BHARTI AIRTEL Q2 RESULTS 2024: NET PROFIT FALLS ON ONE-TIME CHARGE

Bharti Airtel reported its Q2FY24 numbers on Tuesday evening after the market closing. Earlier in the day, Airtel's share price closed at Rs 915, down 1.18%. Let us look at everything in detail about Airtel's Q2FY24 quarter.

About Bharti Airtel

Bharti Airtel is one of India's leading telecommunications companies, founded in 1995 by Sunil Bharti Mittal. It operates in multiple countries, providing mobile, broadband, and digital TV services to millions of customers. Airtel is known for its extensive network coverage and innovative offerings in the telecommunications industry.

Crucial parameters

• 52-week high: Rs 961.55
• 52-week low: Rs 736.20
• Market Cap: Rs 5,13,538.46 crore
• ROE: 0.68

Share price movement

In the last month, Airtel's share returns are flat but on the negative side. In 2023, the shares are up by 12%, lower than the benchmark. In the 5-year time frame, the stock has given exceptional returns with a 235% jump in share price.  

How was Airtel's Q2FY24 numbers?

Let us look at Airtel's September quarter numbers:

Revenue: The company posted quarterly revenues of Rs 3,70,477 crore, up 7.3% compared to the year-ago period. The revenue growth was backed by strong and consistent performance in India operations.

India business posts quarterly revenues of Rs 26,995 crore, double-digit growth of 10.9% YoY. Mobile services India revenues are up 11% YoY, led by continued strong 4G/5G customer additions and an increase in ARPU. Airtel Business revenues were up by 9.5% YoY, backed by synergies from connectivity solutions. Home Business and Digital TV revenue were up by 23.3% and 3.1% YoY, respectively.

EBITDA: The company reported consolidated EBITDA of Rs 19,665 crore. EBITDA margin stood at 53.1%, an improvement of 176 bps YoY. India business posts EBITDA of Rs 14,561 crore and EBITDA margin at 53.9%, up 214 bps YoY. Consolidated EBIT for Q2FY24 stood at Rs 9,929 crore and EBIT margin at 26.8%, up 143 bps YoY.

Profits: Airtel reported a 37% fall in net profit at Rs 1,341 crore for the quarter ending September 30, 2023, due to a one-time charge of Rs 1,570 crore. It reported a consolidated net profit of Rs 2,145 crore in the year-ago period.

ARPU: Average Revenue Per User (APRU) for the second quarter of the current financial year stood at Rs 203. Sequentially, it increased from Rs 200, a growth of 1.5%. In the year-ago period, the ARPU was 190.

Customer base: Airtel's consolidated customer base stood at 54,016 in the September quarter. The major contribution is from India, where the company has a total customer base of 3,89,452, while it has 1,47,666 customers in Africa. The consolidated customer base has increased 2.1% sequentially and 7.7% YoY.

Other Business Update

Home Business: The segment maintained its rapid growth trajectory and delivered a revenue growth of 23.3% YoY, the result of the company’s strategy to harness the growing demand for high-speed and reliable broadband in India. Its focus on digitization and acquiring high-value customers led to an all-time high of 471K customer additions in the quarter to reach a total base of 6.9 million. The company continues to accelerate its rollouts on the back of an innovative asset-light local cable operator partnership model. They are now live in 1,239 cities. It launched Airtel Xstream AirFiber, India’s 1st wireless home Wi-Fi service powered by 5G plus to consumers in Delhi and Mumbai.

Digital TV: It continues to consolidate its strong market position with a 15.7 Mn customer base at the end of the quarter. The company’s focus on market-specific strategy coupled with simplified pricing and convergence portfolio ensured that the business continues to hold its market share.

Management Commentary: "This has been yet another quarter of solid revenue growth and improved margins. Our India revenue continues to gain momentum and grew sequentially by 2.4%. Our consolidated revenue however was impacted by the devaluation of the Nigerian Naira. Consolidated EBITDA margins expanded to 53.1% supported by a strong war on Waste program. We added 7.7 million 4G/5G net adds and exited the quarter with an industry-leading ARPU of 203.” Gopal Vittal, MD