Home / Markets / Stock Markets /  Bharti Airtel shares plunge after Q4 results. What should investors do?
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Shares of Bharti Airtel plunged nearly 2% to 695 apiece in Wednesday's trading session on the BSE despite the telecom operator Bharti Airtel posting more than twofold year-on-year (YoY) jump in its consolidated net profit to 2,008 crore, buoyed by a lift in average revenue per user (ARPU) and an exceptional gain.

“We believe consistent share gains from superior network quality, improving ARPU from implicit tariff hikes & 4G upgrades and impressive digital metrics should drive a re-rating. Reiterate OW," said JPMorgan in a note. 

The brokerage house has overweight rating on Bharti Airtel shares with price target (March 2023) of 900 on ARPU driving strong growth and subscription additions which were better-than-expected.

The telecom firm's revenue from operations rose over 22% to 31,500 cr during Q4 FY22, compared to the year-ago period. Airtel's Average Revenue Per User or ARPU, a key metrics for all telcos, came in at 178 for the quarter, up from 145 in Q4'21. Sequentially too, the APRU was notably higher than 163 logged in December quarter.

“India Mobile’s EBITDA rises 12% QoQ (in line) on healthy ARPU-led revenue growth, incremental EBITDA margin stands healthy at 64%. Airtel is the only player that saw subscriber growth during the quarter despite the tariff hikes that triggered SIM consolidation in the sector.," said domestic brokerage Motilal Oswal which has Buy rating on the telecom stock.

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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