Bharti Airtel posted its quarterly results for Q3 FY22 on February 8, 2022. The company reported a decline of 17.3% QoQ in its consolidated PAT which came in at Rs 1,650 crore in the quarter under review from Rs 1,998 crore in the previous quarter. On a YoY basis, the PAT jumped by 22% from Rs 1,350 crore in the year ago period.
The telecom company’s revenue from operations increased by 5.4% QoQ to Rs 29,866 crore from Rs 28,326 crore in Q2 FY22 while there was a 12.6% YoY jump in the revenue from operations from Rs 26,517 crore in Q3 FY21. The mobile services business in India and Africa continued to perform well while the mobile services business in South Asia remained flat. The revenue from Airtel home services business and digital TV business also remained mostly stagnant.
However, Airtel has reported that its 4G customers now make up for 61% of its entire customer base. The telecom giant added 29.9 million 4G customers YoY and 3 million 4G customers QoQ, making the count of the company’s total 4G customers to 195.5 million. Airtel’s Average Revenue Per Unit (ARPU) also improved to Rs 163 in the quarter under review from Rs 146 in the year ago period.
In December 2021, the company pre-paid all of its spectrum liabilities worth Rs 15,519 crore from the 2014 acquisition in a move that will help the company save Rs 3,400 crore in interest payments. Airtel has already paid Rs 18,400 crore in Adjusted Gross Revenue (AGR) dues. The remaining AGR dues worth Rs 25,000 crore have to be paid by 2039.
Bharti Airtel’s stock closed in the green at Rs 708.90 per share after increasing by 0.34% at the end of the intraday trading session ahead of its quarterly earnings report on February 8, 2022.
Gopal Vittal, MD and CEO, India & South Asia, said, “We have delivered another quarter of sustained performance across all our business segments. Overall Sequential revenue growth was at 5.4% and EBITDA margins came in at 49.9%. The recent tariff revision for mobile services has gone down well and we are exiting the quarter with an industry leading ARPU of Rs 163. The full impact of the revised mobile tariffs, however, will be visible in the fourth quarter. Our Enterprise, Homes and Africa business continue to deliver strongly, with steady increase in contribution to the overall mix of the portfolio. Our balance sheet is robust and we are now generating healthy free cash flows. This has enabled us to recently prepay some of our spectrum liabilities to the Government thereby reducing the interest burden. Google’s recent investment is a strong validation of Airtel’s role in being a leading pioneer of India’s digital revolution. Our emerging digital services portfolio.”