- Bharti Airtel, Sesa Sterlite, Ranbaxy Laboratories, more: 10 Indian stocks to watchBharti Airtel Q3 profit jumps 115 pct to Rs 610 croreBharti Airtel, Vodafone, Reliance Jio Infocomm, Idea Cellular, others line up to bid for spectrumBharti Airtel shares fall on India voice, Africa margins
The countryís largest telecom operator, Bharti Airtel, on Wednesday posted robust numbers for the October-December quarter, largely in line with Streetís expectations. The big news was that this was the company's first rise in quarterly profit in the last four years as it continues to improve its realised rates, betters average revenue per user, checks churn and increases data revenue.
Net profit during the period increased 19.2% on a sequential basis to R610 crore. Total revenues saw a rise of 2.9% from the preceding quarter to R21,939 crore. On a year-on-year basis, Bharti's rise in net profit was 115%. Revenues rose 13.3%.
The third quarter, which is seasonally strong for mobile operators, saw the company register improvement in almost all its key metrics barring minutes of usage, which saw a dip of 1.1% sequentially mainly due to withdrawal of free minutes. However, Arpu was up 1% at R195 compared to R192 in the preceding quarter. voice realisation per minute was also up 1% sequentially at 37.13 paise. Though Bharti has been withdrawing freebies, discounts and free talk time on its pre-paid vouchers to increase the realisation rate, churn was down at 2.7% during the quarter compared to 3.2% in the preceding quarter.
In another positive, data revenue continued its upward swing. During the quarter, it accounted for 10.3% of the total mobile revenues, up from 9.2% in the previous quarter. The total data customer base increased 8% sequentially and those of 3G by 18%. Data Arpu was up 7% sequentially at R75.
Gopal Vittal, JMD and CEO, India Operations, who has been elevated as the managing director of India and South Asia operations from April 1, said: ďOur efforts over the last 12 months to improve the quality of customer acquisitions have resulted in significant reduction in customer churn. Our focus on superior internet experience has resulted in increased data adoption and usage. Data is now a huge source of revenue growthĒ.
According to a Bharti Airtel official, if the company is able to improve its realisable tariff by around 1 paise each month over the next 7-8 months, it should be totally out