IDEA

Updates

** India's Vodafone Idea VODA.NS drops 8.2% to 6.80 rupees; on course to snap three-session gaining streak

** India's Supreme Court dismisses VODA's plea seeking court's help for government rejecting to waive its telecom dues

** VODA dropped 5% in early trade after it asked Supreme Court to intervene "in public interest" after government rejected request to waive over $5 bln dues

** CEO Akshaya Moondra says, "no support will lead to a point of no return" and Vodafone "will not be able to operate beyond FY26"

** Analysts on average rate VODA "hold"; median PT 7.85 rupees, as per LSEG data

** YTD, stock down ~14% vs ~15% gain in rival Bharti Airtel BRTI.NS

(Reporting by Kashish Tandon and Vivek Kumar M)

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May 2 (Reuters) - Vodafone Idea Ltd VODA.NS:

• VODAFONE IDEA LTD - AMENDS SHAREHOLDERS' AGREEMENT QUALIFYING THRESHOLD TO 10%

• VODAFONE IDEA - STAKE OF ADITYA BIRLA GROUP, VODAFONE GROUP STANDS AT 9.50%, 16.07% RESPECTIVELY

Source text: ID:nBSE9cq13y

Further company coverage: VODA.NS

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April 8 (Reuters) - Vodafone Idea Ltd VODA.NS:

• ALLOTS 36.95 BILLION SHARES TO GOVERNMENT OF INDIA

• GOVERNMENT OF INDIA SHAREHOLDING IN VODAFONE IDEA AT 48.99%

Source text: ID:nBSE7lLKVh

Further company coverage: VODA.NS

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** Telecom tower operator Indus Towers INUS.NS jumps 6.7% to 356.70 rupees; set for biggest intraday pct gain since June 2024

** Brokerages say INUS, owed money by Vodafone Idea VODA.NS, seen benefiting from Indian government's move to convert part of debt-ridden telco's spectrum dues into equity

** VODA says government's stake in co will rise to 48.99% from 22.6% after outstanding spectrum auction dues are converted into equity

** Citi sees INUS climbing to 470 rupees in next three months

** Jefferies says government move will allay concerns of potential delays in payments to INUS

** Stock rated "hold" on avg, per data compiled by LSEG

** INUS gains 4.2% YTD

(Reporting by Nandan Mandayam in Bengaluru)

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March 30 (Reuters) - The Indian government will increase its stake in Vodafone Idea VODA.NS to approximately 48.99% by converting 369.5 billion rupees ($4.3 billion) in outstanding spectrum auction dues into equity, a regulatory filing from the company showed on Sunday.

The Ministry of Communications has directed Vodafone Idea to issue 36.95 billion shares at 10 rupees each, the filing said, boosting the government's stake from 22.6%. The government is already the largest shareholder in the telecom company, according to LSEG data.

Vodafone Idea - formed by a merger between the Indian arm of the UK's Vodafone Group VOD.L and Aditya Birla Group's Idea Cellular in 2018 - said its initial investors will continue to have operational control despite the increased government stake.

The move aligns with the government's September 2021 relief package announced for the telecom sector.

In December, the company announced a plan to raise up to 19.80 billion rupees through the issue of preferential shares.

As of September 2024, the debt-saddled firm's total debt pile stood at 2.16 trillion rupees, including deferred spectrum payment obligations it owes to the government.

The company in February reported a smaller-than-expected third-quarter loss.

($1 = 85.5340 Indian rupees)

(Reporting by Pretish M J and Nilutpal Timsina in Bengaluru; Editing by David Holmes)

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Adds context, details from paragraph 2 onwards

March 26 (Reuters) - India's Bharti Airtel BRTI.NS and its unit Bharti Hexacom BHAX.NS have prepaid 59.85 billion rupees ($698.33 million) to the government, fully clearing "high-cost" liabilities from the 2024 spectrum auctions, the telecom company said on Wednesday.

