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Business News/ Companies / Company Results/  Bharti Airtel Q4 results: Net profit declines 31% to 2,072 crore; 4 key highlights from earnings
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Bharti Airtel Q4 results: Net profit declines 31% to ₹2,072 crore; 4 key highlights from earnings

The consolidated revenue for the company grew 4.4 per cent to ₹37,599 crore, led by devaluation of African currencies during the period, particularly Nigerian Naira.

Bharti Airtel Q4 results (HT_PRINT)Premium
Bharti Airtel Q4 results (HT_PRINT)

Telecom giant Bharti Airtel announced its fourth quarterly results on Wednesday, May 14. The telecom company witnessed a 31 per cent decline in its consolidated net profit to 2,072 crore, versus 3,006 crore same period a year ago. The profit significantly fell short of Street estimates, with the figure hovering around 3,274 crore.

The consolidated revenue for the company grew 4.4 per cent to 37,599 crore, led by devaluation of African currencies during the period, particularly Nigerian Naira. 

Also read: Varun Beverages ramps up domestic capacity in Q1

“We ended the year on a strong note with consistent performance across all businesses, both on customer metrics as well as financial parameters. India revenue (adjusted for Beetel) grew by 1.7% with EBITDA margin expanding to 54.1%, despite one day less in the quarter. Consolidated performance was impacted primarily by the devaluation of the Nigerian Naira," said Gopal Vittal, MD at Bharti Airtel.

Here are 4 key highlights from Bharti Airtel Q4 results -

Operating performance

The telecom giant reported a consolidated net profit of 2,072 crore for the March quarter of the financial year 2023-24, marking a 31.1 percent decline from the corresponding period of the previous year.

The company further revealed that its consolidated revenue for Q4 reached 37,599 crore, registering a 4.4 percent increase compared to the previous year. 

In the March quarter, consolidated EBITDA increased by 4 per cent year-on-year to reach 19,590 crore, compared to 18,807 crore recorded in the corresponding quarter of the previous year. However, EBITDA margins experienced a slight decline of 10 basis points, settling at 52.1 per cent.

Dividend

The Board has additionally proposed a final dividend of 8 per fully paid-up share and 2 per partly paid-up equity share for the fiscal year 2023-24.

“For FY24, the Board has recommended a final dividend of Rs. 8 per fully paid-up equity share of face value of Rs. 5 each and Rs. 2 per partly paid-up equity share of face value of Rs. 5 each (paid-up Rs. 2.00 per equity share)," the company said in its official release.

Also read: Devyani International Q4 result: Company reports a loss of 49 crore; adds 47 stores in the fourth quarter

ARPU growth

Airtel's average revenue per user (ARPU) for the quarter reached 209, marking an increase from 193 recorded in the corresponding quarter of the previous year. This growth can be attributed to the company's continued efforts in acquiring high-value customers and enhancing its product mix.

“We added 7.8 million smart phone customers and delivered an industry leading ARPU of Rs. 209. Our relentless focus on improving customer experience has resulted in 20% churn reduction during the quarter. Our simple and clear strategy coupled with razor-sharp focus on execution enabled us to end the quarter with life-time high market share across all businesses. Our efforts on digitizing Airtel are now gathering velocity and is being visibly felt across all parts of our operations. At the same time, our return on capital employed continues to remain low due to the absence of tariff repair in the industry," Vittal added.

Segment-wise performance

Homes business sustained its growth momentum and delivered a revenue growth of 20 per cent YoY, result of company’s strategy to harness the growing demand of high-speed and reliable broadband in India.

Airtel Business delivered revenue growth of 14.1 per cent YoY by leveraging the converged portfolio of Airtel and harvesting the rapidly increasing demand for data and connectivity solutions.

Also read: PVR Inox Q4 results: Net loss narrows to 130 crore, revenue rises 10% YoY

Digital TV continues to consolidate its strong market position with 16.1 million customer base at the end of quarter. Company’s focus on market specific strategy coupled with simplified pricing and convergence approach ensured that the business continues to grow its market share.

“We have been scaling our digital capabilities to deliver best-in-class experience and offering differentiated digital services to our customers. We have robust customer base of ~220 Mn MAUs across our key digital assets – Thanks, Xstream and Wynk. Our digital services span both across B2B and B2C and include Ads, Cpaas, Airtel IQ, IoT, Cloud, SD-WAN and Airtel Finance. Airtel Xtream play has over five million paid customer mark and continues to be the fastest growing OTT aggregator in the country," the company said.

 

 

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Published: 14 May 2024, 05:09 PM IST
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