Bharti Airtel | The company reported consolidated profit at Rs 759.2 crore in Q4FY21 against Rs 853.6 crore in Q3FY21, revenue fell to Rs 25,747.3 crore from Rs 26,517.8 crore QoQ.
Telecom major Bharti Airtel on May 17 reported a net profit of Rs 759.2 crore for the quarter ended March 31, 2021 (Q4FY21). The firm had posted a loss of Rs 5,237 crore in the year-ago period. In the December quarter, profit stood at Rs 853.6 crore.
The company's fourth quarter total revenue came in Rs 25,747 crore, up 17.6 percent year-on-year (YoY) on a comparable basis and 11.9 percent YoY on a reported basis.
Its earnings before interest, tax, depreciation and amortisation (EBITDA) stood at Rs 12,583 crore, up 28.9 percent YoY and EBITDA margin was at 48.9 percent, an expansion of 647 basis points (bps).
EBIT of the company came in at Rs 5,048 crore, up 75.5 percent YoY and EBIT margin at 19.6 percent, an expansion of 711 bps.
Here are the highlights from Bharti Airtel's Q4 FY21 earnings call as compiled by Narnolia Financial Advisors:
According to the management of Bharti Airtel, 20 percent of customers contribute to 80 percent of the share. The company is focusing on tapping the rest 80 percent of customers for which it is trying to insourcing the entire sales force which was previously outsourced to build digital channels and indulging in adjacent areas.
During the quarter the company launched Airtel Ads, Airtel IoT and Airtel Safe Pay. It has a dedicated channel for high-value homes. Total high-value homes in India are around 50 million and the company is in relation with around 30 million providing at least one service.
Within the country, Bharti Airtel has 33 percent of the share of the liberalized spectrum which is the strongest holding in India which can be converted to 5G over time. It has also accelerated coverage footprint in this quarter by adding 8300 sites, the management said.
The company's ARPU grew from Rs 146 to 148 which is the highest in the country and is mainly on account of opening up of lockdown, customer additions and customer mix. Management expects growth in ARPU going ahead. It raised USD 12 billion in FY21 and refinanced high-cost debt with lower rates, the company said.
Average overall debt breakup:
DoT and AGR debt is 56 percent of the total debt while accounting lease contributes to 19 percent. Debt has increased however company expects it to go down in years coming forward. The company has successfully monetized assets including Airtel Money and tower in Africa and also monetized unutilized 800 MHz spectrum, Airtel added.
The company has added around 16000 towers in H2FY21. Management guided capex will be same as of FY21 mainly on the back of transport capex for runout of 5G and capex on broadband business and 4G radio capex. Operating expense increased on account of massive roll out of network, the company management said.
EBITDA Margin on mobile business is around 45 percent. Management is hoping to reach 60 percent in the coming years.
The company is showing sequential growth of 15-20 percent every quarter and expects to show growth in FY22.
The company has 200 million active users. It is on road to profitability and expects to achieve it in FY22, the company said.
ARPU of Rs 684 dropped due to a pricing change done in Q3. Management guided sequential increase in home passes and in a couple of years it expects 20-25 million home passes.
The company has a market share of 22 percent as of December 2019 and expects to it grow to 27 percent. Management sees strong upside in DTH business in FY22. Management has assured that promoter has no intension of any block sale or selling of any stake.