New Delhi-based telecom giant Bharti Airtel is poised to report its first-quarter results, with analysts largely projecting robust financial performance. Brokerage firms anticipate a significant year-on-year (YoY) growth in net profit, ranging between 36 and 45 percent, alongside a healthy 14-15 percent increase in net sales for the June quarter.
Key Performance Indicators Expected
According to various analyst reports, several key metrics will be under scrutiny:
- Net Profit: Forecasts for net profit vary, with Elara Securities predicting a 36.4 percent YoY rise to Rs 7,889 crore, while Centrum Broking expects a 45.2 percent surge to Rs 8,638.60 crore. Nuvama projects a 42.7 percent increase to Rs 8,488 crore, and Axis Securities sees profit reaching Rs 9,389 crore.
- Net Sales: Sales are expected to grow between 14.4 percent (Elara) and 15.6 percent (Centrum), with figures ranging from Rs 56,582 crore to Rs 57,468 crore across different brokerages.
- Subscriber Additions: The company is anticipated to add 50-60 lakh new subscribers sequentially, with Centrum specifically forecasting 50 lakh additions, bringing the total to 37.80 crore.
- Average Revenue Per User (ARPU): Analysts expect a slight quarter-on-quarter (QoQ) improvement in ARPU, driven by the ongoing migration of 2G subscribers to 4G and a higher number of days in the quarter. Centrum projects a 1.5 percent QoQ rise to Rs 261 per month, while Elara sees ARPU at Rs 258.
Operational Performance and Future Outlook
Beyond the headline numbers, investors will closely monitor Bharti Airtel's business vertical performance, the trajectory of its ARPU trends, and the progress of its 5G rollout initiatives. Centrum Broking anticipates a 3.2 percent sequential revenue growth and an improvement in EBITDA margin by 36 basis points QoQ to 57.2 percent.
Nuvama, while projecting strong overall growth, noted that the consolidated EBITDA margin might decrease by 80 basis points QoQ. Axis Securities highlighted potential pressure on EBIT margin due to increased operating costs associated with data center investments and network expansion.
As the Sunil Bharti Mittal-led company prepares to announce its results, the stock was observed trading marginally lower on Monday, reflecting the market's anticipation of the official figures.