Indian stake sale boosts Hutch's profit

Hutchison Telecom, the Hong Kong- based mobile major, on Tuesday said its first-half profits ended June have risen from the sale of its Indian assets to UK's Vodafone that included a one-time gain of Hong Kong dollars 69.3 billion (nearly US$9 billion).

Profit of Hutchison Telecom included a one-time gain of HKD 69.3 billion on disposal of interest in India, which was sold for $10.9 billion from the sale of 67 per cent stake in Hutchison Essar to Vodafone plc.

Net income (or profit attributable to equity holders of the company) surged to HKD 70 billion in this period from HKD two million a year ago, a statement from the company said.

Profit for the period was HKD 70.8 billion, after recognising a one-time gain of HKD 69.3 billion. Accordingly, the Group's unaudited profit attributable to equity holders surged to HKD 70.08 billion compared to HKD 2 million in the same period last year, it said.

The deal concluded in May. During the period, the proceeds from India transaction resulted in interest income of HKD 600 million. As on June 30, 2007, after interest expenses, the net interest income was HKD 505 million.

Excluding Indian operations, turnover of the company in which billionaire Li Ka-shing holds majority stake has soared to HKD 9.64 billion for the first half of 2007, up 12 per cent vis-a-vis a year ago.