Bharti Airtel share price zooms to all-time high despite Rs 5,237-crore loss in Q4; here's why

Bharti Airtel share price hit an all-time high on Sensex and Nifty today despite the telco reporting a surprise loss of Rs 5,237 crore for the quarter ended March 2020. Share price of Bharti Airtel hit a record high of Rs 603 rising 12.05% compared to the previous close of Rs 538.15 on BSE.

The stock of Sunil Mittal-led telco closed  11.34% or Rs 61 higher at Rs 599.15 on Sensex. On Nifty too, Bharti Airtel stock was the top gainer ending the session 10.81% or Rs 58.15 higher at Rs 596.20.

Bharti Airtel share price climbed 12.16% to its record high of Rs 603.50 on Nifty compared to the previous close of Rs 538.05. The large cap stock opened with a gain of 3.87% at Rs 559 on BSE.

Bharti Airtel posts net loss of Rs 32,183 crore in FY20; revenue up 8%

Bharti Airtel stock stands higher than 5 day, 20 day, 50 day, 100 day and 200-day moving averages. Bharti Airtel share has risen 82.56% during last one year and gained 31.45% since the beginning of this year.

Airtel Africa's profit dips 4% to $408 million in FY20, revenue up 11%

Bharti Airtel reported a consolidated loss of Rs 5,237 crore for the January-March quarter of 2019-20 fiscal mainly on account of provisions for statutory dues.

The telecom firm took into account regulatory costs of Rs 7,004 crore related to the spectrum charges which resulted in a higher-than-expected loss. The company had posted a profit of Rs 107.2 crore in the same period a year ago.

Here's a look at why Bharti Airtel stock has risen today despite Rs 5,237 crore loss in Q4.

• Average revenue per user (ARPU) rose to the highest in three years. In Q4, ARPU stood at Rs 154 compared to Rs 135 in the previous quarter. On an year on year basis, ARPU grew 25%.
• The firm logged a 8.1 percent sequential rise in revenue growth to Rs 23,723 crore. This was Airtel's highest revenue growth in nearly 30 quarters. Revenue rose due to tariff hikes in December. For the first time since 2014, Airtel announced new plans with effect from December 3, 2019 which would cost up to 42% more compared to the price that Airtel pre-paid customers paid at present for plans in the "unlimited" category.
• Operating profit grew 10.1 percent to Rs 10,202 crore.
• Margins expanded 80 basis points to 43 percent.
• Bharti Airtel said it had seen an increase in data traffic during the COVID-19 pandemic, which prompted government to impose a strict lockdown since late March.
• The quarter saw more than 1 crore new 4G subscriber additions.

Share Market LIVE: Sensex rises 650 points, Nifty at 9,000; HDFC, Airtel, JSW Steel top gainers