Why investors are taking a $4.8 bn blow to Bharti Airtel in their stride

One man’s poison is another man’s meat Ever since the Supreme Court pronounced its verdict on licence and spectrum fee dues by telcos to the government, shares of Vodafone Idea Ltd have fallen by 48% to a mere ₹2.95 per share. Meanwhile, shares of Bharti Airtel Ltd have been resolute at the ₹360 levels.

It’s not that Airtel has not been affected. On Thursday, while announcing its September quarter results, the company said it has provided for a liability of ₹34,260 crore ($4.8 billion), in keeping with the apex court’s directions on calculating its dues. Airtel had cash, cash equivalents and investments worth ₹18,473 crore at the end of September 2019. Its net debt stood at ₹1.18 trillion. Undoubtedly, its leverage ratio will spike as a result of the order.