (credit),” it said

“As a result, the overall net exceptional charge (after tax) is Rs 153,889 mn (Rs 15,388.9 crore). The net share allocated to non-controlling interests on the above exceptional items is Rs 1,080 mn (Rs 108 crore),” it added.

The consolidated net loss before exceptional items for the quarter stood at Rs 436 crore, the statement said, adding that consolidated net loss after exceptional items stands at Rs 15,933 crore.

On coronavirus pandemic, the company observed that delivering uninterrupted services and strong end-user experience through several rounds of lockdowns and un-locks over the last quarter has been its priority.

“We are operating in an unprecedented situation and telecom has become an essential service…The situation is evolving on a daily basis and we are monitoring it closely, district by district,” the statement said.

The results came after close of the market hours. Bharti Airtel shares ended at Rs 566.35 apiece on Wednesday on the BSE, 0.30 per cent higher than the previous close.

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