Bharti Airtel share price under pressure: Q4 earnings, dividend, here are key factors to know
- Stock prices of Bharti Airtel was under pressure ahead of its March 2023 quarter earnings. The company is also set to announce a dividend for FY23 in a board of directors meeting held on May 16th.
Telecom giant, Bharti Airtel's share price struggled on Tuesday as investors carried selling ahead of its Q4 earnings report card for FY23. The telco is also set to declare a dividend for shareholders later today. The stock opened over ₹800 mark but corrected soon after to clock a little over 1% drop on BSE so far.
At the time of writing, Airtel's share price traded at ₹793.35 apiece down by 0.6% on BSE. The stock has dipped by at least 1.03% with an intraday low of ₹789.75 apiece in early trade. The stock opened at the day's high of ₹802 apiece.
On the previous day, the stock stood at ₹797.95 apiece.
Airtel is set to announce its March 2023 quarterly earnings. Here are the key factors to know!
1. What will be PAT and revenue in Q4FY23?
ICICI Direct Research expects Bharti Airtel to report a revenue of ₹35,946.1 crore in Q4FY23 up by 14.1% YoY and 0.4% QoQ. PAT is seen at ₹2,440.4 crore, rising by 21.5% YoY and 53.7% QoQ.
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The brokerage expects Indian wireless revenues to record 1.3% QoQ growth at ₹19,606 crore. India's non-wireless revenue traction is expected to remain robust, especially broadband and enterprise. Africa is likely to witness a revenue decline of 2.6% QoQ to ₹10,797 crore, owing to seasonality and currency impact. Consolidated reported revenues are expected to be muted (up 0.4% QoQ) at ₹35946 crore.
2. EBITDA and margins in Q4:
EBITDA is expected to see a mixed performance. ICICI Direct expects Airtel's operating profit to be at ₹18,370.3 crore in Q4FY23, up by 14.5% YoY but lower by 0.4% QoQ.
Also, the brokerage expects India's EBITDA margins at 52.7%, flat QoQ, given the higher network opex on the 5G rollout. Overall consolidated margins are expected at 51.1%, down 40 bps QoQ, owing to weak Africa margins.
3. Q4 ARPU and customer base expectations:
According to the brokerage, Airtel's ARPU is likely to be muted (up 0.5% QoQ) at ₹194 with the benefit of subscriber mix, a 2G customer tariff hike being offset by a lower number of days during the quarter.
While expectations of modest addition of ~1 million subscribers with SIM consolidation restricting subscriber addition are likely.
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4. Dividend announcement:
Airtel in its regulatory filing on May 11 said the board of directors of the company shall inter-alia "consider the recommendation/ declaration of dividend, if any, for the financial year 2022-23, in its meeting scheduled to be held on Tuesday, May 16, 2023."
5. Q3FY23 performance:
In the previous quarter (October to December 2022 period), Airtel posted a consolidated net profit of ₹1,588.2 crore up by 91% YoY, Revenue from operations stood at ₹35,804 crore, up by 20% YoY.
Meanwhile, the company's average revenue per user (ARPU) per month increased to ₹193 as of December 31, 2022.
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