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Bharti Airtel Q3 Results 2022

24 May 2022

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.

Hits of Airtel Q3 Results 2022

  • PAT up 22% YoY to Rs 1,650 crore from Rs 1,350 crore in the year ago period
  • Total income up 5.7% QoQ, 13% YoY to Rs 30,063 crore in the October-December 2021 quarter
  • Revenue from operations up 5.4% QoQ, 12.6% YoY to Rs 29,666 crore in the quarter under review
  • ARPU improves to Rs 163 from Rs 146 in the year ago period
  • EBITDA margin at 49.9% after an improvement of 398 basepoints
  • Mobile data consumption up by 33.8% YoY
  • Consumption per customer at 18.3 GB per month YoY

Misses

  • PAT down by 17.3% QoQ to Rs 1,650 crore in the quarter under review from Rs 1,998 crore in the previous quarter
  • Basic Earnings Per Share (EPS) down to Rs 1.49 from Rs 2.06 in the previous quarter and Rs 1.56 in the year ago period

Segment-wise revenue

  • Mobile Services (India): Revenue up by 8.8% YoY to Rs 16,091 crore from Rs 14,778 crore in Q3 FY21
  • Mobile Services (Africa): Revenue up by 19% YoY to Rs 9,105 crore from Rs 7,644 crore in Q3 FY21
  • Mobile Services (South Asia): Revenue down by 8% YoY to Rs 97 crore from Rs 106 crore in Q3 FY21
  • Airtel Business: Revenue up by 13.3% YoY to Rs 4,105 crore from Rs 3,621 crore in Q3 FY21
  • Homes Services: Revenue up by 40% YoY to Rs 796 crore from Rs 567 crore in Q3 FY21
  • Digital TV Services: Revenue up by 0.2% YoY to Rs 791 crore from Rs 79 crore in Q3 FY21
  • Others: Revenue up by 530% YoY to Rs 8.2 crore from Rs 1.3 crore in Q3 FY21

What the Management says

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.”

Other things to know about Bharti Airtel

  • Bharti Airtel pre-paid the deferred liabilities for spectrum acquired in 2014 of Rs 15,519 crore. 
  • The company recently updated their mobile tariffs, increasing the prices, the full impact of which will be gauged in Q4 FY22.
  • Google to invest upto $1bn in partnership with Airtel as part of its Google for India Digitization Fund.
  • Hughes and Airtel form a joint venture, becoming the largest Satellite service operator in India.
  • Bharti Airtel is the largest telecom services company in the country with a market capitalization of Rs 4.07 lakh crore (as of February 8, 2022).
  • The company’s P/E ratio is at -27.0 against the industry average of -19.17 while its P/B ratio is at 5.01 against the industry average of 9.26 (as of February 8, 2022).
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