Net profit of Bharti Airtel may fall 18.2 percent at Rs 1050 crore in April-June quarter from Rs 1290.3 crore in last quarter. According to a CNBC-TV18 poll, rupee revenue may rise 2.14 percent at Rs 25495 crore against Rs 24959.7 crore in quarter-ago period.
During the quarter, the telecom major's EBITDA may stand at Rs 9250 crore compared to Rs 9188.3 crore while EBITDA margin is seen at 36.3 percent compared to 36.8 percent on sequential basis.
Bharti Airtel's performance is expected to be soft with India wireless doing well. However, currency pressures in Africa may damp consolidated performance. In Q1 consolidated revenue growth is expected at 2.2 percent driven by 4.2 percent India wireless revenue offset by 2.5 percent decline in Africa.
India wireless business
In Q1 revenue may grow 4.2 percent at Rs 15268 crore versus Rs 14652.5 crore (QoQ). Q1 EBITDA is likely to stand at Rs 6110 crore against Rs 5847.4 crore (QoQ). During the period, volume is seen up 2.2 percent at 315 billion min against 308 (billion min) QoQ. Average revenue is likely to be up 1.3 percent at RS 196.5 against Rs 194 (QoQ). Voice revenue per minute (RPM) may be at 33.6 paise in Q1 against 33.25 paise.
Bharti's India wireless margins have improved from 35 percent to 40 percent in the last eight quarters. Analysts polled by CNBC-TV18 expect volume growth at around 2-2.5 percent while voice ROM may improve 1 percent (QoQ) after declining for seven straight quarters.
Data volume growth has been around 70 percent (YoY) for three straight quarters. If data volume growth falters it will be a negative considering accelerated investments made by it in 4G. Data RPMS may continue to be under pressure.
Africa business
Its revenue may fall 2.3 percent at Rs 6300 crore from Rs 6451.1 crore (QoQ). EBITDA in Q1 at Rs 1350 crore against Rs 1423.3 crore while EBITDA margin at 21.43 percent versus 22.06 percent (QoQ).
Devaluation of the Nigeria naira and overall economic weakness may have some impact on reported Africa numbers for Bharti. There was a sharp 41 percent depreciation in Nigerian currency Naira towards end of Q1. Nigeria is a large market for Bharti in Africa. Africa margins have improved in the last 2-4 quarters from 20.2 percent in Q2 to 22.06 percent in Q4.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
