Bharti Airtel Limited’s March quarter (Q4FY23) results were good. on consolidated revenue 36,009 crore was up 14% year-on-year. The growth was primarily led by the India mobile business, which saw its revenue grow by 12%, driven by healthy subscriber growth and improved acquisitions. Sequentially, consolidated and India revenue was flat.
Vodafone Idea Limited’s subscriber base has been declining, and this, to an extent, contributed to subscriber additions for other companies in the industry during the quarter, including Airtel. Thus, Airtel’s India mobile business subscriber base stood at 335 million as of March 31, compared to 332 million at the end of December. According to the management, India mobile revenue improved due to 4G subscriber additions in the year. Also, the company’s continued focus on improving customer mix, i.e. building on a quality customer base, has helped.
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However, the absence of a tariff hike in the last quarter meant that the average revenue per user (ARPU) did not see a significant increase, though it remained stable sequentially. on the ear 193 was up 8% year-over-year and was flat sequentially despite a lower number of days during the quarter. Analysts at Jefferies India said this was partly due to an improved subscriber mix (addition of postpaid and data subscribers at an 8-quarter high), and partly due to increase in voice tariffs in 4Q. “On a normalized basis, Arpu would have 195,” Airtel management said. Overall, the reported consolidated net profit was up 50% year-on-year 3,005 crores. The company’s capex was high in Q4 due to a sharp increase in India capex amid the 5G rollout. Capex intensity is expected to remain high in FY24. This means the return ratio is likely to remain under pressure and could weigh on investor sentiment for the stock, which is down about 8% from its 52-week high. 860.55 each in November.
In the near term, there are two major challenges. An industry short of tariff hikes. “As the competitive intensity between Bharti Airtel and Jio continues to remain high, the tariff hike is likely to be delayed,” said an analyst requesting anonymity. as near-term overhang.
“Aggressive customer-centric growth plans will create a virtuous cycle of growth for Bharti,” Prabhudas Lilladher reported on May 17. 875 ( 977 earlier) as it increased debt and increased India Mobile’s net worth by 9.0x (8.5x earlier).
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