Bharti Airtel shares under pressure after telecom firm fails to keep up with Street estimates in Q2

Bharti Airtel share price NSE, Bharti Airtel share price target, Bharti Airtel share price Q2 result: Bharti Airtel shares declined on Wednesday, November 1, after the private sector telecom firm reported a weaker-than-expected set of quarterly results. The Bharti Airtel stock declined by as much as Rs 18.2, or two per cent, to Rs 896 apiece during the session on BSE, falling for a second straight session. Bharti Airtel shares settled 0.15 per cent lower at Rs 913 on NSE.

After market hours on Tuesday, the telecom company reported a steep drop in net profit for the second quarter ended September 30, hurt by a one-time charge, through its revenue rose as more customers joined its 4G and 5G network. 

Bharti Airtel Q2 results highlights 

Bharti Airtel posted a 37.5 per cent sequential fall in consolidated net profit to Rs 1,341 crore for the July-September period, owing to an exceptional loss of Rs 1,570 crore.   Its revenue for the quarter under review declined 1.1 per cent to Rs 37,044 crore compared with the previous three months, according to a regulatory filing.  

The company reported Rs 19,514 crore in earnings before interest, taxes, depreciation and amortisation (EBITDA) for the September quarter, down 0.4 per cent on a quarter-on-quarter basis.   Bharti Airtel’s margin, a key measure of profitability, improved by 40 basis points (bps) to 52.7 per cent for the quarter under review compared with the April-June period.  

"This has been yet another quarter of solid revenue growth and improved margins. Our India revenue continues to gain momentum and grew sequentially by 2.4 per cent. Our consolidated revenue, however, was impacted by the devaluation of the Nigerian Naira," said Gopal Vittal, managing director at Bharti Airtel. 

Bharti Airtel’s average revenue per user (ARPU), a key metric of revenue for telecom operators, improved to Rs 203 for the quarter ended September 2023 from Rs 190 for the corresponding period a year ago. The company recorded 7.7 million 4G/5G net subscribers addition and exited the quarter with an "industry-leading ARPU of 203", he added. Read more on Bharti Airtel Q2 earnings 

EDITOR’S TAKE | Results below estimates on revenue and profit fronts 

Zee Business Managing Editor Anil Singhvi said that while the telecom company’s results were below estimates on the top-line and bottom-line fronts, they were along expected lines from an operational perspective. He also pointed out that the telecom company has a strong position in terms of free cash flow.  

Bharti Airtel share price target: Here's what analysts suggest on the counter:  

With inputs from agencies  

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