- 01 Nov 2022
- ICICIdirect Research
Bharti Airtel reports healthy operating performanceBHARTIARTL - 749 Change: 5.40 (0.73 %)
Bharti Airtel’s Q2FY23 performance was healthy with beat on India ARPUs and margins. Consolidated topline came in at Rs 34,527 crore, up 5.2% QoQ and 21.9% YoY. India wireless revenues were up 4% QoQ (up 24.8% YoY) at Rs 18958 crore, led by ARPU, which came in at Rs 190, up 3.7% QoQ, driven by higher no. of days and subscriber mix improvement. Overall sub base saw a modest addition of 0.5 mn QoQ at 327. 8 mn. It witnessed healthy 4G Net adds of ~5 mn during the quarter, with 4G data sub base at 210.3 mn. The post-paid subscriber base also saw robust addition of ~283k subscribers at 18.3 mn. The India non-wireless segment also posted strong growth. Consolidated EBITDA came in at Rs 17594 crore, up 6.4% QoQ, with margins of 51%, up 57 bps QoQ led by India wireless margins which were at 52.4% (up 116 bps QoQ), driven by lower SUC charges after new spectrum purchase
Airtel continues to report healthy performance on Indian wireless business front with resilient and industry leading KPIs in terms of India postpaid/4G subscribers, ARPUs and margins. We remain constructive on Airtel given the disproportionate benefits of market consolidation in Telecom Sector. Management commentary on overall growth drivers would be key monitorable ahead.