The net profit is lower than the average estimates.
Earning Highlights Q3FY23:
According to the management, the Company strengthened its leadership position in Postpaid segment with a customer base of 32.5 Mn (including IoT). It continues to garner strong share of the 4G customers in the market and added 21.2 Mn 4G data customers to its network over last year, an increase of 10.8% YoY. ARPU continues to be the best in industry and average data usage per data customer at 20.3GBs/month.
It rolled out additional ~8.6k towers in the quarter to further strengthen its network coverage and provide ubiquitous connectivity.
Several initiatives have also been undertaken to improve Network quality – leveraging digital tools/probes to monitor and improve customer experience.
Homes business segment continues its strong momentum and delivers a revenue growth of 29.8% YoY, an outcome of continued acceleration on the back of growing need for reliable and consistent broadband in India. It added 432 K customers during the quarter to reach to a total base of 5.6 Mn. It continues to accelerate our rollouts on the back of innovative asset light local cable operator spartnership model, it is now live in 1140 cities through this model.
Valuation & View:
At the CMP of Rs. 785, the stock is trading at annualised P/E multiple of 59 times with the annualised EPS of Rs. 13.30, which is fairly valued. Hence, investor should avoid buying at current price.
Globe Capital Market Limited (“GCML”) is a Stock Broker registered with BSE, NSE and MSEI in all the major segments viz. Capital, F & O and CDS segments. GCML is also a Depository Participant and registered with both the Depositories viz. CDSL and NSDL. Further, GCML is a SEBI registered Portfolio Manager. GCML includes subsidiaries, group and associate companies, promoters, directors, employees and affiliates.
Globe Commodities Limited, Globe Derivatives and Securities Limited & Globe Fincap Limited are subsidiaries of GCML. Rolex Finvest Private Limited, A to Z Consultants Private Limited, A to Z Venture Capital Limited, M. Agarwal Stock Brokers Private Limited, A M Share Brokers Private Limited, Shri Adinath Advertising Company Pvt. Ltd., Orient Land base Private Limited, Bolt Synthetic Private Limited, Price ponder Private Limited and Lakshya Impex Private Limited are associates of GCML. Globe Comex International DMCC is step down subsidiary of GCML.
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