Bharti Airtel Q3 net profit jumps 54%, ARPU at Rs 208: Daily Market Update - 6 Feb 2024 | Globe Capital Market LTD.
Bharti Airtel Q3 net profit jumps 54%, ARPU at Rs 208: Daily Market Update – 6 Feb 2024

Bharti Airtel on February 5 reported a consolidated net profit of Rs 2,442.2 crore for the October-December quarter, growing 54 percent from the same quarter a year ago. Its revenue came in at Rs 38,339 crore, up 6.3 percent from Rs 36,062 crore in the year-ago period, Bharti Airtel said in an exchange filing. The company said its mobile average revenue per user per month (ARPU) was at Rs 208 - better than estimates - and up nearly 8 percent against Rs 193 in the same quarter last year. The ARPU was driven by "consistent strategy of acquiring high-value customers and improved realizations.

Overview and Outlook

Global Stock Market Today

  • US equity markets settled lower in range 0.2% to 0.71%.
  • European equity markets ended on a flat note.
  • Majority of Asian markets are trading in red.
  • GIFT Nifty is little changed, Nifty futures are likely to open around 21800 levels (as on 8:30AM).


News highlights from across the globe

  • Majority of Asian indices declined following Wall Street as strong US economic data further reduced expectations for a swift Federal Reserve pivot to monetary easing. Treasuries gained after another slump on Monday.
  • Brent crude was trading 0.08% higher at $78.05 a barrel.


Important news updates from the domestic front

  • Bharti Airtel Q3 Earnings FY24 (Consolidated, QoQ) – Revenue up 2.3% at Rs 37,899.5 crore vs Rs 37,043.8 crore. Ebitda up 1.54% at Rs 19,814.8 crore vs Rs 19,513.7 crore. Margin narrowed by 39 bps to 52.28% vs 52.67%. Net profit up 37.41% at Rs 2,876.4 crore vs Rs 2,093.2 crore
  • Tata Chemicals Q3 Earnings FY24 (Consolidated, YoY) – Revenue down 10.1% at Rs 3,730 crore vs Rs 4,148 crore. Ebitda is down 41.2% at Rs 542 crore vs Rs 922 crore. Margin narrowed by 769 bps to 14.5% vs 22.2%. Net profit down 54.4% at Rs 194 crore vs Rs 425 crore.
  • Ashok Leyland Q3 Earnings FY24 (Consolidated, YoY) – Revenue up 6.66% at Rs 11,092.7 crore vs Rs 10,399.74 crore. Ebitda up 45.87% at Rs 1,961.28 crore vs Rs 1,344.47 crore. Margin expanded by 475 bps to 17.68% vs 12.92%. Net profit up 73.35% at Rs 608.85 crore vs Rs 351.21 crore.
  • One 97 Communication has denied reports of investigation or violation of foreign exchange rules by the company or its associate Paytm Payments Bank.
  • Jio Financial Services has denied being in talks to acquire the crisis-hit Paytm wallet of One 97 Communications.
  • Adani Total Gas, INOX India have entered into a mutual support agreement under which ATGL and INOXCVA will mutually accord a “preferred partner” status for the delivery of LNG and LCNG equipment.
  • Pidilite Industries announced the inauguration of a new manufacturing facility in Sandila, near Lucknow, for its tile adhesive brand, Roff.
  • Triveni Turbine incorporated a wholly-owned subsidiary, ‘Triveni Turbines Americas Inc.’ in Texas, USA.
  • JK Cements approved the merger of units Acro Paints and JK Maxx.


Nifty Overview & Outlook

The benchmark Nifty index settled lower at 21771 levels, down 82 points from its previous closing values after a highly volatile trading session.

The broader markets outperformed the benchmark as Small cap & Mid cap index ended on a flat to positive note against 0.38% decline of frontline index resultant, poor market breadth.

Performance on the sectoral front was mix. Amongst them, Nifty Auto, Pharma & Healthcare index were the top gainers, up in range 1% to 1.8%. On the other hand, Nifty Consumer Durable, FMCG and Financial Services indices witnessed some selling pressure, down in range 0.5% to 1%.

Going ahead, we expect Nifty index to trade with sideways to positive bias till it is trading above 21600 levels on closing basis and suggest traders to maintain buy on dip trading strategy till it is trading above the said levels.


Derivatives Overview & Outlook

Yesterday, short buildup was seen in Nifty futures and Finnifty futures with increase in open interest by 0.6% and 29.9% respectively, whereas long unwinding was seen in Banknifty futures with decrease in open interest by 1.6%.

