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Bharti Airtel Q1 Result | Profit surges 5.5 times YoY to Rs 1,607 crore, revenue up 22%

Bharti Airtel Q1 Result: Average revenue per user, a key measure of performance in the telecom industry, came in at Rs 183 during the April-June period, up from Rs 146 in the year-ago quarter

August 08, 2022 / 06:07 PM IST
 
 
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Bharti Airtel Ltd on August 8 reported a 467 percent year-on-year jump in consolidated net profit at Rs 1,607 crore for the quarter ended June 30, 2022, aided by subscriber additions and a higher revenue per user. On a sequential basis, profit, however, was down 20 percent.

The telecom major's consolidated revenue rose 22 percent YoY to Rs 32,805 crore. On a sequential basis, it was up 4 percent.

Year-on-year growth was aided by a healthy addition of subscribers as well as an improvement in average revenue per user (ARPU), a key measure of performance in the telecom industry, after a round of tariff hikes.

“This has been another solid quarter and we continue to deliver strong and sustained growth at 4.5 percent sequentially,” MD & CEO Gopal Vittal said.

Revenue

The revenue for the India business improved 23.8 percent on year to Rs 23,319 crore.

Within the India business, the revenue from mobile services jumped 27.4 percent on year, while that from Airtel Business was up 15.2 percent.

The customer addition aided a 41.9 percent YoY growth in home business revenue. India’s second-largest telecom operator now has a customer base of 36.2 crore.

The revenue for the Africa business in constant currency increased by 15.3 percent on year and it now has 13.16 crore subscribers in the continent.

Also read: Adani Ports Q1 Result | Profit dips 16% to Rs 1,072 crore; revenue stays flat

Operational highlights

The company added 2 crore 4G customers in the past year, of which 45 lakh were added in the June quarter.

Mobile ARPU increased to Rs 183 during the April-June period from Rs 146 during the year-ago quarter.

“Our enterprise and homes business has strong momentum and delivered strong double-digit growth, improving the diversity of the overall portfolio. Airtel’s strategy of winning with quality customers continues to yield good results with an industry-beating ARPU at Rs 183,” Vittal added.

Mobile data consumption during the quarter was up 16.6 percent on year, with consumption per mobile data at 19.5 GB a month.

The homes business added 14 lakh customers during the quarter, with the digital TV customer base reaching 1.74 crore.

The transactions through Airtel Payments Bank jumped 65 percent on year.

Also read: Power Grid Q1 net profit tanks 37% to Rs 3,801 crore

Margins

The consolidated EBITDA (earnings before interest, tax, depreciation and amortisation) was at Rs 16,604 crore, up 26 percent from the year-ago quarter, while the EBITDA margins improved 150 bps to 50.6 percent.

One basis point is one-hundredth of a percentage point.

The India business managed to improve its EBITDA by 23.8 percent on year to Rs 23,319 crore, with EBITDA margin expanding 170 bps to 51 percent.

The EBITDA margin for the Africa business was up 54 bps on year at 48.8 percent.

Capex

The company incurred a total capex of Rs 6,398 crore during the quarter, with Rs 5,288 crore going into the India business and Rs 1,088 crore in Africa.

The company also procured 19,867.8 MHz of spectrum for Rs 43,040 crore in the recently concluded 5G auction.

“As India gets ready to launch 5G, we are well positioned to raise the bar on innovation and we are also confident of meeting the emerging needs of discerning customers looking for speed, coverage and latency,” Vittal said.

The stock closed 0.18 percent higher at Rs 705 on the National Stock Exchange. It has appreciated 18 percent over the past year but has remained flat for the month.
Gaurav Sharma
first published: Aug 8, 2022 04:44 pm