Telecom giant Bharti Airtel has deferred the release of its Sep Quarter results till 14 Nov 2019.
It is seeking for support from Govt on his Rs. 42 K Cr Statutory dues due to the Supreme Court judgement.
The results were scheduled to be announced on Tuesday but now it is deferred till November 14.
Airtel is approaching the department of telecommunications (DoT) to seek clarity on the total amounts involved and request for their support to deal with this adverse outcome.
Bharti Airtel, Vodafone Idea and other telecom operators may have to pay the government Rs 1.33 lakh crore following the Supreme Court order last week that shocks the telecom industry that is already facing huge debts and reducing margins due to intense competition after R Jio entry.
“The management of the company recommended to the board of directors that the agenda item related to the approval of audited financial results for the second quarter (Q2) and half year ended September 30, 2019, which was to be a part of the board meeting today (Tuesday) be deferred till November 14, 2019 on account of the fact that more clarity is needed on the AGR matter arising out of recent judgement of Hon’ble Supreme Court,” Bharti Airtel said in the notice to the stock exchanges.
“The board of directors, in its meeting held today (Tuesday), has accepted the management’s recommendation and deferred the agenda item relating to the approval of the said financial results till Thursday, November 14, 2019. All other agenda items shall be taken up by the Board in the meeting to be resumed today in the ordinary course,” it added.
Initially around 20 years back the telecoms were paying government a fixed license fee. In 1999 the government has given the option to migrate Telecoms from fixed to revenue sharing fee with a principle of ‘Pay as you earn’ which was accepted by telecoms.
The ‘revenue sharing’ regime was so designed that the central government becomes a partner or sharer of ‘gross revenue of the company’. An annual license fee is payable as a percentage of the AGR. The license fee initially was 15% of the AGR and progressively reduced to 8% in 2013.
Now as the Dispute over AGR calculation is raised that whether it will include only revenue from telecom operations or also includes revenue from other sources like Asset Sale, Interest on FD, Foreign exchange Income, and Dividend etc.
Detail of Supreme Court order can be read here :