Airtel Q4FY19 Results: Highlights - Key things to know from telco's performance

Bharti Airtel made a come back by narrowing its net loss on standalone basis. Meanwhile, in Q4FY19, consolidated PAT jumped by 29.31% to Rs 107.2 crore in Q4FY19 versus Rs 82.9 crore in Q4FY18. Consolidated revenue came in at Rs 20,602.2 crore in Q4FY19, up by 6.22%. On geographical basis, Airtel revenue from mobile services in India, was at Rs 10,632.3 crore up by 2.69%. Meanwhile, mobile business in Africa saw revenue up by 16.48% on yearly basis to Rs 5,511.5 crore.

Here's a key things to note from the result:

In Q4FY19, Airtel Networks Kenya Ltd. (a subsidiary of the Group) has signed an agreement with Telkom Kenya Limited, to merge its operations. Since the agreement is subject to requisite regulatory approvals and customary closing conditions, no accounting has been done during the quarter.

Exceptional items during the quarter comprises of (i) charge of Rs. 1,455 Mn towards operating costs on network re-farming and up-gradation program and (ii) credit of Rs. 21 ,676 Mn pertaining to re-assessment of levies, based on a recent pronouncement related to the manner of determination of such levies. Net tax charge on the above is Rs. 7,225 Mn; included in tax expense. The net impact for non-controlling interests on the above exceptional items is credit of Rs. 41 Mn.

Airtel has launched a rights issue of approximately 1,134 Mn fully paid up equity shares (face value Rs. 5 each) at a price of Rs. 220/- per share aggregating to Rs. 249,390 Mn. The right issue will close on May 17, 2019. The rights entitlement is determined as 19 equity shares for every 67 equity shares held.

Airtel has finalised the transition method for the adoption of Ind AS 115 'Revenue from Contracts with Customers' as the fully retrospective method applied retrospectively and hence, the comparative information have been restated. Accordingly, certain commission charges hitherto included in Sales and marketing expenses in respect of Africa mobile operations have been netted from Revenue for all periods reported. The consequent reclassification of Rs. 2,398 Mn and Rs 10,491 Mn for the quarter and year ended March 31, 2018 respectively has no effect on the reported results, Other equity and Earnings per shares.

Airtel in its financial audit report said, " Based on a petition filed by the Company, the Hon'ble High Court of Bombay, through its order dated January 28, 2013, has directed DoT to respond and not to take any coercive action until the next date of hearing. The company, based on independent legal opinions, till date has not given any effect to the above demand." On January 8, 2013, the Department of Telecommunications ('001') issued a demand on the Company and one of its subsidiaries for Rs. 52,013 Mn towards levy of one time spectrum charge, which was further revised on June 27, 2018 to Rs. 84,140 Mn.

For fiscal year FY19, Airtel's consolidated revenue came in at Rs 80,780.2 crore down by 2.24% from Rs 82,638.8 crore in FY18. While overall PAT declined by a massive 62.73% to Rs 409.5 crore versus Rs 1,099 crore in FY18.