Airtel, the country's no.2 telecom firm by user base, has been prepaying high-cost spectrum dues that it and other Indian telecom operators owe the government, following years of high-stakes auctions and aggressive bidding for airwaves.

The latest payment has trimmed Airtel's debt pile related to spectrum to 520 billion rupees, bringing down the cost of debt to 7.22%, the company said.

Airtel's early payments now total 666.65 billion rupees ($7.78 billion), it said, adding that it has settled liabilities with interest rates of 10%, 9.75%, and 9.3% about seven years before their average maturity dates.

The latest payment was made for liabilities that carried an interest rate of 8.65%, Airtel said, without specifying when the debt was previously due.

Peer Vodafone Idea VODA.NS owes about 1.42 trillion rupees in spectrum dues as of September 2024.

Another Airtel subsidiary, Network i2i, also redeemed $1 billion in perpetual debt securities - a debt instrument with no fixed maturity date - reducing the company’s outstanding perpetual notes to $479 million, the telecom company said.

Airtel's shares closed 0.5% higher on Wednesday after the announcement.

($1 = 85.7050 Indian rupees)

(Reporting by Aleef Jahan in Bengaluru; Editing by Janane Venkatraman)

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March 25 (Reuters) - Vodafone Idea Ltd VODA.NS:

• VODAFONE IDEA - SIGNS MOU WITH WEST BENGAL GOVERNMENT. TO OFFER DIGITAL ADVISORY TO MSMES

Further company coverage: VODA.NS

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Adds details and background from paragraph 2 onwards

March 19 (Reuters) - Vodafone Idea VODA.NS is in exploratory talks with various satellite communication providers, including Starlink, the company said on Wednesday, a week after the Indian telecom firm's rivals signed deals with Elon Musk's company.

The mobile operator made the disclosure after Indian stock exchanges sought a clarification on its stock move and a report by local financial news website Moneycontrol earlier in the day.

Shares of Vodafone Idea rose nearly 5% on Wednesday.

"Our strategy is to provide services -- whether fixed or mobile -- in uncovered areas, where satellite makes perfect sense," Vodafone Idea Chief Technology Officer Jagbir Singh told Moneycontrol, as per the report.

"The other (strategy) is to provide fixed wireless broadband in rural areas and smaller towns, where it is expensive to roll out such services."

Last week, Musk's SpaceX signed deals with Bharti Airtel BRTI.NS and Reliance Jio to bring Starlink's internet services to India.

As part of the deals, the Indian operators will stock Starlink's equipment in their retail stores, giving the US-based satellite communication firm a direct distribution point in thousands of such outlets across the country.

The deals will be conditional on Starlink obtaining government approval to begin operations in the country.

(Reporting by Manvi Pant in Bengaluru; Editing by Savio D'Souza and Leroy Leo)

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March 7 (Reuters) - Vodafone Idea Ltd VODA.NS:

• VODAFONE IDEA LTD - ORDER PASSED FOR PENALTY OF 107.9 MILLION RUPEES

• VODAFONE IDEA LTD - TO FILE APPEALS AGAINST PENALTY ORDER

Source text: ID:nBSEb7xZHy

Further company coverage: VODA.NS

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Feb 19 (Reuters) - Vodafone Idea Ltd VODA.NS:

• GETS TAX DEPARTMENT ORDER CONFIRMING PENALTY OF 9.7 MILLION RUPEES

Source text: ID:nBSE3dz5Pq

Further company coverage: VODA.NS

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Feb 14 (Reuters) - India's top court has rejected a request by telecom companies to recalculate the dues they owe the government, the Mint business daily reported on Friday.

The news sent shares of debt-saddled Vodafone Idea VODA.NS down 4.6%, while those of larger peer Bharti Airtel BRTI.NS declined 0.2%.

(Reporting by Nandan Mandayam in Bengaluru)

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Feb 11 (Reuters) - India's Vodafone Idea VODA.NS reported a smaller-than-expected third-quarter loss on Tuesday, as the telecom operator's per-user revenue continued to be boosted from July's tariff hikes.