On the sectoral front, long buildup was observed in Power, Pharma and Automobile stocks, whereas short buildup was seen in Chemical, FMCG and Capital Goods stocks.

On the options front, call writing was seen at multiple strikes and maximum positions are at 21000 PE closely followed by 21500 PE and 22000 CE.


Institutional Trading Activity

Yesterday, FIIs bought stocks worth Rs 519 Cr in the cash segment, sold stocks futures worth Rs 524 Cr and bought index future worth Rs 1308 Cr. DIIs were net sellers in the cash segment to the tune of Rs 1189 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 22040-22150; Supports 21730-21650

Banknifty – Resistances 46400-46670; Supports 45675-45400

Finnifty – Resistances 20580-20700; Supports 20230-20090






Globe Capital Market Limited (“GCML”) is a Stock Broker registered with BSE, NSE, MCX, NCDEX, ICEX 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 and Research Analyst. 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 Landbase Private Limited, Bolt Synthetic Private Limited, Price ponder Private Limited and Lakshya Impex Private Limited  are associates of GCML.

This report has been prepared by GCML and published in accordance with the provisions of Regulation 19 of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014, for use by the recipient as information only and is not for general circulation or public distribution. This report is not to be altered, transmitted, reproduced, copied, redistributed, uploaded, published or made available to others, in any form, in whole or in part, for any purpose without prior written permission from GCML. The projections and the forecasts described in this report are based on estimates and assumptions and are inherently subject to significant uncertainties and contingencies. Projections and forecasts are necessarily speculative in nature, and it can be expected that one or more of the estimates on which the projections are forecasts were based may not materialize or may vary significantly from actual results and such variations will likely increase over the period of time. This report should not be construed as an offer to sell or the solicitation of an offer to buy, purchase or subscribe to any securities, and neither this report nor anything contained therein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. It does not constitute a personal recommendation or take into account the particular investment objective, financial situation or needs of any individual in particular. The research analysts of GCML have adhered to the code of conduct under Regulation 24 (2) of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014. The recipients of this report must make their own investment decisions, based on their own investment objectives, financial situation or needs and other factors. The recipients should consider and independently evaluate whether it is suitable for its/ his/ her/their particular circumstances and if necessary, seek professional / financial advice as there is substantial risk of loss. GCML does not take any responsibility thereof.

Any such recipient shall be responsible for conducting his/her/its/their own investigation and analysis of the information contained or referred to in this report and of evaluating the merits and risks involved in securities forming the subject matter of this report. The price and value of the investment referred to in this report and income from them may go up as well as down, and investors may realize profit/loss on their investments. Past performance is not a guide for future performance. Actual results may differ materially from those set forth in the projection.

This report has been prepared by GCML based on the information available in the public domain and other public sources believed to be reliable. Though utmost care has been taken to ensure its accuracy and completeness, no representation or warranty, express or implied is made by GCML that such information is accurate or complete and/or is independently verified. The contents of this report represent the assumptions and projections of GCML and GCML does not guarantee the accuracy or reliability of any projection, assurances or advice made herein. Nothing in this report constitutes investment, legal, accounting and/or tax advice or a representation that any investment or strategy is suitable or appropriate to recipients’ specific circumstances.

Since GCML or its associates are engaged in various financial activities, they might have financial interest or beneficial ownership in various companies including subject company/companies mentioned in the report. GCML or its associates have not received any compensation for investment banking or merchant banking from the subject company in the past 12 months.  GCML or its associates might have received any compensation including brokerage services and for products or services other than investment banking or merchant banking from the subject company in the past 12 months. It is confirmed that GCML or research analyst or its associates have not managed or co-managed public offering of securities for the subject company in the past 12 months.

Research analyst or GCML or its relatives’/associates’ have no material conflict of interest at the time of publication of this report. Neither research analyst nor GCML are engaged in market making activity for the subject company. It is confirmed that research analysts do not serve as an officer, director or employee of the subject company. It is also confirmed that research analyst have not received any compensation from the subject company in the past 12 months. GCML or its associates have not received any compensation or other benefits from the Subject Company or third party in connection with the research report.

No material disciplinary action has been taken on GCML by any regulatory authority impacting Equity Research Analysis activities.

The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. This information is subject to change, as per applicable law, without any prior notice. GCML reserves the right to make modifications and alternations to this statement, as may be required, from time to time.

Research analyst or GCML or its relatives’/associates’ do not have actual/beneficial ownership of 1% or more in securities of the subject company, at the end of the month immediately preceding the date of publication of the document.

Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.