Telecom major Bharti Airtel will announce its Q1 results today. The company’s performance in the quarter ended June 2023 is likely to be strong as compared to the same period last year. However, on a sequential basis, Airtel’s earnings growth may remain muted on the back of foreign exchange losses.
Bharti Airtel Q1 net profit is expected to drop 19.8% on a quarter-on-quarter (QoQ) basis to ₹2,410 crore.
The company’s topline in Q1FY24 is likely to rise 1.70% to ₹36,623 crore, sequentially, as per analysts’ poll by Livemint.
According to ICICI Securities, Bharti Airtel’s Average Revenue Per User (ARPU) is expected to grow 2.9% QoQ to ₹199 aided by premiumisation (2G to 4G, and strong add in postpaid), additional day and price hike in minimum recharge plan.
Bharti Airtel’s subscriber addition is likely to be muted in the range of 2-3 million impacted by pan-India rollout of higher minimum recharge.
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On the operational front, Bharti Airtel’s earnings before interest, taxes, depreciation and amortization (EBITDA) during the first quarter of FY24 is expected to increase by 2.15% QoQ to ₹19,100 crore, while EBITDA margin may remain flat at 51.9%.
Airtel Africa’s performance may be hindered by Nigerian currency devaluation, while underlying growth is likely to be healthy. Bharti Africa’s dollar revenue may fall 4% QoQ to $1,287 million and EBITDA may dip 5.1% QoQ to $622 million due to Nigerian currency’s devaluation, as per ICICI Securities.
Meanwhile, home service segment is expected to show steady growth ahead, while DTH business may be muted. As per analysts, Home services may see revenue growth of 4.2% QoQ and margin growth of 60 bps QoQ.
Bharti is also targeting around ₹50,000 crore market opportunity with its Enterprise offerings including CPaaS, cloud, cybersecurity and data centers as the company expects 80% of corporates will put up 5G within the next 3 years.
At 10:00 am, Bharti Airtel share price was trading 0.59% lower at ₹872.60 apiece on the BSE ahead of Q1 results.