Vodafone Idea — 22.6% owned by the Indian government — was formed by a merger between the Indian arm of the UK's Vodafone Group VOD.L and Aditya Birla Group's Idea Cellular in 2018. It has posted a loss in every quarter as it continues to lose market share.

The company's consolidated loss after tax narrowed to 66.09 billion rupees ($762.20 million) in the quarter ended December 31, from 69.86 billion rupees a year earlier.

The loss was smaller than analysts' average estimate of 69.78 billion rupees, according to data compiled by LSEG.

Vodafone Idea's average revenue per user (ARPU), a key performance metric for telecom firms, rose 4.2% from the previous quarter and 19.3% from a year earlier to 173 rupees, boosted by an increase in mobile plan rates.

However, the key metric lagged peer Reliance Industries RELI.NS-owned Jio's 203.30 rupees and Bharti Airtel's BRTI.NS 245 rupees.

All three mobile carriers' ARPUs have grown between 12% and 18.5% as of December-end after a tariff hike in July marked an industry-wide shift in strategy from competing for market share to increasing profitability.

Airtel and Jio have reported upbeat quarterly profits.

Vodafone India's user base declined 2.5% sequentially and 7.2% year-on-year to 199.8 million as of December 31, lagging behind Jio's 482.1 million and Airtel's 414 million.

Its revenue from operations rose about 4.2% to 111.17 billion rupees, missing analysts' estimates of 112.54 billion rupees, while its total expenses shrunk 2.5% led by a dip in network expenses.

Vodafone Idea's shares closed 3.2% lower ahead of results.

($1 = 86.7090 Indian rupees)

(Reporting by Aleef Jahan in Bengaluru)

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Feb 4 (Reuters) - Vodafone Idea Ltd VODA.NS:

• VODAFONE IDEA LTD - GETS TAX ORDER CONFIRMING PENALTY OF 24.9 MILLION RUPEES

Source text: ID:nBSE3b8M8v

Further company coverage: VODA.NS

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Jan 31 (Reuters) - Vodafone Idea Ltd VODA.NS:

• GETS TAX ORDER CONFIRMING PENALTY OF 7.9 MILLION RUPEES

Source text: ID:nBSE6tZbQj

Further company coverage: VODA.NS

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Jan 30 (Reuters) - Vodafone Idea Ltd VODA.NS:

• GETS TAX ORDER CONFIRMING PENALTY OF 55.2 MILLION RUPEES

Source text: ID:nBSE8vV53H

Further company coverage: VODA.NS

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Jan 24 (Reuters) - Vodafone Idea Ltd VODA.NS:

• GETS GST ORDER WITH PENALTY OF 7.1 MILLION RUPEES

Source text: ID:nBSE1SwT05

Further company coverage: VODA.NS

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By Divya Chowdhury

DAVOS, Switzerland, Jan 23 (Reuters) - Swedish telecom gear maker Ericsson expects the United States to continue to be at the forefront of technology development under President Donald Trump, which the company is ready to take advantage of, its chief technology officer said.

The industry is now in full-execution phase of OpenRAN, CTO Erik Ekudden told the Reuters Global Markets Forum, adding: "Of course we intend to continue to lead and drive that industry development."

OpenRAN allows operators to mix and match suppliers in their radio networks. Ericsson ERICb.ST, Huawei and Nokia NOKIA.HE, dominate the global telecoms equipment market with their proprietary technologies.

The focus is now on building artificial intelligence (AI)data centers and also leveraging that AI to optimize the performance of 5G networks, Ekudden said.

That is why every country needs to have innovation strategy to build on 5G and AI, he added.

"I expect U.S. to continue to push ahead in that, and if anything, the opportunities just seem fantastic right now to put in an extra gear and then make sure that we are part of that," Ekudden said.

He also said Ericsson's local-for-local manufacturing model gives it an advantage, helping it rely less on global trade and supply chains, as threats of a trade war loom under the new U.S. administration.

