BackBharti Airtel share price surges after Q4 numbers: here are 5 reasons why
Bharti Airtel share price: The telecom giant's stock price surged by over 1% after its Q4 numbers. The company's m-cap has jumped by ₹4,461 crore as of now on Wednesday.
PremiumBharti Airtel share price: The telecom giant Bharti Airtel gained traction on exchanges during Wednesday's trading session after the company posted its Q4 numbers and concluded FY23 fiscal year. The stock has gained by over 1% and is currently trading near its day's high.
At the time of writing, the stock traded at ₹796 apiece up by 1.03% on BSE. The stock touched an intraday high of ₹797.40 apiece in the opening bell.
Airtel is among the top 10 most valued companies on BSE in terms of market share. At the current market, the company's m-cap has risen by nearly ₹4,461 crore to ₹4,43,753.29 crore on Wednesday.
In the previous trading session, the m-cap stood at ₹4,39,292.62 crore.
Consolidated Q4 earnings:
Broadly, Airtel's earnings are in line with estimates. Consolidated Q4 PAT came in at ₹3,005.6 crore, up by 49.7% YoY and 89% QoQ. Revenue from operations stood at ₹36,009 crore – up 14.3% YoY, backed by strong and consistent performance delivery across the portfolio.
Consolidated EBITDA, meanwhile, was at ₹18,807 crore, with EBITDA margins at 52.2% -- recording an improvement of 144 bps YoY.
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Avishek Datta – Research Analyst, Prabhudas Lilladher said, "Bharti reported strong Q4 results with consol EBITDA/PAT of Rs186.9 (+1.3%; PLe Rs186.5 billion) and ₹42.3 billion (+61.7%QoQ; PLe Rs36.8 billion). FY23 EBITDA/PAT stood at Rs712.7/Rs83.5 billion."
India and Africa business performance:
Airtel's India revenue stood at ₹25,250 crore, up 12.2%YoY. EBITDA margin came in at 53.1% up 225 bps YoY. Also, the customer base stands at ~ 375 million. For the quarter, CAPEX was at ₹8,989 crore in the domestic market.
Meanwhile, African business revenue, in constant currency, was up by 18.6%YoY. EBITDA margin at 49.2%, down 74 bps YoY. Here, the customer base stood at 140 million, and CAPEX stood at ₹2,394 crore in the quarter.
Operational indicators:
In the quarter, mobile ARPU increased to ₹193 versus ₹178 in Q4FY22. Datta said, compared to Jio, the ARPU and net subscriber addition of Rs179 (+0.3%QoQ) and 6.4 million (+1.5%QoQ) in Airtel.
Airtel said ARPU continues to be the best in the industry and average data usage per data customer at 20.3 GBs/month.
Further, 4G data customers up by 23.3 million YoY & 7.4 million QoQ, 67% of the overall mobile customer base. Also, mobile data consumption is up by 20.2% YoY, meanwhile, consumption per customer at 20.3 GB per month.
Additionally, homes business continues to accelerate its presence with 404 K customer net additions in Q4’23. The digital TV customer base at 15.9 million in Q4’23.
Read here: Bharti Airtel Q4 result: Firm announces dividend of ₹4, details here
Dividend:
For shareholders, the telecom major recommended a final dividend of ₹4 per fully paid-up equity share and also a Re 1 per partly paid-up equity share for the financial year FY23. The face value of dividends per share is ₹5 each.
If the dividend is approved by the shareholders at the ensuing Annual General Meeting ('AGM'), then Airtel will pay the dividend amount within 30 days from the date of the AGM.
Airtel stock price recommendation:
Datta said, "Overall very strong operational performance. Reiterate BUY with SOPT-based PT of Rs1008."
So far in 2023, Airtel's stock price has tumbled by over 3.3% to date. In a year, however, the stock has gained by 11.2%.
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