Bharti Airtel Q1 Results: Net Profit Flat At Rs 1,612 Crore, Revenue Rises 14% – News18

Telecom operator Bharti Airtel on Thursday posted a net profit of Rs 1,612 crore for the first quarter ended June 2023, which is nearly flat over earnings in the same period of the previous year. The revenue for the just-ended quarter was 14 per cent higher at Rs 37,440 crore compared to the year-ago period “backed by strong and consistent performance delivery across the portfolio”, the company said.

“We have delivered yet another quarter of strong and competitive growth across all our businesses…Our focus on winning quality customers and driving premiumisation has helped us add 5.6 million new 4G customers and the highest ever postpaid customers in any one quarter,” managing director Gopal Vittal said in a statement.

Mobile services India revenues were up 12.4 per cent year on year led by continued strong 4G customer additions and an increase in Average Revenue Per User (ARPU).

The consolidated net income (after exceptional items) stood at Rs 1,612 crore, up by 0.3 per cent over the corresponding period of the previous year. The consolidated net income (before exceptional items) stood at Rs 2,902 crore, up by 91.3 per cent year on year. The company said that Mobile ARPU (a key metric for telecom operators) increased to Rs 200 in the first quarter of FY24 against Rs 183 in April-June FY23.

Airtel’s consolidated EBITDA witnessed an increase of 18.9 per cent YoY to Rs 19,746 crore in Q1’24. This led to an improvement in EBITDA margin from 50.6 per cent in Q1’23 to 52.7 per cent in Q1’24 on the back of sustained focus on our War on Waste program to drive cost optimisation.

Its EBITDA margins across businesses remained healthy, with India EBITDA margins improving from 51 per cent in Q1’23 to 53.7 per cent in Q1’24. Consolidated EBIT increased by 29 per cent YoY to Rs 10,079 crore. The consolidated net income before exceptional items for the quarter stands at Rs 2,902 crore. The consolidated net income after exceptional items stood at Rs 1,612 crore.

“The net debt-EBITDA ratio (annualised) and including the impact of leases as on June 30, 2023 is at 2.63 times. We continue to optimise the capital structure by judiciously allocating capital across our business to strengthen the balance sheet,” Airtel said.

It also said in a bid to deleverage the balance sheet, Airtel made a part prepayment of Rs 8,024 crore to DoT towards liabilities pertaining to spectrum acquired in 2015 spectrum.

Gopal Vittal, managing director of Bharti Airtel, said, “We have delivered yet another quarter of strong and competitive growth across all our businesses. Our consolidated revenue grew sequentially by 4 per cent, and EBITDA margin expanded to 52.7 per cent, underscoring the simplicity and execution of our strategy.”

He said the company’s focus on winning quality customers and driving premiumisation has helped it add 5.6 million new 4G customers and the highest-ever postpaid customers in any one quarter.

“We exit the quarter with an industry-leading ARPU of Rs 200. Homes, enterprise and our digital businesses continue to exhibit strong growth momentum, reflecting the resilience and strength of our overall portfolio. We continue to make strides on our ESG agenda and in leading the charter in India for sustainable practices,” Vittal said.