Singtel stated last week that it would sell a 3.3% share in India's Bharti Airtel Ltd. (NSE-1.18%) to Bharti Telecom Ltd. for an overall consideration of around USD 1.61 billion, one day after disclosing its first quarter 2022 financial results.
The largest telecom company in Southeast Asia based on market capitalization stated that the sale's revenues may be used to pay down debt, fund 5G capital expenditures, and support expansion efforts.
This appears odd given that Airtel's financial success was one of the two key factors contributing to a profit increase of over 41% for the fiscal quarter that ended in June. The pre-tax amount that Airtel NSE-1.18% contributed to Singtel's profits increased by 145.6%, from SGD 64 million (USD 46 million) to SGD 156 million (USD 112 million). Only this regional associate had an increase in earnings from the same time last year.
However, a close examination of the notes in Singtel's Q1 business report submitted to the Singapore Exchange reveals that Airtel's success is the result of unusual benefits from one-time items. This includes the recognition of a deferred tax credit in Africa and a fair value gain on the revaluation of its foreign currency convertible bonds.
For feedback and suggestions, write to us at editorial@iifl.com.
Related Tags
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Securities Support WhatsApp Number
+91 9892691696
www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.
Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.