Shares of India’s number one telecom services firm Bharti Airtel extended their losses on Thursday, shedding 6% to close at Rs 257 as investors are worried of margin pressures persisting in the foreseeable future. With today’s decline, the company’s market capitalization has fallen below Rs 1-lakh crore.
The company’s m-cap had last fallen below this mark in May 2010. In its conference call on Wednesday, post the disappointing first quarter numbers, the company admitted that it may take longer for its African operations to turn corner. Losses in its Africa division doubled to Rs 670 crore for the June quarter.
The company blamed hyper competition in the telecom market and adverse regulations as the key reasons for the decline in its quarterly earnings. It is unlikely that any of these factors will change for the better near term.