- 10 Aug 2022
- ICICIdirect Research
Airtel posts stable performance; resilient marginsBHARTIARTL - 744 Change: -4.85 (-0.65 %)
News: Bharti Airtel's Q1FY23 performance was marked by residual tariff hike benefits flowing in the wireless business revenues and driving the margins expansion (only telco to expand margins QoQ). Consolidated topline came in at Rs 32,805 crore, up 4.1% QoQ and 22.2% YoY with India wireless revenues up 3.4% QoQ (up 27.4% YoY) at Rs 18220 crore, led by residual pass through of tariff hike driving ARPU, which came in at Rs 183, up 2.8% QoQ. On the other segment of India business, homes services (broadband) revenues were up 5.7% QoQ at Rs 926 crore, Airtel business (enterprise) revenues were up 4.4% QoQ at Rs 4366 crore. Overall margins were at 50.4%, down 53 bps QoQ mainly owing to lower Africa margins which was at 48.8%, down 110 bps QoQ. India wireless margins was at 51.2% (up 55 bps QoQ). Overall Indian margin was up 13 bps QoQ at 51%.
View: Key highlight was expansion in Indian wireless margins (it was the only telco to do so in Q1FY23). Airtel continues to report a stable performance on Indian wireless business front with healthy KPIs in terms of subscribers’ stickiness and margins. The management reiterated its stance to raise tariff ahead.