Bharti Airtel posted a consolidated net profit of ₹8,167 crore in the June quarter, while revenue from operations grew 18.4% year-on-year to ₹58,539 crore, although profit came in below Street estimates.
The telecom operator added a record one million postpaid subscribers, increased ARPU to ₹264, and continued to benefit from tariff hikes and premiumisation.
Airtel's Homes, Airtel Business and Africa operations delivered strong growth, with the company ending the quarter with an overall subscriber base of 681 million across its markets.
Bharti Airtel Q1 Profit Jumps 37% to ₹8,167 Crore as Mobile Business Powers Growth
Higher mobile tariffs, record postpaid subscriber additions and strong growth across India and Africa helped Bharti Airtel deliver double-digit revenue growth during the June quarter
Summary
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Bharti Airtel Ltd recorded a 37 per cent year-on-year rise in consolidated net profit to Rs 8,167 crore for the quarter ended June 30, fueled by increased mobile tariffs, robust customer additions and sustained growth in its India and Africa operations.
This figure missed the Rs 8,374 crore projection by CNBC-TV18.
Consolidated revenue from operations expanded 18.4 per cent from the previous year and 5.7 per cent sequentially to hit Rs 58,539 crore. The telecom company reported a consolidated EBITDA of Rs 33,599 crore, resulting in a 57.4 per cent EBITDA margin.
Average revenue per user increased to Rs 264 from Rs 250 a year ago, showcasing the effect of tariff increases and a better customer mix.
"We delivered yet another quarter of strong performance, supported by the resilience of our diversified portfolio and sharp execution across businesses," Managing Director Gopal Vittal said in a statement.
Vittal said India revenue grew 4.2 per cent sequentially, while the Africa business posted 5.7 per cent constant currency growth over the previous quarter.
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On Tuesday, Bharti Airtel shares ended 0.8 per cent lower at Rs 1,955.1 apiece.
Mobile Segment Drives Growth
Revenue for the India mobile business increased 9.2 per cent year-on-year, driven by premiumisation. The company onboarded one million postpaid subscribers during the quarter.
This marked its highest quarterly addition and pushed the total postpaid base to 30 million.
The operator also added five million smartphone users over the three-month period. This brought total smartphone user additions over the past year to 21.1 million.
Airtel introduced a Postpaid Fast Lane service powered by 5G network slicing technology designed to provide priority network access to postpaid users.
The firm expanded its network infrastructure by installing 1,579 towers and 14,540 mobile broadband base stations during the June quarter. During the previous year, the company deployed 7,631 towers and installed 45,171 kilometres of fibre.
Diversified Segments Post Growth
The Homes division registered a 33.2 per cent year-on-year revenue increase. The segment secured 473,000 new customers, lifting its subscriber base to 14.7 million.
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Airtel Business, the enterprise arm, grew 12 per cent year-on-year, propelled by digital solutions and connectivity services. The division launched Airtel Secure Workforce, an enterprise-focused managed Zero Trust Architecture cybersecurity platform.
The Digital TV segment generated Rs 773 crore in revenue and maintained 16 million customers, as IPTV services further backed the firm's convergence strategy.
The Africa business achieved 21.1 per cent year-on-year revenue growth in constant currency terms, finishing the quarter with 189 million customers. Airtel completed a share swap transaction to boost its stake in Airtel Africa above 79 per cent, a move Vittal described as "a strong reflection of our conviction in Africa's long-term growth potential."
The company added 14.9 million customers across its 15 operating markets. This expansion took the overall subscriber base to 681 million.