Telecom firm Bharti Airtel Limited posted stellar earnings for the September quarter. The firm surpassed analysts’ estimates on key parameters aided by one-time spectrum sale gains made in August and tariff hike.
As a result, on a consolidated basis, net profit grew 300% sequentially ₹1,134 crore for Q2FY22. But adjusted for this lump-sum spectrum sales gain, the net profit was reasonable. ₹594 crores.
Consolidated revenue was up 6% on a sequential basis ₹28,326 crore and Ebitda ₹14,018 crore was 6.2% higher as compared to April-June. Ebitda is short for earnings before interest, taxes, depreciation and amortization.
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Analysts at Motilal Oswal Financial Services Ltd said consolidated Ebitda growth was driven by consistent growth in India Mobile Ebitda, and market share wins and better growth than Reliance Jio. “Ebitda is up 25% from last year, indicating that the healthy Subs/ARPU equation is showing gains – all this without any tariff hikes,” said Motilal’s report. However, the Ebitda margin was flat.
Analysts at IIFL Securities Ltd said revenue from its India business grew by 5.64% and a 6.19% sequential growth in mobile revenue surpassed rival Reliance Jio. Its average revenue per user (ARPU) was in line with estimates. ₹compared to 153 ₹146 a quarter ago.
Analysts also say that its customer additions at 2.2 million were lower than the 12-13 million seen in the previous fiscal. This was due to tariff hikes, which increased market churn and SIM card consolidation.
“Bharti’s data traffic and data subscribers account for almost half of RJio’s, with a very small capacity gap; This highlights a better network experience,” said the Motilal Oswal report. Meanwhile, a major trigger for the stock is the now much-awaited tariff hike.
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