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Last Updated : Oct 22, 2016 12:15 PM IST | Source: CNBC-TV18

Bharti Infra Q2 profit seen down 9%, tenancy growth may be muted

Telecom tower infrastructures provider Bharti Infratel is expected to report a 8.6 percent degrowth in second quarter profit at Rs 691 crore on sequential basis despite operational performance, according to average of estimates of analysts polled by CNBC-TV18.

 
 
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Telecom tower infrastructures provider Bharti Infratel is expected to report a 8.6 percent degrowth in second quarter profit at Rs 691 crore on sequential basis despite operational performance, according to average of estimates of analysts polled by CNBC-TV18.


Revenue is seen rising 2.2 percent to Rs 3,282 crore in the quarter ended September 2016 compared with Rs 3,210.6 crore in previous quarter.


Analysts expect tenancy growth to remain muted for September quarter as well. In Q1, it was also weak due to exits by Videocon and Reliance Communications.

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This can be likely on postponement of some network rollout by incumbents, who await clarity post the spectrum auction, according to analysts.


Analysts expect tenancy growth to accelerate in 2HFY17, benefitting from incumbents' 4G expansion following their recent spectrum acquisitions.


Bharti Infratel has also frozen the rentals from Q1FY17. Hence, the YoY growth in rentals may be lower going ahead.


Goldman Sachs sees rent/tower growth slowing to 4.9 percent YoY in Q2 (from 6.2 percent YoY in Q1 due to rental freeze/rationalisation).

EBITDA (earnings before interest, tax, depreciation and amortisation) is likely to increase 2.75 percent to Rs 1,447 crore and margin may expand 24 basis points to 44.1 percent on sequential basis.

First Published on Oct 22, 2016 12:15 pm
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