Bharti Q2 net seen down 24%, ARPU & volume likely to be low

Bharti Airtel is expected to announce tepid July-September quarter results. Its net profit may slip 24 percent to Rs 1174 crore in Q2FY16 compared to Rs 1554.3 crore in year-ago period. According to CNBC-TV18 poll, its revenue is likely to be flat at Rs 23743 crore, up 0.3 percent from Rs 23670.9 crore in corresponding quarter last fiscal.

EBITDA, also, may fall to Rs 8176 crore in Q2 from Rs 8261.7 crore while EBITDA margin is likely to be at 34.43 percent versus 34.9 percent year-on-year.

As per CNBC-TV18 poll, average revenue per user (ARPU) may drop 1.5 percent. Volumes may fall 2 percent at 285 billion minutes in Q2 from 290.8 billion minutes. Voice revenue per minute (RPM) may be at 35 paise against 34.93 paise (Y-o-Y)

Analysts polled by CNBC-TV18 poll say that Q2 is a seasonally weak quarter which will affect India business. India EBITDA margins may decline due to 4G roll-out costs and lack of increase in voice RPM. Revenue from its Indian business is likely to fetch Rs 13870 crore in Q2, up 0.5 percent from Rs 13798.7 crore. EBITDA from this segment may be at Rs 5302 crore against Rs 5348.9 crore (Y-o-Y). EBITDA margin is likely to be at 38.22 percent versus 38.7 percent (Y-o-Y).