However, Ekudden said it was still early days to speculate on tariffs.

(Join GMF, a chat room hosted on LSEG Messenger, for live interviews: https://lseg.group/4ajdDTy)

(Reporting by Divya Chowdhury in Davos and Ankika Biswas in Bengaluru; Editing by Nick Zieminski)

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Repeats Jan 20 story with no changes to text

By Aditya Kalra and Aditi Shah

NEW DELHI, Jan 20 (Reuters) - India's decision to allocate satellite spectrum, rather than auction it, will give consumers more choice, the telecoms minister said on Monday, playing down concern by Mukesh Ambani's Reliance Jio that it could lose out to Elon Musk's Starlink.

Starlink has long wanted to launch in India and has in recent months clashed with billionaire Ambani's company over how the country should grant spectrum for satellite services.

Reliance had urged an auction but the Indian government sided with Musk who wanted it to be allocated administratively, in line with global trends. Analysts say an auction, requiring much more investment, would likely deter foreign rivals.

Ambani said he wanted a level playing field and has been worried that his telecom company, which spent $19 billion in airwave auctions, now risks losing broadband customers to Starlink and potentially even data and voice clients later as technology advances.

"My job as telecoms minister is to make sure that you have as many choices as possible," Jyotiraditya Scindia told Reuters during an interview at his ministry's office in New Delhi.

Asked if there was merit in Reliance's concerns, he said, without naming any company: "Technology is never constant", adding that companies need to keep evolving.

Scindia noted that current satellite technology for communications requires devices to have the sky in their sight, and smartphones cannot use that technology for indoor services that are provided by terrestrial networks.

"The minute you come into this building, you're done," he said.

India is one of the world's biggest telecom markets with 942 million users and stiff competition among Reliance and rivals Bharti Airtel BRTI.NS and Vodafone Idea VODA.NS. Data prices are among the cheapest in the world and internet connectivity has risen rapidly.

Deloitte predicts India’s satellite broadband service market will be worth $1.9 billion by 2030, making it lucrative for players like Starlink, Amazon and Ambani.

Scindia said Starlink and Amazon Kuiper's applications for a licence to launch satellite broadband services in the country were still under review.

VODAFONE IDEA

Musk has a reputation for disrupting markets. In Kenya, he priced Starlink at $10 per month, versus $120 in the United States, prompting a complaint by Kenya's Safaricom SCOM.NR last year.

A former aviation minister, Scindia is also overseeing many more telecom initiatives for Prime Minister Narendra Modi.

India's government owns a stake in Vodafone Idea, and the company in November disclosed it still had around $24 billion in dues owed to the government.

Scindia repeatedly declined to answer in the interview if there were any plans for relief on the outstanding dues.

The Indian government is, however, working towards reviving state-run telecom player, Bharat Sanchar Nigam Limited (BSNL), which lost market share amid fierce competition over the years, he said.

BSNL has 99 million users but is being supported with expanded offerings of 4G services.

(Reporting by Aditya Kalra and Aditi Shah; Additional reporting by Munsif Vengattil; Editing by Emelia Sithole-Matarise)

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Jan 20 (Reuters) - Vodafone Idea Ltd VODA.NS:

• VODAFONE IDEA - CLARIFICATION ON NEWS ARTICLE GOVERNMENT WEIGHS OVER 1 TRLN RUPEES AGR DUES WAIVER

• VODAFONE IDEA - DID NOT GET ANY COMMUNICATION FROM GOVERNMENT

Source text: ID:nNSE8gcWhx

Further company coverage: VODA.NS

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Jan 14 (Reuters) - Vodafone Idea Ltd VODA.NS:

• OMEGA TELECOM ACQUIRES 1.08 BILLION SHARES OF CO VIA PREFERENTIAL ALLOTMENT

Source text: ID:nBSE7T0hcK

Further company coverage: VODA.NS

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Jan 6 (Reuters) - Vodafone Idea Ltd VODA.NS:

