Bharti Infratel will release its March quarter scorecard on April 23 wherein it is expected to release mixed sets of numbers.
While the numbers will show how the company fared during the said quarter, the market will closely watch for any updates on the Indus Towers merger completion.
Brokerage firm Motilal Oswal expects the company's tenancy or rental rates to remain flat quarter-on-quarter (QoQ).
The estimates of Motilal show energy EBITDA will grow at 35 percent on a lower base but the average sharing factor may remain flat.
Overall EBITDA and revenue from operations may come either flat or see a marginal YoY uptick, Motilal Oswal said.
Brokerage firm Kotak Securities expects a marginal sequential uptick in net tenancies as well as service rentals, which may translate into a 1.3 percent QoQ increase in service revenues.
"Higher service revenues along with some sequential expansion in energy spreads (still down materially on a YoY basis) should drive a 5.8 percent QoQ increase in EBITDA," Kotak said.
YoY EBITDA is not comparable due to IndAS implementation.
As per Dolat Capital, due to the annuity model, Bharti Infratel will be the least impacted by COVID-19. The brokerage expects core rental revenue to increase by 6.2 percent YoY but will be partly offset by the decline in energy reimbursements.
Brokerage firm Emkay Global expects Bharti Infratel may see a marginal improvement in net tenancy adds on a sequential basis.
"We estimate consolidated tower additions of 544 and a net tenancy increase of 1,207 against 744 in Q3, resulting in a tenancy ratio of 1.85 times, flat QoQ," said Emkay.
As per Emkay, average rental (excluding exit penalties) is expected to remain flat QoQ due to the impact of prior-period exits. Service revenue EBITDA margins are expected to remain flat QoQ.
"Energy reimbursements are projected to decline by 2 percent QoQ, driven by lower diesel prices. Energy margins are expected to improve to 5.8 percent from 1.6 percent in Q3FY20. The higher energy margin assumption reflects annual margin guidance of 3 percent. However, it has remained volatile over the past few quarters," said Emkay.
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