Bharti Airtel Q4 net profit jumps 50% YoY to ₹3,006 crore, beats estimates

• India’s second-largest telecom company Bharti Airtel reported average revenue per user of ₹193 for Q4, unchanged from the December quarter.
  
• Airtel’s revenue in the March quarter rose 14% YoY and 0.5% sequentially to ₹36,009 crore, in line with analyst estimates.
  
• The company also said it will finish the rollout of 5G services by the end of 2023, ahead of its planned completion timeline of March 2024.
  

India’s second-largest telecom company Bharti Airtel on Tuesday reported a 50% year-on-year (YoY) rise in Q4 net profit to ₹3,006 crore. On a sequential basis, the telco reported an 89% increase in net profit from ₹1,588 crore in Q3, higher than analyst estimates of a 54% rise.

Airtel’s revenue in the March quarter rose 14% YoY and 0.5% sequentially to ₹36,009 crore, in line with analyst estimates.

For FY23, Airtel’s net profit nearly doubled to ₹8,346 crore, while revenue rose 19.4% to ₹1.39 lakh crore.

Its spectrum usage charges fell 6% YoY to ₹2,828 crore while its overall expenses rose 12% to ₹17,312 crore in the March quarter.

Airtel’s average revenue per user (ARPU) remained unchanged at ₹193 in Q4 when compared with the December quarter, while its 4G subscriber base increased to 224.1 million from 216.7 million in Q3.

Overall, its 4G subscribers as a percentage of total subscribers stood at 67% in Q4, up from 62% in the same period a year ago. “Our focus on acquiring quality customers has resulted in 7.4 million new 4G customers, as we exit the quarter with an industry leading ARPU of ₹193,” said Gopal Vittal, managing director, Bharti Airtel.

Also aiding Airtel’s ARPU growth in the March quarter was a 20.5% YoY increase in data consumption at 20.3GB per user per month.

In terms of margins, too, Airtel reported a moderate uptick during the March quarter. The telco’s earnings before interest, taxes, depreciation and amortisation (EBITDA) margins rose to 52.2% in Q4, from 50.76% a year ago.

“A simple strategy and our relentless focus on execution has ensured that we close the year with market share gains across all businesses. We are also pleased to see the increased velocity of our digital deliveries across all parts of our business,” Vittal added.

Particulars	FY23	FY22	Q4 FY23	Q4 FY22
Revenue	₹1,39,145 crore	₹1,16,547 crore	₹36,009 crore	₹31,500 crore
Net profit	₹8,346 crore	₹4,255 crore	₹3,006 crore	₹2,008 crore
ARPU	NA	NA	₹193	₹178
Subscribers (India)	375 million	369 million	375 million	358 million

Source: Company reports

Airtel’s India subscriber base grew by 6 million sequentially in the March quarter, while its overall subscriber base stood at 518.4 million, up 7.6 million from the previous quarter.

5G rollout ahead of target

Talking about the company’s 5G rollout strategy, Vittal said the company intends to expand the coverage to all towns by the end of 2023, three months earlier than the initial target of March 2024.

“We continue to ramp up our 5G rollout and expect to connect all major towns and key villages by the end of this year,” Vittal said.

Airtel’s 5G services are currently live in over 3,000 cities and towns across the country. Its rival Reliance Jio currently has 5G coverage in 2,691 cities around the country.

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