• ENTERED INTO A SHARE PURCHASE AGREEMENT WITH IBUS NETWORK AND INFRASTRUCTURE

• DEAL FOR TRANSFER OF CO’S SHAREHOLDING IN FIREFLY NETWORKS FOR 45 MILLION RUPEES

Further company coverage: VODA.NS

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** Shares of telecom operator Bharti Airtel BRTI.NS jumps 53.6% in 2024, set for best year since 2019

** Peer Vodafone Idea VODA.NS sheds ~51% in 2024

** BRTI also on track to sixth straight year of gains

** Analysts avg rating on BRTI is "buy" vs "hold" for Vodafone Idea -LSEG data

** Their median PT on BRTI is 1850 rupees -LSEG data

** BRTI shares flat at 1585 rupees on the day, while VODA is up 1%

(Reporting by Nandan Mandayam in Bengaluru)

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** Shares of Vodafone Idea VODA.NS rise 2.7% to 7.7 rupees

** Co says the government telecoms department waived the need for a bank guarantee for spectrum auctions

** Waiver for auctions of 2012, 2014, 2015, 2016 and 2021

** 19 analysts covering the stock on avg have a "hold" rating; median PT is 7.50 rupees - LSEG data

** Stock down 51% YTD

(Reporting by Ashna Teresa Britto in Bengaluru)

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Dec 19 (Reuters) - Vodafone Idea Ltd VODA.NS:

• VODAFONE IDEA - RECEIVES ORDER UNDER CENTRAL GST ACT

• VODAFONE IDEA LTD - ORDER CONFIRMS PENALTY OF 86.7 MILLION RUPEES PLUS DEMAND AND INTEREST

• VODAFONE IDEA LTD - TO TAKE LEGAL ACTION AGAINST ORDER

Source text: ID:nBSE1HXSRx

Further company coverage: VODA.NS

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Dec 10 (Reuters) - Tejas Networks Ltd TEJS.NS:

• TEJAS NETWORKS LTD - ENTERS THREE-YEAR CONTRACT WITH VODAFONE IDEA

• TEJAS NETWORKS LTD - TO SUPPLY PRODUCTS TO BOOST VODAFONE IDEA'S NETWORK

Source text: ID:nBSE5JFhL0

Further company coverage: TEJS.NS

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Adds details on fundraise in paragraphs 2-4, background on company's debt from paragraph 5 onwards

Dec 9 (Reuters) - Vodafone Idea VODA.NS will raise up to 19.80 billion rupees ($233.8 million) through the issue of preferential shares, the Indian telecom company said on Monday.

Vodafone Idea said it will issue shares to Vodafone Group entities Omega Telecom Holdings and Usha Martin Telematics worth up to 12.8 billion rupees and 7 billion rupees, respectively.

The fundraise will likely help the debt-saddled firm pay some of its dues to network infrastructure provider Indus Towers INUS.NS, to which it owes about 50-60 billion rupees, according to Ambit Capital's Vivekanand Subbaraman.

Vodafone Idea did not specify details about its plans to use the funds.

As of September-end, its total debt pile stood at 2.16 trillion rupees, including deferred spectrum payment obligations it owes to the government.

The company, formed by a merger between the Indian arm of the UK's Vodafone Group VOD.L and Aditya Birla Group's Idea Cellular in 2018, has so far raised about 240 billion rupees in the year.

Parent Vodafone Group announced last week that it was selling its remaining 3% stake in Indus Towers. It will use proceeds to repay its borrowings and infuse fresh capital into Vodafone Idea to help it pay its past dues to Indus, it said.

