Telecom major Bharti Airtel is likely to report healthy Q3FY22 results. The company is expected to post year-on-year growth in top and bottom line, while the margins and ARPU are likely to improve during the quarter, a Zee Business research report mentioned. 

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Airtel’s profit may grow by 8 per cent to Rs 1225 crore in the December-end quarter FY22 as against to Rs 1134 crore in the previous quarter. While the revenue is likely to grow 4.5 per cent to Rs 29600 crore in the December-end quarter as compared to Rs 28326 crore in September-end quarter. 

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While the company’s EBITDA may come at Rs 14700 crore, up 8 per cent sequentially and margins may improve by 49.7 per cent and ARPU (Average revenue per user) to Rs 163, up 6.5 per cent quarter-on-quarter, the Zee Business research report pointed out. 

According to Motilal Oswal earnings expectations, the brokerage estimates marginal 4 per cent QoQ ARPU growth for Q3FY22 and estimate that Indian Wireless’ revenue growth of 4.5 per cent QoQ. 

It said, the Indian mobile subscribers to remain flattish sequentially and enterprise business to see 2 per cent sequential revenue growth. 

“The quarter should reflect the focus of telcos on ARPU over subscriber growth, as witnessed by tariff hikes taken in December 2021 by all three telcos (after two years) that should outweigh the weakness in Oct’21 subscriber trend,” Motilal Oswal said in its earnings expectations.  

Bharti’s ARPU is expected to increase driven by improvements in customer mix and tariff hikes and its consolidated EBITDA should increase 4.5 per cent QoQ, the brokerage also noted. 

We believe CAPEX should increase with the gradual unlocking of the economy and to deal with the rising data demand seen in the last few quarters, post-monsoon in the overall telecom sector, Motilal Oswal also mentioned in its results preview. 

While another brokerage house ShareKhan see marginal growth in profit by over 5 per cent, while revenue to come double, sequentially.