Bharti Hexacom Reports 13.6% YoY Revenue Growth in Q1 FY25

Bharti Hexacom Limited announced its financial results for the quarter ended June 2024. The company reported strong financial results for the first quarter of FY25, with revenues reaching ₹1,911 crore, marking a 13.6% year-on-year (YoY) increase and a 2.3% rise quarter-on-quarter (QoQ). The company’s performance was driven by robust growth in its mobile services and the Homes and Office business segments.

Mobile services revenues rose by 12.9% YoY, supported by the addition of 2.8 million smartphone users, a 16.3% YoY increase, and an improvement in Average Revenue Per User (ARPU), which grew to ₹205 from ₹194 in Q1 FY24. The focus on acquiring high-quality customers and enhancing the customer mix has contributed to this strong performance. Additionally, mobile data consumption surged by 30.6% YoY, with customers using an average of 25.7 GB per month, reflecting the growing demand for data services.

The Homes and Office business continued its growth trajectory, with revenues increasing by 21.1% YoY. The company’s strategy of expanding coverage to more cities and deepening its presence in existing markets proved effective, resulting in the addition of 16,000 new customers during the quarter, bringing the total customer base to 0.3 million. Bharti Hexacom’s asset-light partnership model with local cable operators facilitated this expansion, enabling the company to operate in 97 cities.

Despite the revenue growth, Bharti Hexacom faced some pressure on margins. The EBITDA for the quarter stood at ₹912 crore, reflecting a 6.6% YoY increase, although the EBITDA margin declined by 313 basis points (bps) YoY to 47.7%. Similarly, the EBIT declined by 5.6% YoY to ₹416 crore, with the EBIT margin decreasing by 443 bps YoY to 21.8%.

Net income before exceptional items was ₹193 crore, a 23.7% decline YoY. However, net income after exceptional items surged by 101.9% YoY to ₹511 crore, indicating the company’s ability to manage one-off costs effectively.

Bharti Hexacom’s operational performance highlights its strong business momentum and strategic execution, with the company maintaining its leadership in key industry metrics such as ARPU and data usage.

On August 06, 2024, the share price of Bharti Hexacom Ltd opened at ₹1,150.00, touching the day’s low at ₹1,099.35, as of 9:51 AM on the NSE.

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