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Contents

1 Bharti Airtel Q1 results 2024

Bharti Airtel Q1 results 2024

Bharti Airtel Q1 Results: Net Profit Surges 158% to ₹4,160 Crore, Revenue Increases by 2.8%

Bharti Airtel, one of India’s leading telecom operators, has reported a remarkable 158% increase in net profit for the first quarter of the fiscal year 2024-25. This comprehensive analysis delves into the key highlights of the company’s Q1 results, providing insights into its financial performance, strategic initiatives, and market position.

Key Financial Highlights

1. Net Profit and Revenue

Net Profit: Bharti Airtel’s consolidated net profit soared 158% to ₹4,159.9 crore in Q1 FY25, compared to ₹1,612.5 crore in the same period last year.
Revenue: The company’s consolidated revenue from operations grew by 2.8%, reaching ₹38,506.4 crore, up from ₹37,440 crore in the year-ago quarter.

2. EBITDA and Margins

EBITDA: The telecom giant reported a 1% year-on-year (YoY) increase in consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) to ₹19,944 crore.
EBITDA Margin: The EBITDA margin stood at 51.8%, reflecting the company’s efficiency in managing its operational costs.

Management Commentary

Gopal Vittal, Managing Director and CEO of Bharti Airtel, commented on the company’s performance:

“Q1 FY25 was yet another steady quarter with India revenue growing at 1.9% sequentially and sustained EBITDA margins expansion to 53.7%. Our stringent focus on driving cost efficiencies is reflected in strong operating leverage. Africa continues to deliver strong underlying constant currency revenue growth. India operations added 6.7 million smartphone customers and reported an improved ARPU of ₹211. Our postpaid strategy continues to yield results with 0.8 million net adds. During the quarter, we accelerated pace on FWA services expansion across key towns. Our Wi-Fi services (FTTH and FWA) are now available in over 1,300 cities. Our digital portfolio is shaping up well and it is geared for accelerated growth to add strength to our already diversified portfolio.”

He further added, “In the recently concluded spectrum auction, we successfully renewed spectrum that was expiring in 6 circles and further bolstered our sub-giga hertz and mid-band holding in key circles by investing ₹6,857 Crores. The industry saw much needed action on tariff repair, which is positive for industry’s financial health amid ongoing large network capex. We continue to believe that the industry needs over Rs 300 ARPU at the minimum for financial stability.”

Operational Highlights

1. Subscriber Growth

Smartphone Users: Bharti Airtel added 6.7 million smartphone customers in Q1 FY25.
Postpaid Subscribers: The company’s postpaid strategy yielded an additional 0.8 million net subscribers.

2. ARPU Improvement

Average Revenue Per User (ARPU): The mobile ARPU increased to ₹211 in Q1 FY25 from ₹200 in Q1 FY24.

3. Service Expansion

Fixed Wireless Access (FWA): The company accelerated the expansion of its FWA services across key towns.
Wi-Fi Services: Bharti Airtel’s Wi-Fi services (FTTH and FWA) are now available in over 1,300 cities.

4. Digital Portfolio

Growth: The digital portfolio is poised for accelerated growth, adding strength to Bharti Airtel’s diversified service offerings.

Market and Stock Performance

1. Stock Movement

NSE Performance: Shares of Bharti Airtel settled 1.6% lower at ₹1,469 on the NSE ahead of the earnings announcement.
Trading Stats: On the day of the results, Bharti Airtel’s stock traded at ₹1,460.5, down 2.23% on the NSE.

2. Spectrum Auction

Investment: Bharti Airtel invested ₹6,857 crore in the recent spectrum auction to renew expiring spectrum and enhance its sub-giga hertz and mid-band holdings.

Strategic Focus

1. Tariff Repair

Industry Health: The recent actions on tariff repair are seen as positive for the financial health of the telecom industry amid ongoing large network capital expenditures (capex).
ARPU Target: Bharti Airtel aims for an industry-wide ARPU of over ₹300 for financial stability.

2. Cost Efficiencies

Operating Leverage: The company’s stringent focus on cost efficiencies has resulted in strong operating leverage, contributing to sustained EBITDA margins.

Conclusion

Bharti Airtel’s Q1 FY25 results highlight the company’s robust financial performance, strategic growth initiatives, and market resilience. With significant improvements in net profit, revenue, and ARPU, along with strategic investments in spectrum and service expansion, Bharti Airtel continues to solidify its position as a leading telecom operator in India and globally.

FAQs

1.What was Bharti Airtel’s net profit in Q1 FY25?

A. Bharti Airtel reported a net profit of ₹4,159.9 crore in Q1 FY25, a 158% increase from the previous year.

2.How much did Bharti Airtel’s revenue grow in Q1 FY25?

A. The company’s consolidated revenue grew by 2.8% to ₹38,506.4 crore.

3.What is Bharti Airtel’s current ARPU?

A. The average revenue per user (ARPU) increased to ₹211 in Q1 FY25.

4.How many smartphone users did Bharti Airtel add in Q1 FY25?

A. Bharti Airtel added 6.7 million smartphone users in Q1 FY25.

5.What are Bharti Airtel’s key areas of service expansion?

A. The company is focusing on expanding Fixed Wireless Access (FWA) and Wi-Fi services, now available in over 1,300 cities.

6.How did Bharti Airtel perform in the recent spectrum auction?

A. Bharti Airtel invested ₹6,857 crore to renew expiring spectrum and enhance its sub-giga hertz and mid-band holdings.

7.What is the company’s focus on tariff repair?

A. Bharti Airtel emphasizes the need for an ARPU of over ₹300 for industry financial stability and has seen positive industry action on tariff repair.