Leading telecom operator Bharti Airtel on Wednesday said it has earmarked a capital expenditure of $3.1 billion (over Rs 14,000 crore) for India and other global operations in the current fiscal.
Bharti Airtel, which reported a 32 per cent fall in net profit for the quarter ended June 30, 2010, said the company will continue investing in Africa, where it recently acquired Zain Telecom's assets for $10.7 billion (about Rs 48,000 crore).
"We are sticking to our guidance of investing $800 million a year for over three years," Bharti Chief Executive for International Operations Manoj Kohli said.
In March, Bharti struck a deal for Kuwaiti firm Zain's African assets, excluding Sudan and Morocco. It closed the deal in June.
Bharti Airtel expects to complete integration of its African assets, acquired from Zain in June, by the end of 2010.
The company said its board has approved the acquisition of Telecom Seychelles for an enterprise value of $62 million (Rs 288 crore), taking the total number of countries in Africa where it operates to 16.
Bharti Airtel has 36.3 million subscribers in Africa. "We will invest $2 billion for India and South Asia operations, $800 million for our Africa operations and $350 million for passive infrastructure," Bharti Airtel Group Chief Financial Officer Manik Jhangiani said.
Capital expenditure during the quarter was restricted to Rs 1,836 crore due to delays in security clearance for equipment imports.
Besides, Africa, the company plans a capex of $2 billion for operations in India and South Asia. Apart from India and Africa, the company also operates in Bangladesh and Sri Lanka, where it has 183.4 million subscribers. The company will also make an additional investment of 350 million on passive infrastructure, he added.
The company, which had already paid Rs 15,609 crore (Rs 156.09 billion) to secure 3G and BWA spectrum, is looking at rolling out 3G services in the country by the end of the year.
Hit by foreign exchange losses and cut-throat competition in the domestic market, Bharti Airtel reported a 32 per cent decline in net profit to Rs 1,682 crore (Rs 16.82 billion) in the first quarter compared to the same period last year.
Shares of Bharti Airtel ended at Rs 323.50 on the Bombay Stock Exchange, down 0.25 per cent from the previous close.
