Bharti Airtel India Ltd.- Q2 Results

Last Updated on November 2, 2023 by BFSLTeam BFSLTeam

On October 30, 2023: Bharti India Ltd. (BSE, NSE: BHARTARTL) announced its Q2 2023-24 financial results, posting impressive numbers with quarterly revenues of ₹37,044 Cr, an increase of 7.3% YoY, supported by consistent and robust performance standards in the company’s Indian operations.   

Key Highlights

Bharti Airtel has clocked positive results for Q2, and the following are the key highlights of the company’s Q2 report:

• With quarterly revenues up by 7.3% YoY, the company has posted revenues of ₹37,044 Cr.
• Revenues are up mainly because of the Indian side of the business and these stand at ₹26,995 Cr, a rise of 10.9 YoY.
• From the Indian standpoint, mobile services revenues are up 11.0% YoY, prompted by healthy 4G/5G customer additions as well as ARPU increases. 
• In terms of the company’s business revenues, these were at a high of 9.5% YoY, boosted by synergies from connectivity solutions.
• The home business continues its momentum of growth, with revenues up 23.3% YoY. Again, this was largely due to customer additions.
• Revenues were also up in the segment of digital TV and with a strongly held market position, these were up by 3.1% YoY. 
• The consolidated EBITDA for the quarter stood at ₹19,665 Cr, with an EBITDA Margin of 53.1%, a 176-bps improvement on a YoY basis. 
• Consolidated Net Income (after exceptional items) stood at ₹1,341 crore, a decrease of 37.5% YoY.

Additional Read: Q2 Results Dashboard

Operational Indicators – Bharti Airtel Leads with Robust Momentum

In terms of operational indicators for the industry, the company showed healthy business momentum with solid business execution. Note the following:

• 4G/5G data customers rose by 27.2 Mn YoY and 7.7 Mn QoQ, and this amounts to 69% of the overall mobile client base. 
• In Q2, the company witnessed the highest-ever postpaid net additions amounting to 1.0 Mn. 
• In Q2 FY 23-24, mobile ARPU went up to ₹203 versus ₹190 in Q2 FY 22-23. 
• In more positive results for the business, mobile data consumption went up by 19.6% YoY, with consumption per customer standing at 21.7 GB per month. 
• The company launched Airtel Xstream AirFiber in Q2 – this is India’s first wireless home WiFi, and it is powered by 5G plus. 

Raising the Bar – Business in Africa

Bharti Airtel posted the following results for its business on the continent of Africa:

• In terms of constant currency, the Revenue was up by 19.0% YoY.
• The EBITDA Margin stood at 49.6%, up by 43 bps YoY.
• Capex for Q2 was at ₹1,419 Cr.
• The customer base for Q2 was at 147.7 million. 

Also Read: Bharti Airtel Share Price

Management Commentary 

The MD of Bharti Airtel Ltd., Gopal Vittal, had some insights on the results and these are shared below: 

• The company has experienced yet another quarter of healthy growth in terms of its revenue. Margins have also shown improvement. 
• On the Indian front, Revenue continues its momentum gain and has shown a sequential growth of 2.4%. 
• Having talked about the overall positive results portrayed by the Q2 report, the MD mentioned that the consolidated revenue was affected by the devaluation of the Nigerian Naira. 
• In more optimistic results, the company showcased consolidated EBITDA margin increases of 53.1% boosted by a solid battle on the Waste Programme. 
• The company added a whopping 7.7 Mn 4G/5G net adds and sealed the quarter with an industry-topping ARPU of 203. 
• Postpaid and Homes businesses have continued robust growth with the highest-ever net adds in both segments (this is the highest-ever seen in any single quarter). 
• The performance success of the company is based on a consistent and simple strategy, that of targeting quality customers while delivering the best possible experience in a “seamless digital way”.  

Financial Results 

Here are the financial results of Q2 in a nutshell (all figures in ₹ Cr except where % is indicated):

Metrics	Q2 FY 2023-24	Q2 FY 2022-23	YOY Growth %
Total Revenue	37,044	34,527	7.3%
EBITDA	19,665	17,721	11.0%
EBITDA/Total revenues	53.1%	51.3%	1.8%
EBIT	9,929	8,762	13.3%
EBIT/Total revenues	26.8%	25.4%	1.4%
Profit Before Tax	5,510	4,265	29.2%
Net Income	1,341	2,145	-37.5%

About Bharti Airtel Ltd.

A leader in the telecommunication sector in India, Bharti Airtel Limited has a wide domestic and global reach. With its headquarters in New Delhi, the company has developed a reputation of being the most dependable provider of ICT services possessing a global network spanning Europe, the USA, Africa, the Middle East, India, Asia-Pacific, and SAARC regions. Airtel Telecommunications has the distinction of being ranked among the leading 3 mobile service providers across the world (in terms of subscribers). 

The company boasts a diverse portfolio of products and strategically positioned submarine cables plus a satellite network across 365,000+ RKMs across 5 continents in 50 countries. Bharti Airtel is constantly pushing the boundaries with regard to the delivery of digital services with a primary focus on improved end-user experiences, available infrastructure 24 hours a day, and a superior quality of service.

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Source:

https://www.airtel.in/about-bharti/equity/results