Bharti Airtel’s rapid growth story seems to be fading away as the company managed only 17% rise in revenues in the first quarter financial results announced today. Just a year back, the company witnessed growth rates of 44 % in revenues. Even sequentially, the earlier quarter saw growth rate of 37% in revenues.

For the quarter ended June 30, 2009, revenues generated were at Rs 9942 crore as compared to Rs 8483 crore a year ago. Net Profit was at Rs 2517 crore as compared to Rs 2025 crore a year ago at a growth rate of 24 %.

Performance on other important growth parameters are as shown:

The company’s total subscriber base at the end of the quarter was at 105.20 million with the company witnessing its highest quarterly increase in subscriber additions at 8.55 million. Subscriber base for mobile services were at 102.68 million at 48 growth YoY while the telemedia services grew by 18 %. The company thereby managed a cumulative growth rate of 47 %.

The company attributed the fall in revenues to some extent to the reduction termination charges.

In a briefing the company cautioned that the Indian mobile services market is indeed becoming challenging due to increasing competition and entry of new players. The company hopes to sustain growth in future from the rural segment. 60 % of its subscribers are from rural areas now.

The company aims to spend about $ 3.5 billion in network upgrades this fiscal. 

On MTN it only said that talks are in process.

The company’s shares slid by 1.9 % to Rs 807.55/- in BSE.