iconiifl-logo-icon 1
IIFL

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

  • Open Demat with exclusive Advice & Services
  • Get a dedicated Relationship Manager to help you grow your wealth
  • Exclusive advisory on 20+ trading & wealth-based investment options
  • One tap Investments, Automated trading & much more
  • Minimum 1 lakh margin required
sidebar image

Q3FY23 Preview: Bharti Airtel: Revenue seen at Rs 357,056 million, PAT at Rs 26,502 million

6 Feb 2023 , 10:54 AM

Result date: 7th February, 2023

Recommendation: Buy

Target price: Rs 909

 

TRAI data for October indicates a decline in VLR (active) subscribers for Bharti Airtel, probably due to inability of low-ARPU subscribers to recharge their balances amid rising inflationary pressures. Bharti added 0.8 million reported subscribers — the highest in recent months — though lost 0.96 million VLR subscribers in October. In mid-November 2022, Bharti discontinued the cheapest plan with 28-day validity (at Rs99) in two circles — Haryana and Orissa. The Rs99 plan — most popular among 2G users — offers Rs99 talktime, 165 outgoing voice minutes and 200MB over a 28-day period. Overall, revenue could grow ~20% over the year-ago quarter.

Analysts at IIFL Securities estimate Bharti to have added 4 million 4G subscribers in Q3 versus 5 million in Q2. They estimate 2.1% sequential mobile revenue growth in Q3. EBITDA margin expansion of ~100 basis points is largely on account of SUC savings, despite higher NW operating expenses led by accelerated network rollout.

Analysts at IIFL Securities expect healthy EBITDA growth to sustain. The Enterprise segment may see some normalization after a strong Q2, and DTH may remain weak, as the industry awaits NTO 2.0 implementation. Net-net, they estimate overall India EBITDA to grow 3.4% sequentially. Airtel Africa may see 1.3% sequential EBITDA growth. On revenue weighted average basis, African currencies depreciated ~1.8% sequentially versus the USD. Analysts at IIFL Securities estimate 3.8% sequential revenue growth, but EBITDA growth estimate is more modest at 1.3% in USD terms, considering inflationary headwinds.

At the consolidated level, analysts at IIFL Securities also model Rs4 billion forex loss, looking at 3.7% depreciation of the INR versus USD.

Important management insights to watch out for:

  • Outlook on subscriber adds 
  • Margin drivers (including tariff changes strategy)
Rs. Million

December 2022 estimates

YoY change

QoQ change

Revenue 

357,056

19.6%

3.4%

EBITDA 

182,429

24.1%

3.7%

Profit After Tax 

26,502

219.5%

23.5%

Source: IIFL Research

Related Tags

  • Airtel
  • Airtel Q3
  • Bharti Airtel
  • Bharti Airtel Q3
sidebar mobile

BLOGS AND PERSONAL FINANCE

Images
28 Mar 2024   |   03:36 PM
Images
28 Mar 2024   |   03:01 PM
Images
28 Mar 2024   |   01:21 PM
Images
28 Mar 2024   |   01:02 PM
Read More
Knowledge Centerplus
Logo

Logo IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000

Logo IIFL Securities Support WhatsApp Number
+91 9892691696

Download The App Now

appapp
Knowledge Centerplus

Follow us on

facebooktwitterrssyoutubeinstagramlinkedin

2024, IIFL Securities Ltd. All Rights Reserved

ATTENTION INVESTORS
  • Prevent Unauthorized Transactions in your demat / trading account Update your Mobile Number/ email Id with your stock broker / Depository Participant. Receive information of your transactions directly from Exchanges on your mobile / email at the end of day and alerts on your registered mobile for all debits and other important transactions in your demat account directly from NSDL/ CDSL on the same day." - Issued in the interest of investors.
  • KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.
  • No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."

www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.

RISK DISCLOSURE ON DERIVATIVES
  • 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
  • On an average, loss makers registered net trading loss close to Rs. 50,000.
  • Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
  • Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.
Copyright © IIFL Securities Ltd. All rights Reserved.

Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248

plus
We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.