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Last Updated : Jul 30, 2020 10:02 AM IST | Source: Moneycontrol.com

Bharti Airtel shares gain despite Q1 loss of Rs 15,933 cr; CLSA, Citi, Jefferies maintain buy

The company reported a consolidated loss of Rs 15,933.1 crore for the quarter-ended June, which widened considerably from Rs 5,237 crore in March quarter and Rs 2,866 crore in Q1 FY20.

 
 
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Bharti Airtel share price gained 2 percent at open on July 30, a day after the company declared its June quarter numbers.

Telecom major Bharti Airtel on July 29 reported a consolidated loss of Rs 15,933.1 crore for the quarter-ended June, which widened considerably from Rs 5,237 crore in March quarter and Rs 2,866 crore in Q1 FY20.

The company said net loss (before exceptional items) stood at Rs 436 crore. "The net exceptional charge of Rs 11,745.7 crore during the quarter-ended June comprises of a charge on account of incremental provision and interest on licence fee and spectrum usage charges (adjusted for gross revenue provision) of Rs 10,744.4 crore and net charge pertaining to re-assessment of levies of Rs 1,001.3 crore," it said.

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Consolidated revenue from operations grew 0.9 percent sequentially to Rs 23,938.7 crore, which was slightly ahead of a CNBC-TV18 analysts poll of Rs 23,720 crore. On year-on-year basis, revenue growth stood at 15.4 percent.

During the quarter, Airtel and Carlyle entered into an agreement whereby Carlyle will acquire about 25 percent stake in Airtel's Data Centre business at a valuation of $1.2 billion.

The management said digital TV revenue grew 9.3 percent YoY on the back of strong customer additions growth of 5.1 percent YoY to 16.8 million. "The rollout of new tariff order helped Airtel in improving its market share and revenue growth."

The stock price has gained over 72 percent in the last 1 year and was trading at Rs 577.10, up Rs 10.75, or 1.90 percent at 09:19 hours. It has touched an intraday high of Rs 579.00 and an intraday low of Rs 571.70. It was also one of the most active stocks on NSE in terms of volumes with 56,25,468 shares being traded.

CLSA has maintained a buy on the stock with target of Rs 715 per share. It said that revenue was ahead of estimates led by India mobile revenue and EBITDA was in line but loss beat estimates on additional provisions for AGR dues, according to a CNBC-TV18 report.

Citi has also maintained a buy on the share with target of Rs 690 per share. The company posted another impressive performance despite challenges, it said.

Global research firm Jefferies has maintained a buy recommendation on the stock with target of Rs 670 per share. It said that the results surprised positively with India Mobile ARPUs rising 2 percent QoQ.

Ashish Chaturmohta Head of Technicals and Derivatives, Sanctum Wealth Management is of the view that the stock has seen a multi-year consolidation between Rs 220 and Rs 545 odd levels. It has formed a base and has also seen a breakout on the upside.

As long as the stock holds the support level of the recent consolidation low Rs 530, the stock is likely to see a breakout on the upside and the next resistance level is seen at Rs 690-700, he added.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
First Published on Jul 30, 2020 09:55 am
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