Bharti to invest over $ 2.5 bn next year on capex

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Bharti Airtel has announced its third quarter numbers. The numbers are above expectations. The company's net profit increased by 30% to Rs 1215 crore compared to Rs 933.8 crore in the previous quarter.

Key takeaways from Bharti Airtel concall

• Robust growth for the Bharti as well as Indian Telecom sector in Q3
• Tele density is still lower than 20%
• In Q3, highest addition of mobile connectivity which is a record
• Tariffs in India is lowest in world

Key Developments

 

• For the first time company is coming out with its quarterly results having US GAAP audited accounts along with Indian GAAP
• Board approves transfer of tower business to subsidiary Bharti Infratel
• Board approves commencement of DTH Services through Bharti Telemedia
• To acquire submarine network cable system network i2i for $110 m
• i2i is India-Singapore submarine telecommunication cable
• Bharti to start operation in Srilanka, its first business abroad
• In Q4 - 5 million customers added
• Total customer reached to 34 million out of which 32 million are from mobile business
• In Q4 - 50 billion minutes of total talk happened, out of which 41 billion minutes on mobile network

 Expansion plans

• For DTH - applied for license
• IPTV to be launched in next quarter
• Capex estimated to be in the vicinity of USD 2.5 billion next year
• Significant amount of capex will be for smaller towns and rural areas

 

Q3FY07 Result

 

• Q3 net profit was up 30.1% at Rs 1215 crore versus Rs 933.8 crore, QoQ
• Q3 revenue was up 12.8% at Rs 4913 crore versus Rs 4357 crore
• EBIDTA margin at 40.8%, highest ever
• APRU at Rs 427 versus Rs 438, QoQ
• Minutes of usage in Q3 at 467
• ROE in Q3 - 35.5%
• ROCE in Q3 - 26.3%