Emkay Global Financial's research report on Bharti Airtel
Bharti Airtel delivered yet another steady quarter. India wireless ARPU grew 2.8% qoq to Rs183. The company delivered healthy data subscriber additions of 4.8mn, outpacing our estimates of 3mn, supporting 3.4% qoq revenue growth in the India mobile segment. After two successive quarters of double-digit growth, home broadband growth moderated but still grew at a healthy 5.7% qoq, while the enterprise segment’s revenue accelerated to 4.7% qoq. DTH decline continued for the fourth consecutive quarter, down 0.9% qoq. Capex spends will see an increase in FY23 due to advancement of 5G rollout (in-line with management’s guidance at its analyst meet in March 2022). We maintain our consolidated capex estimates of Rs290bn/year (excluding spectrum) till FY25E.
We had tweaked our estimates post the auctions to factor in (if) spectrum purchase, (ii) SUC savings, and (iii) tariff hike in Q4FY23, and maintain those estimates. Capex spends and tariff hike timeline will be keenly watched. Retain Buy with an unchanged TP of Rs850 .
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