Bharti Airtel's Q2 PAT seen down 9% at Rs 1110 cr

ALSO READ News and Notices about Bharti Airtel See interviews with Bharti Airtel Management See what other Experts & Brokerages are saying about Bharti Airtel See previous Results of Bharti Airtel Bharti Airtel BSE | NSE 31/05/12 Are Mutual Funds betting on Bharti Airtel?

Bharti Airtel is to announce its second quarter results. According to CNBC-TV18's estimates, the company's consolidated Q2 revenues are seen up 2.75% at Rs 17450 crore versus Rs 16982.8 crore.

Its EBITDA is seen up at Rs 5950 crore versus Rs 5705.9 crore.

Its EBITDA% at 34.09% versus 33.59%.

The company's PAT seen down 8.65% at Rs 1110 crore versus Rs 1215.2 crore.

India and SA Wireless Rev

 

Rev up 1.1% at Rs 9950 cr vs Rs 9840.4 cr

EBITDA at Rs 3450 cr vs Rs 3361.5 cr

EBITDA % at 34.7% vs 34.16%                       

 

Operational parameters

·          ARPU dn 2% at 186 vs 190

·          MOU dn 2.5% at 434 vs 445

·          RPM at 43p vs 42.8p

·          Subscriber up 2.2% at 173m vs 169.187m 

Alert -Idea Q2 - traffic growth contraction at 2.2% was disappointing, but RPMs growth of 4.2% a big positive, so Question now is - has the tariff increase and RPM improvement impacted volumes?  

 

Africa

Rev up 4.5% at Rs 4575 cr vs Rs 4378.3 cr

EBITDA at Rs 1260 cr vs 1170 cr

EBITDA % at 27.5% vs 26.7%

 

Q2 highlights - Seasonally weak qtr + forex loss to hit profits

India and SA Wireless growth expected to be subdued due to seasonality

·          Rev growth seen at 1.1% (Idea was at 2.2%)

·          Q2 generally sees decline in MOUs and lower subscriber growth (Q1 at 4.3%)

·          Margin expansion seen driven by lower subscriber acquisitions costs.

Bharti Africa: Rev growth at 4.5% a slowdown from the 6.0% growth delivered in Q1.

·          This is driven by slower net add assumptions (due to SIM-registration in several markets) and some pricing activity in Nigeria.

·          80bp  margin improvement to 27.5%.

Forex loss likely at $100-120m (~570 cr) (Re depreciated 9% vs $, 13% versus the JPY, African currencies depreciated ~6%vs $) - Foreign currency debt at $11b

 

Key things to watch

·          Subscriber reaction to tariff increases and potential for further increases (has recently increased its prepaid tariffs (both on-net and off-net) by c20% for new subscribers in Mumbai & Maharashtra.

·          Foreign exchange exposure management.

·          3G uptake (Q2 not expected to be significant, but Q3 expected to be strong due to festive season)

 

More tariff increases - now 20% increase in Mumbai and Maharasthra (after Tariffs hiked in key 6 circles (out of 22 circles) in Q1.  

·          Recently increased its prepaid tariffs (both on-net and off-net) by c20% for new subscribers in Mumbai & Maharashtra (contribute ~8% of rev)

·          Per-second tariffs upped from Rs 0.01/sec to Rs 0.02/sec and per minute tariffs upped from Rs 0.50/min to Rs 0.60/min. Also validity of certain tariff plans has been reduced from 1 yr to 6M.