B&E: You’re celebrating 100 million subscribers. What’s the status quo?
SM: We’re currently in the 15th year of operation and although Airtel has managed to be profitable, we’re yet to be cash flow positive. We recently announced the maiden dividend of the company after 15 years. Our stakeholders were actually looking at waiting for another year for us to turn cash flow positive. However, due to the de-merger of our private company, we had the headroom this year and hence were able to announce a dividend. One has to remember that Airtel has invested Rs.700 billion in setting up hard infrastructure. Infrastructure alone takes Rs.200 billion per year. It should always be remembered that this is a tough industry and one needs to keep on investing. This way, profitability is always measured along with investments.
B&E: What then would be the future growth drivers for Airtel?
SM: Well, we’re hoping that 3G would be available soon, which will lead to better data services. Music-based services are already quite popular and we hope that their popularity will continue to increase in future.
SM: We’re currently in the 15th year of operation and although Airtel has managed to be profitable, we’re yet to be cash flow positive. We recently announced the maiden dividend of the company after 15 years. Our stakeholders were actually looking at waiting for another year for us to turn cash flow positive. However, due to the de-merger of our private company, we had the headroom this year and hence were able to announce a dividend. One has to remember that Airtel has invested Rs.700 billion in setting up hard infrastructure. Infrastructure alone takes Rs.200 billion per year. It should always be remembered that this is a tough industry and one needs to keep on investing. This way, profitability is always measured along with investments.
B&E: What then would be the future growth drivers for Airtel?
SM: Well, we’re hoping that 3G would be available soon, which will lead to better data services. Music-based services are already quite popular and we hope that their popularity will continue to increase in future.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
and Arindam Chaudhuri (Renowned Management Guru and Economist).
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