Bharti Airtel Q1 Results: Net profit falls 46% QoQ to Rs 1,612.5 crore, ARPU stands at Rs 200

Bharti Airtel Q1 Results: Bharti Airtel on Thursday reported a consolidated net profit of Rs 1,612.5 crore, down 46 per cent quarter-on-quarter (QoQ) for the quarter ended June 30, 2023 (Q1FY24). The company had posted a profit of Rs 3,005.6 crore in the previous quarter. On a year-on-year (YoY) basis, the figure remained flat. In the year-ago period, the company reported a profit of Rs 1,606.9 crore. Revenue from operations came in at Rs 37,440 crore, up 3.97 per cent against Rs 36,009 crore registered in the previous quarter. On a YoY basis, the figure increased by 14.1 per cent.

The company added that its Mobile average revenue per user (ARPU) increased to Rs 200 in the quarter under review. 

The bottom line numbers were far below analysts' estimates. Zee Business research had projected the telecom major to post a consolidated net profit of Rs 2,600 crore, which translates to a 61.8 per cent increase on a year-on-year basis and a 13.5 per cent drop on a quarter-on-quarter basis. Its revenue was expected to come in at Rs 36,800 crore. READ MORE

Highlights for the first quarter ended June 30, 2023

Consolidated

 Overall customer base stands at ~529 million across 16 countries
 Total revenues at Rs 37,440 crore, up 14.1% YoY
 EBITDA at Rs 19,746 crore, up 18.9% YoY; EBITDA margin at 52.7%, expansion of 212 bps YoY
 EBIT at Rs 10,079 crore, up 29.0% YoY; EBIT margin at 26.9%, expansion of 310 bps YoY
 Net Income (before exceptional items) at Rs 2,902 crore
 Net income (after exceptional items) at Rs 1,612 crore
 Capex for the quarter at Rs 10,486 crore

India

 India revenue at Rs 26,375 crore, up 13.1%YoY
 EBITDA margin at 53.7% up 271 bps YoY. EBIT margin at 24.0%, up 439 bps YoY
 The customer base stands at ~ 383 million
 Capex for the quarter at Rs 9,327 crore

Africa

 Revenue (in constant currency) up 20.4%YoY
 EBITDA margin at 49.0%, up 83 bps YoY. EBIT margin at 33.0%
 The customer base stands at 143.1 million
 Capex for the quarter at Rs 1,150 crore

Consolidated EBITDA witnessed an increase of 18.9 per cent YoY to Rs 19,746 crore in Q1’24. This led to an improvement in EBITDA margin from 50.6 per cent in Q1’23 to 52.7 per cent in Q1’24 on the back of sustained focus on our War on Waste program to drive cost optimisation.

EBITDA margins across businesses remained healthy, with India's EBITDA margins improving from 51.0 per cent in Q1’23 to 53.7 per cent in Q1’24, the company said in its press release.

Consolidated EBIT increased by 29 per cent YoY to Rs 10,079 crore. 

The net debt-EBITDA ratio (annualised) and including the impact of leases as of June 30, 2023, is 2.63 times. "We continue to optimise the capital structure by judiciously allocating capital across our business to strengthen the balance sheet. In a bid to deleverage the balance sheet, we made a part prepayment of Rs 8,024 crore to DoT towards liabilities pertaining to spectrum acquired in 2015 spectrum," the company added. 

Commenting on the results, Gopal Vittal, MD, said, "We have delivered yet another quarter of strong and competitive growth across all our businesses. Our consolidated revenue grew sequentially by 4.0%, and our EBITDA margin expanded to 52.7%, underscoring the simplicity and execution of our strategy. Our focus on winning quality customers and driving premiumisation has helped us add 5.6 million new 4G customers and the highest ever postpaid customers in any one quarter."

The MD added," We exit the quarter with an industry-leading ARPU of Rs 200. Homes, Enterprise, and our digital businesses continue to exhibit strong growth momentum, reflecting the resilience and strength of our overall portfolio. We continue to make strides on our ESG agenda and in leading the charter in India for sustainable practises."