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Bharti Airtel Q1 Results: Profit zooms 467% YoY to Rs 1,607 crore; ARPU improves to Rs 183 – The Economic Times

Telecom major today reported a 466.8 per cent YoY jump in its Q1 profit at Rs 1,607 crore against Rs 284 crore in the year-ago period. The numbers, however, missed the analyst estimate of Rs 2,451 crore.

The company’s consolidated revenue was up 22.2 per cent YoY to Rs 32,805 crore.

Airtel’s ARPU or average revenue per user for the quarter came in at Rs 183 compared to Rs 146 in Q1’22. This is an outcome of the company’s focus on acquiring and retaining quality customers and a relentless obsession with customer experience, the company said.

EBITDA margin during the quarter stood at 50.6 per cent, up 150 bps YoY.

Mobile revenues grew by 27.4% YoY on account of increase in ARPU and strong 4G customer additions during the year.

“We continue to garner strong share of the 4G customers in the market and added 20.8 million 4G customers to its network over last year, an increase of 11.3% YoY. ARPU continues to be the best in industry, average data usage per mobile data customer at 19.5 GBs/month and voice usage per customer at 1,104 mins /month,”

said in a BSE filing.

The telco’s 4G customers are up by 20.8 million YoY and 4.5 million QoQ. “This has been another solid quarter. We continue to deliver strong and sustained growth at 4.5% sequentially. EBITDA margins are now at 50.6%. Our enterprise and homes business has strong momentum and delivered strong double-digit growth, improving the diversity of the overall portfolio. Airtel’s strategy of winning with quality customers continues to yield good results with an industry-beating ARPU at Rs 183,” Airtel MD and CEO Gopal Vittal said.

The Net Debt-EBITDA ratio and including the impact of leases as of June 30, 2022, stood at 2.52 times compared to 3.03 times as of June 30, 2021. “We continue to optimize the capital structure by judiciously allocating capital across our business to strengthen the balance sheet,” the company said.

Airtel’s home business segment’s revenue was boosted by 41.9% YoY as it added 1.4 million customers to reach a total base of 4.79 million customers.

Digital TV’s customer base stood at 17.4 million at the end of Q1.

During the quarter, Airtel rolled out additional 8K towers to optimally augment coverage and provide a differentiated network experience.

Airtel’s operating margin also improved to 23.6 per cent against 19.6 per cent in the year-ago period. Sequentially, the margin, however, dipped marginally from 23.7 per cent in the March quarter of FY22.

The debt-equity ratio improved to 1.28 in Q1 from 1.36 in the March quarter.

On the recently-held 5G auction in which it acquired 19,867.8 MHz spectrum, Airtel said it now has the widest mobile broadband footprint across the country, making the company well-positioned to usher in the 5G revolution in India. “The acquisition of this vast amount of spectrum strapped on to an already industry best existing pool of spectrum will mean that we would not need to spend any material sum on the spectrum for many years to come. Specifically, on the 700 MHz band, we have enough mid-band spectrum to cater to 5G roll out and hence have been judicious on acquiring very high-cost sub-GHz spectrum,” it said.

Airtel shares ended flat at Rs 704.35 ahead of the release of quarterly figures.