Telecom major Bharti Airtel will release its June quarter scorecard on August 3 which is expected to show COVID-related stress. Sequentially, the numbers may come on a softer side.
Apart from the numbers, investors will await any update on tariff hikes and the 5G rollout. The company's capex plans, if any, will also be keenly observed.
Brokerage firms are of the view that the company's Q1 scorecard may show signs of pressure with overall revenue and ARPU shrinking.
Brokerage firm Emkay Global Financial Services sees a 1.5 percent quarter-on-quarter (QoQ) rise in Airtel's Q1 net sales. However, PAT may decline as much as 58 percent QoQ, Emkay said.
"India wireless revenues and ARPU are anticipated to stay stable sequentially. Mix improvement will get offset by free recharges and moderation in data subscriber adds due to the second wave of COVID-19," Emkay said.
Emkay believes data volumes and minutes on network may rise 4 percent and 3 percent QoQ, respectively.
"The African business should see a rebound in revenues and profitability, with the resumption of enrolment of new subscribers in Nigeria from April 2021 while it would get impacted by currency devaluation," Emkay said.
Kotak Institutional Equities in a report said Bharti Airtel's India wireless revenues to moderate to Rs 13,900 crore and EBITDA to decline 4 percent QoQ and a 3 percent moderation in ARPUs to Rs 145 per month, reflecting the impact of lockdowns.
"Among the other business segments, we assume (1) 4 percent QoQ decline for the Africa business, (2) 1-2 percent QoQ growth in revenues for enterprise and home broadband segments and (3) 2 percent decline for the DTH business," Kotak said.
Brokerage firm Motilal Oswal Financial Services expects Airtel's ARPU to decline by 2 percent QoQ in Q1FY22.
Motilal expects the company's Indian mobile subscribers to remain flat sequentially. Indian wireless revenue may also remain flat QoQ while there may be a 2 percent revenue growth in the enterprise business.
On the other hand, Edelweiss Research sees a 3.9 percent QoQ revenue growth with a 4.8 percent QoQ growth for the India business and 1.4 percent QoQ growth for the Africa business.
On a consolidated basis, Edelweiss expects the EBITDA margin of Airtel to remain flat QoQ at 48.1 percent.Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.