Bharti Airtel, one of India's leading telecommunications companies, is set to release its first-quarter results on Thursday. Here are the key details you should know:
Net Profit Forecast
Analysts polled by FactSet predict that Bharti Airtel will report a significant increase of 83% in net profit, amounting to ₹29.39 billion ($356.9 million) for the quarter ending in June. This anticipated growth surpasses the ₹16.07 billion net profit achieved during the same period last year.
Revenue Forecast
According to the FactSet poll, first-quarter revenue is expected to showcase a 12% rise to ₹367.88 billion.
Key Areas of Focus
India Mobile Segment
Bharti Airtel experienced a remarkable 44% surge in profit from its mobile services in India, totaling ₹40.82 billion during the fourth quarter. This increase was driven by a 2.9% growth in its customer base, reaching 335.4 million, and an 8.4% rise in average revenue per user, now standing at ₹193 per month. Investors will be closely observing the performance of this crucial segment.
Margin Analysis
The company's earnings-before-interest-and-taxes margin improved to 26.1% in the fourth quarter, showing an enhancement from the previous year's 23.2%. Given the current global environment characterized by escalating operational costs, investors will be closely monitoring margin trends.
Capital Expenditure
Bharti Airtel witnessed a substantial 91% increase in capital expenditure during the fourth quarter, amounting to ₹114.36 billion. Investors are keen to analyze the impact of this capital spending burden as telecom companies like Bharti Airtel constantly strive to upgrade their extensive networks in order to remain competitive.
