Airtel’s Q2 profit slips 37.5% YoY on one-time charge

Bengaluru: Telecom major Bharti Airtel reported a 37.5% year-on-year (YoY) drop in its consolidated net profit in the quarter ended September 2023, which was hit by the one-time charge it had to pay as interest on additional tax provision. Though its topline grew by 7.3% YoY, it too fell short of expectations, eroded by the 1.6% slip in its Africa revenue on account of the devaluation of the Nigerian Naira.

Airtel’s Q2 net profit plunged to Rs 1,340.7 crore, from Rs 2,145.2 crore reported in the same quarter last year. The profit decline is attributed to a one-time charge of Rs 1,570 crore the company paid as interest on an additional tax provision amount, after the Supreme Court recently released a new ruling on variable license fees (VLF), classifying it as capex and not revenue expenditure.