The Tuesday’s market showed an increase in shares of Bharti Airtel, even after it had incurred a loss of 5,237 crores. However the revenue compared to last year, this year had increased more than 15% despite the pandemic.
About Airtel’s share price in the Tuesday trade:-
Airtel had reported a quarterly loss of 5,237 crores, despite that share prices surged at 10% unexpectedly in the Tuesday’s trade. The stock could be seen hitting a 52 week high as it had reported to have rallied an overall increase of 10% in the month of May, in the 13 trading sessions held. The share price is observed to have reached 598.80 at the time of writing.
The reason behind the loss Airtel had to incur, though Airtel’s share price surged:-
The losses that Airtel had to incur were mainly based on statutory dues, though the share price increased. The loss was borne while there were provisions made so that the statutory dues could be repaid. This time during the last Airtel had reported 107 crore profit and the company even stated, it is taking necessary measures during the period of covid-19. The company had stated that in comparison to the prior period, they have not done well on numbers this time during March 2020.
The reason being was the adoption by the mobile network of Ind AS 116 which had taken place from the period of April 1, 2019. This mainly relates to leased assets of Airtel as well as over their accounting. The AGR liability case, if cited, the company further stated an interest of 870.6 crore, another exceptional thing to know in the row.
The reason behind the surge in Share price:-
Some of the reasons that could be pointed out would be, Bharti Airtel had brought about various changes. These changes were in the form of up gradation in call plans by customers as well as in data. There was also a raise seen in the tariff prices by the network, leading to notable surge in revenue.
The period of quarter ended month, the average revenue per user stood at Rs.154 along with a 25 % rise in its business. It was also observed the company had increased the tariff prices but consumers accepted it also. Company had also reported for an addition of 4 G subscribers to about 12.5 Million.