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Airtel Money India net profit at 4.47 Cr for FY15; boosted by other income

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Service Centre in Jaipur--airtel-service-centre-in-jaipur

Airtel M Commerce Services Limited (AMSL), the holding company which operates Airtel Money in India, posted a net profit of Rs 4.47 crore for the year ended March, 2015. The company had posted a loss of Rs 106.26 crore in the fiscal year ended March, 2014.

Income from operations stood at 39.44 crore for the period, a growth of 4.71% from Rs 37.66 crore from the year ended March, 2014. However, the net profit was boosted by other income at the company which stood at Rs 81.93 crore. Other income at the end of March, 2014 stood at Rs 4.95 crore.

It’s worth noting that a major component of other income included a support service charge of Rs 61.63 crore. The company adds that the support service charge is a recovery for providing services to a holding company. We’ve written to Airtel for a clarification on what services it provided and will update once we hear back from them.

Expenses

– A major component of of the company’s expenses were dealer commissions which stood at Rs 37.31 crore. The company dealer commissions for the year ended March, 2014 was Rs 34.16 crore, a growth of 9.22%.

– Other significant expenses includes IT and call centre outsourcing (Rs 31.74 crore) and advertising and marketing (Rs 26.21 crore).

Airtel Money developments in India

Airtel Money hasn’t disclosed operational data for India for since March 2014. However, there have been some significant developments in the interim:

1. Airtel Money received a Payments Banks license from the Reserve Bank of India. Kotak Mahindra Bank will pick up 19.90% stake in Airtel M Commerce Services Limited.

2. YTS Solutions acquisition: In the preceding quarter, Bharti Airtel acquired the Mumbai-based mobile payment startup YTS for an undisclosed amount. Post acquisition, Airtel Mcommerce Services Limited (AMSL) will integrate the payments and remittance businesses of YTS Solutions. Additionally, the company has appointed Manish Khera, MD & CFO at YTS, as the new CEO of AMSL.

3. Tie up with Uber: Online cab aggregator Uber and Airtel entered into a strategic partnership to allow Mumbai’s Uber riders to pay with Airtel Money. The Airtel Money payment option will be available other than the pre-existing methods of credit/debit card, Paytm wallet and cash.

Download: Financial results

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