($1 = 84.7000 Indian rupees)

(Reporting by Aleef Jahan and Nishit Navin in Bengaluru; Editing by Janane Venkatraman)

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** Shares of Vodafone Idea VODA.NS fall 3% to 8.2 rupees

** VODA's UK-based stakeholder Vodafone Group VOD.L said it will sell remaining 3% stake in Indian telecom infrastructure developer Indus Towers INUS.NS

** Proceeds from share sale to be used to repay VODA's outstanding borrowings to lenders

** Separately, VODA said it will consider fundraise worth up to 20 bln rupees ($236.1 mln) to one or more entities of Vodafone Group in its meeting on Dec. 9

** Proceeds from fundraise to be used to pay VODA's outstanding dues to INUS

** Shares of Indus Towers rise as much as 5% to 375 rupees, highest since Oct. 23

** 79.2 mln shares of INUS change hands via block deals in morning session, at an avg price of 353.7 rupees per share, as per NSE data

($1 = 84.7230 Indian rupees)

(Reporting by Ashna Teresa Britto in Bengaluru)

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Corrects typo in headline

** Vodafone Idea VODA.NS surges nearly 18% to 8.21 rupees

** Stock set for biggest one-day jump since Dec 29, 2023

** India govt approves waiving bank guarantees for telecom operators for spectrum bought before 2022, per local media reports

** Vodafone owes over 247 bln rupees (nearly $3 bln) in bank guarantees, easily the highest among the three major telcos

** Bharti Airtel BRTI.NS, No.2 telco, is off 0.2% on the day

** VODA's surge pulls stock to MTD gains of just over 1% and cuts YTD losses to ~49%

** Meanwhile Airtel has jumped nearly 53% so far this year

($1 = 84.2410 Indian rupees)

(Reporting by Anuran Sadhu in Bengaluru)

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Nov 13 (Reuters) - India's Vodafone Idea VODA.NS reported a bigger-than-expected second-quarter loss on Wednesday, weighed down by a shrinking user base.

The telecom operator narrowed its consolidated loss after tax to 71.76 billion rupees ($850.7 million) for the quarter ended Sept. 30, compared to a loss of 87.38 billion rupees a year ago, helped by an increase in tariffs.

However, analysts' on average estimated a loss of 64.57 billion rupees, according to data compiled by LSEG.

Vodafone Idea's user base fell 2.4% sequentially and 6.7% year-on-year to 205 million as of Sept. 30, smaller than Jio's 478.8 million and Airtel's 407 million.

The decline resulted from the subscriber base, including 4G users, switching to cheaper alternatives like state-owned BSNL following price hikes.

All three Indian mobile carriers—Jio, Airtel, and Vodafone Idea—increased their tariffs in June for the first time in over two years, marking a shift in their strategy from aggressive competition for market share towards increasing profitability.

The increase in tariffs helped boost Vodafone Idea's average revenue per user (ARPU), a key performance metric for telecom firms, by 7.8% sequentially and 17% year-on-year to 166 rupees during the quarter.

However, its ARPU lagged behind that of Reliance Industries RELI.NS-owned Jio's 195.1 rupees and Bharti Airtel BRTI.NS's 233 rupees for the same period.

Vodafone Idea, formed by a merger between the Indian arm of the UK's Vodafone Group VOD.L and Aditya Birla Group's Idea Cellular in 2018, has posted a loss every quarter as it loses ground to larger rivals Airtel and Jio.

Vodafone Idea's revenue from operations during the quarter rose about 2% to 109.3 billion rupees, but fell short of analysts' estimates of 112.65 billion rupees.

Airtel and Jio previously reported upbeat quarterly profits led by the price hikes.

($1 = 84.3560 Indian rupees)

(Reporting by Aleef Jahan and Nishit Navin in Bengaluru; Editing by Abinaya Vijayaraghavan)

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Oct 28 (Reuters) - Bharti Airtel BRTI.NS reported a smaller-than-expected second-quarter profit on Monday, as the telecom operator's expenses outweighed gains from its first tariff hike in over two years.

India's No.2 wireless carrier's consolidated net profit climbed 168% to 35.93 billion rupees ($427.49 million) in the July-September quarter, missing analysts' average estimate of 44.83 billion rupees, as per data compiled by LSEG.

($1 = 84.0490 Indian rupees)

(Reporting by Aleef Jahan in Bengaluru; Editing by Abinaya Vijayaraghavan)

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