Airtel Q3 results preview: Revenue to increase by 2.3%, EBITDA to grow 2%

This signifies a noteworthy 6.3 percent year-on-year (YoY) increase in the current quarter compared to ₹35,804.40 crore in the corresponding period last year, and a modest 2.7 percent sequential rise.

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According to a report by Prabhudas Lilladher, Bharti Airtel’s consolidated revenue for Q3FY24 will experience a quarter-on-quarter increase of 2.3 percent, reaching ₹37,900 crore. Simultaneously, the Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is projected to exhibit a sequential growth of 2 percent, reaching ₹19,900 crore.

The adjusted Profit After Tax (PAT) for the current reporting quarter is estimated at ₹15,467 crore, reflecting a 2.6 percent decrease from the Q3FY2023 figure of ₹15,881 crore.

“For Q3, we have factored subscriber growth of 3.6 mn (Q2FY24: 4 mn) to 346mn coupled with ARPU increase of 1.1% QoQ to ₹205. Airtel Africa business is expected to see revenue growth of 4% QoQ, and we have factored in a 4% QoQ growth rate for the enterprise business. Home services will see revenue growth of 8.1% QoQ with margin expansion of 20bps QoQ. For DTH we have factored a muted growth of 0.7% QoQ,” the report stated.

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Prabhudas has taken into account a projected subscriber growth of 3.6 million for Q3, bringing the total to 346 million. This growth is coupled with an anticipated ARPU increase of 1.1 percent quarter-over-quarter (QoQ) to ₹205. Notably, the subscriber growth in Q2FY24 was at ₹Q2FY24. Prabhudas forecasts a 4 percent QoQ revenue growth for the Africa business, factoring in a 4 percent QoQ growth rate for the enterprise business.

Home services will see revenue growth of 8.1 percent QoQ with margin expansion of 20bps QoQ. For DTH a muted growth of 0.7 percent QoQ is seen.

Bharti is also targeting ₹50,000 crore market opportunity with its Enterprise offerings including CPaaS, cloud, cybersecurity and data centers as the company expects 80% of corporates will put up 5G within the next 3 years.

The agency further assigned ‘Accumlate’ rating to the Bharti Airtel stock with a target price of ₹1,088 crore.A

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Published: 04 Feb 2024, 03:41 PM IST