Bharti Airtel’s shares went up by almost 4% on February 6 due to strong earnings in the third quarter (Q3), despite facing challenges from forex losses.
In the October-December period, Bharti Airtel made a consolidated net profit of Rs 2,442.2 crore, which is a 54% increase compared to the same quarter last year. Although this was positive news, it fell short of Moneycontrol’s estimate of Rs 3,308.50 crore.
The company’s total revenue for Q3 was Rs 37,900 crore, showing a 6% growth from Rs 36,062 crore a year ago. The revenue met the expectations of the market.
Bharti Airtel’s average revenue per user (ARPU) was Rs 208, up from Rs 193 the previous year. This increase was due to the company’s strategy of gaining high-value customers and improving realizations.
During Q3, Bharti Airtel continued to attract customers, reaching a base of 48.3 million. The company added 28.2 million 4G/5G data customers, marking a 13.0% increase from the previous year.
The company’s EBITDA margin improved in India, rising to 53.9% in Q3 from 52.7% in the same period last year. This improvement was attributed to better operating leverage and cost efficiencies from its ‘War on Waste’ program.
According to brokerage firm Morgan Stanley, key highlights of Bharti Airtel’s Q3 earnings include improved revenue from the India mobile business and EBITDA, driven by a better subscriber mix.
The firm has an ‘equal-weight’ call on the stock with a price target of Rs 1,015. Please note that investment decisions should be made after consulting certified experts.