Bharti Airtel – India’s largest mobile operator – reported weaker than expected profit for its latest quarter and its share price fell in response to comments that it is feeling the effects of increasing competition in the world’s second-largest mobile market. Bharti reported net profit for its fiscal second-quarter (ended 30 September) of INR23.21 billion (US$495 million), up 31 percent compared to a year ago, but below analysts’ forecasts of around INR24 billion, according to Associated Press. Revenues rose 9 percent to INR98.46 billion. The firm said it had 113.4 million customers by the end of September, an increase in the total customer base of 42 percent over the corresponding period last year. It added 8.2 million new customers in the quarter and estimated its share of India’s mobile market at 23.5 percent. “We continue to maintain our market leadership position in the mobile segment despite ever-increasing competitive intensity,” said Bharti chairman Sunil Bharti Mittal in a statement.

However, Associated Press reports that a separate statement by Akhil Gupta, deputy chief executive officer of parent company Bharti Enterprises, saw Bharti shares slump to a year low at one point in trading today. “With intense competition and irrational pricing in some pockets in the short term, we could see some impact [on earnings],” said Gupta. Bharti’s shares dropped 6.89 percent or INR21.5 rupees to a year low of INR290.55 before recovering slightly to INR295.70, down 5.24 percent.