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Business News/ Companies / Company Results/  Airtel Q3 FY22 net profit up 91%, misses estimates
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Airtel Q3 FY22 net profit up 91%, misses estimates

Revenues also missed estimates, rising by more than 20% on-year to Rs35,804 crore with more 4G customer additions coupled with sustainable growth in postpaid and enterprise segments, and by 3.6% on-quarter from Rs34,526 crore in the Sept quarter

Airtel Business led industry with 16.4% on-year revenue growth by leveraging the converged portfolio of Airtel and harvesting the rapidly increasing demand for data and connectivity related solutions. (Mint)Premium
Airtel Business led industry with 16.4% on-year revenue growth by leveraging the converged portfolio of Airtel and harvesting the rapidly increasing demand for data and connectivity related solutions. (Mint)

NEW DELHI : Bharti Airtel’s consolidated net profit missed estimates even as it rose 91% to Rs 1,588.2crore for the quarter ended December 2022 from Rs 829.6 crore the same quarter last year, but down by 26% from September quarter’s profits of Rs 2,145 crore, on the account of exceptional charge of  501 crore of license fee of one of the group’s subsidiaries.  

Revenues also missed estimates, rising by more than 20% on-year to 35,804 crore with more 4G customer additions coupled with sustainable growth in postpaid and enterprise segments, and by 3.6% on-quarter from  34,526 crore in the September quarter.   

The No 2 carrier’s India revenues were at 24,962 crore, up 19.4% on-year while revenue from mobile business grew by 20.8% on-year to Rs 19,352 crore owing to improved realisation, strong 4G customer additions.  

The Sunil Bharti Mittal promoted telco’s average revenue per user—a key measure of profitability—was Rs 193 for the quarter, the highest between market leader Reliance Jio and No 3 carrier Vodafone Idea for the quarter, on the back of focus on quality customers and premiumization. The ARPU was 163 in the same quarter last year and 190 in the September 2022 quarter.  

“We have delivered another quarter of consistent and competitive growth across all our businesses," said Bharti Airtel managing director Gopal Vittal, who also noted that the carrier had set up 8,600 towers in the quarter to improve network and quality of services.  

The carrier’s consolidated net income before exceptional items for the quarter was 1,994 crore. After exceptional items profit came to  1,588 crore. 

The carrier said in its quarterly report that it incurred an exceptional charge of 669.8 crore, which came to 501.2 crore after tax, during the quarter on account of provision for license fee related to earlier periods in one of the group’s wholly-owned subsidiaries.

Airtel saw its earnings before interest, tax, depreciation and amortisation rise by 25% on-year to 18,601 crore, with margins expanding by 1.1 percentage points to 52% in the quarter. India mobile services EBITDA improved to 53.8% from 49.3% in the same comparison period.  

The carrier’s net debt remained static at Rs 2.09 trillion in the quarter ended December FY23, having risen sharply from Rs 1.66 trillion in September quarter last fiscal.    

Airtel’s free cash flow dropped to 9,287 crore compared to Rs 10,001 crore on a consolidated basis in the same comparison period. During the quarter, the capex spend rose sharply to 9313 crore compared to 6,101 crore, as the carrier continues to advance capex to fuel its expansion of 5G services across the country.     

“Our 5G rollout is on track to cover all towns and key rural areas by March 2024," he added. Airtel was the first telecom operator in India to roll out 5G services with a launch in eight cities including the metros in October last year. 

The carrier said that its Home business added 432,000 customers during the quarter to reach to a total base of 5.6 million on the back if its asset-light local cable operator partnership model. Airtel is currently live in over 1140 cities through this model.  

Airtel Business led industry with 16.4% on-year revenue growth by leveraging the converged portfolio of Airtel and harvesting the rapidly increasing demand for data and connectivity related solutions. Our strategy of going both wide to penetrate more accounts as well as deep has led to continuous outperformance and market share expansion. 

It noted that its Digital TV business has added 214k customers – highest in last eight quarters in a challenging industry. 

“Our strategy of winning quality customers has helped us add 6.4 Mn 4G customers and exit the quarter with an industry leading ARPU of 193. Postpaid, Enterprise, Homes as well as our Africa business sustained their momentum while the DTH business showed signs of growth in an industry that continues to be under pressure. Our overall performance is testimony to the breadth and diversity of our portfolio that spans across both geographies as well as businesses," Vittal said. 

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ABOUT THE AUTHOR
Gulveen Aulakh
Gulveen covers both corporate and economy, and policy sections of Mint. She also covers telecom, IT from the corporate side and disinvestment, finance ministry from the economy side. Gulveen finds the rare mix of sectors she covers to be incredibly interesting.
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Published: 07 Feb 2023, 08:20 PM IST
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