Earnings Review
Exceptional loss drags down Bharti Hexacom's Oct-Dec PAT
This story was originally published at 19:34 IST on 6 February 2025
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--Bharti Hexacom Oct-Dec PAT INR 2.61 bln vs INR 2.53 bln qtr ago
--Oct-Dec revenue INR 22.51 bln vs INR 20.98 bln qtr ago
--Apr-Dec net profit INR 10.25 bln vs INR 2.82 bln year ago
--Apr-Dec revenue INR 62.59 bln vs INR 52.21 bln year ago
--Oct-Dec mobile ARPU INR 241 vs INR 228 quarter ago
--Oct-Dec mobile data usage/user 26.20 GB/mo, up 1.1% on qtr
--Oct-Dec EBITDA INR 11.94 bln vs INR 10.46 bln quarter ago
--Oct-Dec EBITDA margin 53.0% vs 49.9% quarter ago
--Oct-Dec mobile svcs sales INR 21.9 bln vs INR 20.4 bln QoQ
--Oct-Dec mobile svcs customer base 27.6 mln, up 1.8% QoQ
--Homes svcs net added 44,000 customers Oct-Dec, up 46% QoQ
--Oct-Dec capex INR 2.83 bln vs INR 4.47 bln quarter ago
--Net debt INR 78.90 bln on Dec 31 vs INR 84.79 bln Sept 30
--Bharti Hexacom mobile svcs network towers 26,335 Dec 31 vs 26,172 Sept 30
--Mobile broadband stations 81,340 Dec 31 vs 80,907 Sept 30
--Home svcs cities covered 110 on Dec 31 vs 103 Sept 30
--Bharti Hexacom: Mobile svcs sales up YoY on residual impact of tariff hike
--Bharti Hexacom: One-time cost of INR 1.06 bln in Oct-Dec
--Bharti Hexacom: One-time cost in Oct-Dec due to regulatory levies
By Akshay V. Johnson
MUMBAI – Bharti Hexacom Ltd. reported a modest sequential growth in net profit for the December quarter on account of a net exceptional loss of INR 1.06 billion. The company's net profit grew 3% on quarter to INR 2.61 billion. But for this exceptional loss, the company would have a reported a sequential net profit growth of 45%. The net exceptional loss comprises regulatory levies of INR 1.40 billion and a gain of INR 346 million on account of the reversal of provision created for input tax credit on passive infrastructure services.
The company was able to sustain its top line revenue growth momentum on a sequential basis despite the December quarter being the second when the tariff hike-led higher average revenue per user was in play. The company reported a revenue of INR 22.51 billion for the December quarter, up 7.3% on quarter. On a year-on-year basis, the company's net profit grew 23% and revenue grew 25%. The company's other income fell 8% on quarter to INR 450 million.
The company, in which Bharti Airtel held a 70% stake as of Dec. 31, had raised tariff rates along with its parent in July. Bharti Hexacom offers consumer mobile services, fixed-line telephone, and broadband services in Rajasthan and north-eastern states including Manipur, Meghalaya, Mizoram, Nagaland, Tripura, and Arunachal Pradesh.
The company's total expenses grew marginally to INR 18.11 billion, driven by an 8% rise in spectrum charges to INR 2.07 billion. The company reported a depreciation and amortisation expense of INR 5.32 billion, marginally down from the previous quarter. On a sequential basis, the company's access charge grew 3% to INR 2.30 billion and network operating charges grew 2% to INR 4.85 billion. For the nine months ended December, the company's net profit increased more than three-fold on year to INR 10.25 billion, while the revenue rose 20% on year to INR 62.59 billion.
The company's earnings before interest, tax, depreciation, and amortisation, or EBITDA, was INR 11.94 billion for the December quarter, up from INR 10.46 billion in the previous quarter. The company's EBITDA margin for the period improved by 310 basis points to 53%. The company reported EBITDA and special losses of INR 10.42 billion. This metric provides a more accurate representation of profitability and leverage and the management will be accountable for this metric hereon, the company said in a press release.
The company's capital expenditure for the quarter was INR 2.83 billion, down from INR 4.47 billion in the previous quarter. Of the total capital expenditure, INR 2.24 billion was used in the mobile services segment and INR 598 million was used in the home and office services segment.
The company's mobile average revenue per customer increased to INR 241 in the December quarter, up from INR 228 in the previous quarter. The mobile data per user increased to 26.2 gigabytes per month, up 1.1% on quarter. The company's mobile services revenue grew 7% on quarter to INR 21.93 billion. The mobile services segment recorded an on-year growth of 25.5%, due to the residual impact of tariff hike. The company's customer base in this segment for the December quarter was 27.6 billion, up around 2% on quarter. As of Dec. 31, the company had a total of 26,355 mobile towers, up from 26,172 in the previous quarter, and mobile broadband stations of 81,340, up from 80,907 in the previous quarter.
In the home and office services segment, the company reported a revenue of INR 645 million, up from INR 599 million in the previous quarter. In the home services segment, the company had an average revenue per user of INR 499, down from INR 509 in the previous quarter. As of Dec. 31, the home services segment covered 110 cities, up from 103 cities at the end of the previous quarter. The company's customer base in this segment was 395,000 as of Dec. 31, with a net addition of 44,000 customers during the quarter.
The company declared its results after market hours. On Thursday, shares of the company closed at INR 1,310.40 on the National Stock Exchange, down 3.1%. End
Edited by Tanima Banerjee
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