Bharti Airtel posts profit of Rs 854 crore in Q3

By: |
February 04, 2021 4:50 AM

The company’s net loss before the exceptional gains is Rs 298 crore. The Bharti board also gave an in-principle nod for raising of funds of up to Rs 7,500 crore via debt as when appropriate.

Bharti AirtelGopal Vittal, MD and CEO (India & South Asia), Bharti Airtel said, the company now has a "solid spectrum portfoliothat will enable it to continue delivering the best mobile broadband experience in India".

On the back of exceptional gains of Rs 1,152 crore, Bharti Airtel on Wednesday swung back into the black after six quarters, posting a net profit of Rs 854 crore, far ahead of Bloomberg consensus estimates of Rs 158.98 crore.

The company’s net loss before the exceptional gains is Rs 298 crore. The Bharti board also gave an in-principle nod for raising of funds of up to Rs 7,500 crore via debt as when appropriate.

Bharti maintained its surge on average revenue per user (Arpu) and data usage per customer, beating rival Reliance Jio. The subscriber addition, during the quarter, including that of 4G users, continued to be strong.

Bharti beat estimates on the revenue and operating profit front also. Consolidated revenue during the period increased 5.8% sequentially at Rs 26,518 crore while Ebitda at Rs 12,178 crore was 8.2% higher than the preceding quarter. Ebitda margin stood at 45.9% compared to 44.9% in the preceding quarter.

The country’s second biggest telco had posted a net loss of Rs 763 crore in the preceding quarter.

Bharti made an exceptional gain of Rs 4,559.9 crore in Q3FY21 comprising a charge on account of reassessment of contractual/regulatory levies and taxes of Rs 3,159.6 crore and a charge on account of the reassessment of the useful life of certain categories of network assets due to technological advancements and impairment of intangible assets of Rs 1,419.5 crore.

India revenues at Rs 19,007 crore was up 1.34% compared with the preceding quarter while India mobile revenues saw a jump of 6.85% at Rs 14,779 crore.

The company continued to improve its Apru which at Rs 166, apart from beating estimates, was 2.4% higher than the preceding quarter. Minutes of voice usage per customer per month improved 2.2% quarter-on-quarter at 1,027 minutes. Data usage per customer per month was up 2.2% sequentially at 16,766 MB, the strongest in the industry. Total data volume saw a jump of 10.7% q-o-q at 8,453,706 million MB.

The monthly churn, though, has increased to 1.9% against 1.7% in the preceding quarter. This could be due to low-paying 2G users leaving the network.

Of the company’s total 308 million subscribers, 165 million are now 4G users. The 4G subscriber addition saw a 8.5% jump on a sequential basis.

“Despite the unprecedented volatility that we have confronted through the year, we delivered another strong performance this quarter. This consistency in performance was across every part of our portfolio, as reflected in market share growth across all our business segments. The main highlight of the quarter was the 13 million 4G customers we added in our wireless business. As a result, we grew our revenues by 25% over the same period last year and margins expanded,” Gopal Vittal, MD and CEO, India and South Asia, said.

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