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Informist, Monday, Aug 5, 2024

 

--Bharti Airtel Apr-Jun consol PAT 41.6 bln rupee vs 20.72 bln qtr ago

--Analysts saw Bharti Airtel Apr-Jun consol PAT 34.79 bln rupees 

--Bharti Airtel Apr-Jun consol sales 385.1 bln rupee vs 376 bln qtr ago 

--Bharti Airtel: Apr-Jun ARPU 211 rupees vs 209 rupees Jan-Mar 

--Bharti Airtel: Apr-Jun consol EBITDA 199.44 bln rupees 

--Bharti Airtel: Apr-Jun consol EBITDA margin 51.8% vs 52.1% qtr ago 

--Bharti Airtel: 4G/5G customer base up by 6.7 mln on qtr in Apr-Jun 

--Bharti Airtel: Apr-Jun consol capex at 80.07 bln rupees 

--Bharti Airtel:Apr-Jun India sales 290.46 bln rupees, up 10.1% on yr 

--Bharti Airtel: Apr-Jun mobile data consumption/user at 23.7 GB/mo 

 

By Anjana Therese Antony

 

MUMBAI – Aided by a recovery in its Africa operations and strong business in India, Bharti Airtel Ltd reported better-than-expected earnings for the June quarter. Also, the telecom company said its stringent cost efficiency measures helped it post a robust operating margin expansion for India operations.

 

The company's consolidated net profit for Apr-Jun rose a whopping 101% sequentially to 41.6 bln rupees, beating analysts' estimates of 34.79 bln rupees by a wide margin. Its revenue grew over 2% from a quarter ago to 385.06 bln rupees, slightly lower than the 385.76 bln rupees the Street had expected. Compared to the year-ago period, this translates to a 158% rise in the bottomline and a near 3% growth in the top line.

 

The company's revenue from operations in India grew 10.1% on year to 290.46 bln rupees during the June quarter, supported by a strong and consistent performance across the portfolio, it said in a press release. The company's revenue from mobile services in India also grew nearly 11% on year, led by strong 4G/5G customer additions, customer mix improvement, and increase in average revenue per user.

 

The number of 4G/5G customers of Bharti Airtel increased by 6.7 mln sequentially and the average revenue per user rose to 211 rupees from 209 rupees in Jan-Mar. Bharti Airtel is an industry leader in terms of average revenue per user, which is higher than its peer Reliance Jio Infocomm's average revenue per user of 181.7 rupees. "We continue to believe that industry needs over 300 rupees ARPU at the minimum for financial stability," Gopal Vittal, managing director, was quoted as saying in the press release. 

 

When it comes to capital expenditure, the consolidated figure was 80.07 bln rupees, for India operations it was 67.81 bln rupees, and for the African business it was 12.25 bln rupees, the company said. 

 

AFRICA OPERATIONS

The company's revenue from Africa, which constitutes about 25% of its total revenue, rose 19% on year in constant currency terms. In the previous quarter, this segment took a hit due to the weakness in Nigerian naira and had reported a near 17% on-year decline in its revenue to $1.12 bln. The naira depreciated by 7% against the dollar in Apr-Jun compared to 60% in the March quarter, Nomura Global Markets Research had said in its earnings preview report.

 

With respect to operating margin, the metric declined 313 basis points from a year ago to 45.3% in constant currency terms. The customer base of the Africa business was 155 mln as of Jun 30, as per the press release. 

 

BHARTI HEXACOM

The company's recently listed arm, Bharti Hexacom, also released its quarterly results today. The subsidiary's revenue for the quarter rose 2.3% sequentially to 19.11 bln rupees. Its operating profit rose 6.6% on year to 9.12 bln rupees in Apr-Jun and operating margin shrunk 313 bps on year to 47.7%. The company's average revenue per user rose to 205 rupees from 194 rupees a year ago, driven by continued improvement in product mix and focus on quality acquisitions, as per a press release.

 

Bharti Hexacom, the shares of which were listed on the bourses on Apr 12 at 755 rupees, is a communications solutions provider offering consumer mobile services, fixed-line telephone and broadband services to customers in Rajasthan and the North East telecommunication circles in India.

 

Today, shares of Bharti Airtel closed nearly 2% lower at 1,465.70 rupees on the National Stock Exchange, while those of Bharti Hexacom ended nearly 3% lower at 1,114.85 rupees. The post-earnings webinar of Bharti Airtel and Bharti Hexacom is scheduled at 1430 IST on Tuesday, during which investors will closely watch out for management comments on progression in 5G adoption, subscriber addition, traction in home broadband, and business outlook.  End

 

US$1 = 83.85 rupees

 

Edited by Aditya Sakorkar

 

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