Airtel lost Rs 23,045 crore in the September quarter from provision of Rs 28,450 crore for AGR.

Airtel lost Rs 23,045 crore in the September quarter from provision of Rs 28,450 crore for AGR.

The impact of the difficulties of the telecom industry is clearly visible in the shares of Bharti Airtel. Bharti Airtel has lost a total of Rs 23,045 crore for the quarter ended September 30. A major reason for this is AGR. The provision of Rs 28,450 crore for AGR has resulted in such a huge loss to the company. The company's net loss (before exceptional items) in the second quarter of the current financial year was Rs 1123 crore.

During this period, the company's revenue grew by 4.90 percent to Rs 21,131 crore. The company has got some relief due to reduction in corporate tax. This resulted in a tax gain of Rs 8932 crore in the September quarter. Whereas in the same quarter last year it was only Rs 2632.60 crore.

After the results were released, Bharti Airtel issued a statement saying, "On 24 October 2019, the Supreme Court has given its verdict on the adjusted gross revenue (AGR). This case has been going on for a long time between the telecom industry and the Department of Telecommunications. The decision of the court will affect the financial condition of the companies. “The Supreme Court in its ruling has asked the telecom companies to pay the AGR amount within three months.

The company has further said that it fully hopes that the government will provide 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. It has Rs 6614 crore principal and Rs 12,219 crore interest. Along with this, there is a penalty of Rs 3760 crore and interest of Rs 6307 crore.