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Business News/ Companies / News/  Bharti Airtel Q3 earnings to be announced today. Here's what to expect
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Bharti Airtel Q3 earnings to be announced today. Here's what to expect

In Q3FY23, Airtel garnered a consolidated net profit of ₹2,145 crore up by 89% YoY. Revenue from operations jumped 21.9% YoY to ₹34,527 crore.
  • As of September 30, 2022, Airtel's average revenue per user (ARPU) increased to ₹190 from ₹183 in the preceding quarter.
  • Bharti Airtel will announce its financial performance for third quarter of FY23 on February 7th. (MINT_PRINT)Premium
    Bharti Airtel will announce its financial performance for third quarter of FY23 on February 7th. (MINT_PRINT)

    Bharti Airtel will be in focus on Tuesday as this telecom giant is scheduled to announce its third quarter numbers for FY23. The Q3 is likely to be robust in terms of profitability and top-line front, with a modest upside in EBITDA margins. ARPU and subscribers may also pick up. However, Africa business revenue growth is seen to witness somewhat muted growth.

    Ahead of Q3 figures, Airtel stock was under pressure on Monday amidst a broader bearish market tone. The telco's share price closed at 789.40 apiece down by 0.46% on BSE. Airtel is the tenth largest firm in terms of market share with a valuation of nearly 4.40 lakh crore as of February 6th.

    During September 2022 quarter, Airtel garnered a consolidated net profit of 2,145 crore up by 89% from 1,134 crore in the corresponding quarter of last year. Revenue from operations jumped 21.9% YoY to 34,527 crore in the quarter backed by strong and consistent performance delivery across the portfolio and crossing 500 million customers globally. EBITDA came in at 17,721 crore up 6.7% YoY.

    As of September 30, 2022, Airtel's average revenue per user (ARPU) increased to 190 from 183 in the preceding quarter.

    What to expect from Bharti Airtel in Q3?

    In its preview report, ICICI Direct said, "The reported ARPU is likely to be up 2% QoQ at 194 with the benefit of subscriber mix during the quarter. We expect modest addition of ~1 mn subs with SIM consolidation restricting subscriber addition. Indian wireless revenues are expected to see 2.1% QoQ growth at 19,359 crore. India non-wireless revenues traction are expected to remain robust, especially broadband and enterprise."

    Whereas Prabhudas Lilladher has factored subscriber growth of 1.5 million (Q2: 0.49 million) to 327.8 million, coupled with an ARPU increase of 3.5% QoQ to 196 for Airtel.

    However, ICICI Direct expects Airtel's Africa to likely witness muted revenue growth of 0.4% QoQ to 10,485 crore. Prabhudas believes Africa business is expected to see revenue growth of 5.1% QoQ, and they have factored in 4.5% QoQ revenue growth for the enterprise segment along with 30bps EBIDTA margin improvement.

    Also, Prabhudas expects Airtel's home services segment to see revenue growth of 6.0% QoQ and margin growth of 3.2% QoQ. For DTH, the brokerage has factored in -1.2% QoQ growth.

    On the other hand, ICICI Direct expects the company's India EBITDA margins at 52.5%, up 70 bps QoQ, aided by the residual benefit of lower SUC, despite higher network OPEX on 5G rollout. Overall consolidated margins are expected at 51.3%, up 30 bps QoQ.

    Among key monitorable is a commentary on ARPU trajectory and non-wireless business.

    ICICI Direct expects Bharti Airtel's overall revenue at 35,180.3 crore in Q3FY23 up by 17.8% YoY and 1.9% QoQ. EBITDA is seen at 18,055.3 crore higher by 22.8% YoY and 2.6% QoQ. PAT is likely to post triple-digit growth of 226.9% YoY to 2,712.4 crore. Sequentially, PAT is seen up by 26.4%.

    Meanwhile, Prabhudas expects Bharti’s Q3FY23 consolidated revenue to increase to 35,890 crore (+3.3% QoQ) and EBITDA to rise to 17,850 crore (+ 1.5% QoQ). It expects PAT to grow to 22.5 billion (+5% QoQ).

    Meanwhile, research analysts at ICICI Securities in their report said, said, "We expect Bharti’s India revenues to grow 0.6% QoQ (17% YoY) to Rs247 billion led by mobile segment (up 1.8% QoQ / 20% YoY). India's EBITDA is likely to be up 2% QoQ (23.6% YoY) to Rs128 billion; it will benefit from lower SUC partially offset by higher network cost due to the 5G rollout. Bharti Africa’s USD revenue and EBITDA may rise 1% QoQ each to $1,321 million and $642 million respectively. Consolidated revenue could rise 1.7% QoQ to Rs351 billion and EBITDA 2.6% to Rs180 billion. Net profit is seen at Rs32 billion benefiting from lower forex losses partially offset by 5G spectrum cost."

     

    Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

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    Published: 07 Feb 2023, 08:48 AM IST
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