Airtel Losses of 23000 Crores, still got Boost in Market, Know the Reason

The country's leading telecom company Airtel has suffered a big loss in the quarterly results, but the stock market has seen tremendous growth.
Airtel Losses of 23000 Crores, still got Boost in Market, Know the Reason

Telecom company Bharti Airtel has incurred a huge loss of Rs 23,045 crore in the July-September quarter of the current financial year. After this quarterly result released on Thursday, there were speculations that Airtel's stock could be recorded on Friday. But in contrast, in the BSE index on the last trading day of the week, Airtel's stock rose more than 7 percent. During this time the share price of the company reached Rs 390. In such a situation, the question is why despite the loss, the company's stock has seen such a big boom. Let's understand this matter…

What is the reason for the rise in Airtel?
Actually, there are reports in the media that the Modi government is planning to give relief package to telecom companies to reduce financial pressure. According to reports, the government had constituted a committee of secretaries under the chairmanship of the cabinet secretary. This committee has prepared a complete draft of the relief package. Airtel has benefited from this news and on Friday, the effect of losses did not show on the stock price. Apart from this, due to the increase in Airtel's income, investor confidence is also intact. Statistics show that in the second quarter, Airtel's revenue has increased by 4.7 percent to Rs 21,199 crore.

Loss of 23000 Crores

Airtel has incurred a huge loss of Rs 23,045 crore in the July-September 2019 quarter. At the same time, the company had a profit of Rs 119 crore in the second quarter of last year. Airtel says it has suffered a sharp setback this quarter due to adjusted grass revenue (AGR). Explain that last month, the Supreme Court accepted the definition of AGR as decided by the government.

Under this, companies' income from business other than telecom services has also been considered as a share of their adjusted gross income. However, Airtel hopes that the government will give relief in this matter. But if there is no relief from the government, then Bharti Airtel will have to pay a total of Rs 28,450 crore for the quarter. Of this, Rs 6614 crore is principal and Rs 12,219 crore is interest.

Vodafone-Idea also Returned

Vodafone Idea stock also recorded a sharp rise after the biggest drop in the initial trading on Friday. Later in the afternoon, Vodafone Idea shares rose 16 per cent to Rs 3.50. Let us know that the results of the second quarter of Vodafone-Idea have been released. In these results, Vodafone-Idea has suffered the biggest loss of Rs 50,921 crore. It is considered the biggest quarterly loss in corporate history. Earlier, Tata Motors had shown a quarterly loss of Rs 26,961 crore in the October-December 2018 quarter. This was the largest quarterly loss of any Indian company till that time.

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