Bharti Airtel share price reverses initial decline

Shares of the country's largest telecom firm Bharti Airtel on Friday witnessed heavy volatility in morning trade on bourses after the company posted a 38.17 per cent fall in second quarter consolidated net profit to Rs 1,027 crore.

Shares of the company opened weak and dipped over 1.63 per cent to a low of Rs 386.15 on the Bombay Stock Exchange (BSE). However, the stock quickly regained the lost ground to witness a high of Rs 400.60 in early trade.

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At 10.39 am, shares of Bharti Airtel were trading at Rs 396.75 apiece, up 1.07 per cent, on BSE.

Similar movement was seen on the National Stock Exchange, where the scrip after opening low, fell 2.12 per cent to Rs 385.05. The scrip later recovered to an early high of Rs 400.50 and was trading at Rs 396.55 on NSE at 10.39 am.

Ashika Stock Brokers Research Head Paras Bothra said: "The results were in line with market expectations. The worst seems to be over for the telecom sector. From now onward, the market is expecting only positive surprises from this sector as well as Bharti Airtel."

The company saw a dip in its September quarter net profit due to higher interest outgo and costs related to the roll-out of its 3G network.

This is the seventh straight quarter in which Bharti Airtel has reported a consecutive decline in its net profit. In the corresponding quarter ended September 30 last year, the company had registered a consolidated net profit of Rs 1,661 crore.