Last Updated on February 7, 2024 by ethinos
On February 5, 2024, Bharti Airtel Limited (BSE, NSE: BHARTIARTL) announced its Q3 2023-24 results, posting Revenues of ₹37,900 Cr, up 5.9% YoY, with India business clocking Rvenues of ₹27,811 Cr, a rise of 11.4% YoY led by resilience and consistency in performance over the entire Company portfolio.
Table of Content
Bharti Airtel Q3 Results Takeaways
Ace telecom giant Bharti Airtel has had a stable and positive Q3 and here are the key financial highlights of the Company’s results:
- The Company has registered Q3 Revenues of ₹37,900 Cr, a rise of 5.9% YoY, partly affected by currency devaluations in African markets.
- The Company’s India business posted quarterly Revenues of ₹27,811 Cr, a rise of 11.4% YoY led by solid and consistent performance across the Company’s portfolio.
- The Company’s Mobile Services India revenues are up by 11.8% YoY, backed by healthy 4G/5G customer additions and a rise in ARPU.
- Airtel Business Revenues were up by 8.7% YoY, supported by synergies from the Company’s emerging portfolio.
- The Homes Business has sustained a solid growth trajectory momentum, with Revenues high by 23.0% YoY due to strong customer additions.
- Digital TV Revenues were up by 6.0% YoY, largely boosted by improved realisations and recoveries in net customer additions.
- The Company’s Consolidated EBITDA was at ₹20,044 Cr with the EBITDA margin standing at 52.9%, an improvement of 94 bps on a YoY basis. The India Business clocked an EBITDA of ₹15,000 Cr, with an EBITDA margin standing at 53.9%, a rise of 119 bps YoY.
- The consolidated EBIT was at ₹9,844 Cr with an EBIT margin of 26.0%, showing an improvement of 11 bps YoY. The Company’s India business posted an EBIT of ₹509 Cr with an EBIT margin registered at 23.4%, a rise of 82 bps YoY.
- The consolidated Net Income for the quarter (before Exceptional items) stood at ₹2,492 Cr, an increase of 25.0% YoY. The consolidated Net Income for Q3 (after Exceptional items) stood at ₹2,442 Cr, a rise of 53.8% on a YoY basis.
- The Q3 Capex stood at ₹9,274 Cr.
Additional Read: Q3 Results Dashboard
Peak Quarterly Business Operations
Concerning the Company’s business performance for the quarter, the highlights are mentioned below:
- In Q3, Bharti Airtel set benchmark operational indicators for the telecom industry in general, portraying healthy business momentum and sound execution.
- In Q3, the Company’s 4G and 5G data customers rose by 28.2 Mn YoY and 7.4 Mn QoQ, accounting for 71% of the overall mobile customer base.
- In Q3, there were postpaid net additions of 0.9 Mn.
- The mobile ARPU went up to ₹208 in Q3 FY24 versus ₹193 in Q3 FY23. For Q3 FY24, mobile data consumption rose by 21.1% YoY, with consumption per customer standing at 22.0 GB per month.
- The Company’s Homes Business segment witnessed continued growth with net customer additions standing at 359k in Q3 FY24. For Q3 FY24, the Digital TV net additions were at 388k. This has been the highest figure in the last 12 Company’s quarters.
- The Company managed to roll out ~12.3k towers in Q3, primarily to further strengthen its network coverage and give customers seamless connectivity. In the last year, the Company has rolled out ~45k towers to ensure superior coverage and connectivity in urban and rural areas.
- The Company has made a prepayment of ₹8,325 Cr in January 2024 and ₹16,349 Cr YTD FY24, to the Telecom Department, as part of the partial payment of deferred liabilities of spectrum acquired in the 2015 auction.
- The Company acquired a 97.1% stake in Beetel Teletech in January 2024, along with its 49% stake in Dixon Electro Appliances.
- The Company’s emerging digital business is going strong. The Company has an IoT business which is at an inflection point. In Q3 FY24, the Company forged strategic partnerships with Adani Energy Solutions and Intellismart, to power up to 20 million smart meters.
The Management’s Take on Q3 Results
The MD of Bharti Airtel had some key aspects of Q3 results to share and these are highlighted below:
- The Company has managed to deliver yet another consistently performing quarter across all the business verticals.
- The Revenue from the Indian side of the business witnessed stable momentum and sequentially grew by 3.0%. The consolidated revenue was affected by the devaluation of the Malawian Kwacha and the Nigerian Naira.
- The quarter experienced a growth trajectory for the Homes and postpaid businesses, while the DTH business managed to make 388k net additions, this being the most in the past 12 quarters.
- The Company remains on track with its plan of premiumisation that aided it in adding 7.4 million 4G and 5G customers and exiting Q3 with an industry-leading ARPU of ₹208.
- At the ARPU of ₹208, the Company’s ROCE is still low at 9.4%.
Financial Results at a Glance
Here is a glimpse of the financial results of Q3 (figures in ₹ Crore except where indicated by %):
| Metrics | Q3 FY 2023-24 | Q3 FY 2022-23 |
| Total Revenue | 37,900 | 35,804 |
| EBITDA | 20,044 | 18,601 |
| EBITDA Margin % | 52.9% | 52.0% |
| Profit Before Tax | 4,239 | 4,359 |
| Net Income | 2,442 | 1,588 |
Additional Check: Bharti Airtel Share Price
Q3 FY24 Result Summary
Bharti Airtel, headquartered in India, is an international communications solutions provider with more than 500 Mn customers living in 17 countries spread over Africa and South Asia. Ranking among the leading three mobile operators internationally, the Company and its networks are responsible for covering more than two billion people. Bharti Airtel has the distinction of being India’s largest integrated
communications solutions provider as well as the second-largest mobile operator on the continent of Africa. The retail portfolio of Bharti Airtel includes high-speed 4G and 5G mobile broadband, streaming services spanning video and music, Airtel Xstream Fiber promising speeds up to 1 Gbps with convergence over linear and on-demand entertainment, financial services, and digital payments. Bharti Airtel, or simply Airtel, has a gamut of offerings for enterprise clients, comprising data centre and cloud services, IoT, secure connectivity, cyber security, Ad Tech, as well as CPaaS (Airtel IQ).
With an edge over the African markets, and scaling new heights in Indian markets, Bharti Airtel has reportedly been a gainer in Q3 FY24. Apart from the positive financial growth metrics in Q3, with Revenues reaching highs, the Company launched a one-of-a-kind integrated platform, Airtel Advantage, to offer global interconnected solutions. The automated platform offers International Voice, P2A, A2P, SMS, P2P, Direct Inward Dialing (DID), as well as International Toll-Free Service (ITFS). The platform enables carrier partners to smoothly address connectivity requirements with just a few clicks. Maintaining its firm spot as a leader in the Telecom industry in India, posting a consolidated Revenue surge in Q3, Bharti Airtel is ready to rise further in its last fiscal quarter and gain a head start in FY24.
Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.
This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.
For Research Disclaimers Click Here: https://bit.ly/3Tcsfuc
Source: Bharti Airtel Limited Press Release on BSE
