Bharti Airtel Ltd. - Q3 FY23 Earning Highlights | Globe Capital Market LTD.
Bharti Airtel Ltd. – Q3 FY23 Earning Highlights

The net profit is lower than the average estimates.

Q3 FY23 Earning Overview and Verdict
Rs. 785
Bottomline less than the estimates

Earning Highlights Q3FY23:

  • The Company reported a sharp 92% year-on-year (YoY) rise in consolidated net profit for the December quarter to Rs 1,588 crore.
  • Revenue from operations increased by 20% YoY to Rs 35,804 crore. Sequentially, the topline grew 3.7%, while the bottomline dropped by a sharp 47%.
  • Consolidated EBITDA at Rs 18,601 crore; EBITDA margin at 52.0%, improvement of 205 bps YoY.
  • Overall customer base stands at ~511 million across 16 countries.
  • Capex for the quarter at Rs 9,314 crore.
  • Industry leading operational indicators showcasing strong business momentum driven by execution
  • 4G data customers up by 21.2 Mn YoY & 6.4 Mn QoQ, 65% of overall mobile customer base
  • Mobile ARPU increased to Rs 193 in Q3’23 vs Rs 163 in Q3’22
  • Mobile data consumption up by 22.5% YoY, consumption per customer at 20.3 GB per month
  • Homes business continues to bolster its presence with 432 K customer net additions in Q3’23
  • Digital TV customer base at 16 Mn in Q3’23, healthy growth over Q2’23

Management Takeaways:

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.


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