Airtel Q4 Preview: Revenue growth modest, swift mid-term growth
- In the December quarter, Airtel reported a 92 per cent jump in consolidated net profit at ₹1,588 crore on a yearly basis, while revenue from operations increased by 20 per cent to ₹35,804 crore.
Telecom major Bharti Airtel's will announce its March quarter results on May 16 and revenues are expected to show a modest growth amid muted subscriber additions and flat average revenue per user (ARPU).
The company is expected to report profit in double digits, while revenue is expected to rise in single digits (QoQ).
In the December quarter, Airtel reported a 92 per cent jump in consolidated net profit at ₹1,588 crore on a yearly basis, while revenue from operations increased by 20 per cent to ₹35,804 crore.
Here's what brokerages say:
Motilal Oswal
Brokerage Motilal Oswal expects Airtel's quarterly revenue growth at 3 percent sequentially, led by a 2 per cent increase in average revenue per user (ARPU) and subscriber addition of 1 per cent.
While, the EBITDA margin might remain little changed QoQ but may expand as much as 50 bps YoY to 51.4 percent. Motilal Oswal expects the EBITDA margin to improve 20 bps on a sequential basis to 51.7 percent.
“We expect India wireless/Airtel Africa to see a sequential revenue growth of 3 percent each” and expect capital expenditure to remain higher, it said.
ICICI Direct
The reported ARPU is likely to be muted (up 0.5% QoQ) at ₹194 with the benefit of subscriber mix, 2G customer tariff hike being offset by lower number of days during the quarter.
“Indian wireless revenues are expected to see 1.3% QoQ growth at ₹19,606 crore. India non-wireless revenues traction is expected to remain robust especially broadband and enterprise. Africa is likely to witness revenue decline of 2.6% QoQ to ₹10,797 crore, owing to seasonality and currency impact,” it said.
Emkay
Brokerage Emkay expects Bharti Airtel to benefit from subscriber gain from Vi, with the launch of 5G, the historically higher pass-through of the increase in revenue to EBITDA, its capacity to maintain high ARPU subscribers via improved network experience and sector-leading KPIs.
Brokerage Airtel’s India Mobile revenue to increase 9% YoY in FY24E, even without any tariff hike, aided by mix change, with 2G users shifting to 4G/5G; removal of the Rs99 minimum recharge plan, higher exit revenue in Q4FY23.
“We see its India Mobile revenue growing by 14% in FY25E, aided by tariff hike. Its Enterprise, Homes and Africa business segments have a long growth runway and are also expected to see swift mid-term growth (25%, 14% and 14% CAGR over FY22-25E),” said Emkay.
On Monday, the company's scrip ended 0.81 per cent up at ₹797.95 on BSE.
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First Published:15 May 2023, 07:58 PM IST
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