Bharti Airtel announces Q4 results, Net Profit declines by 31%

Bharti Airtel reported a 31% decline in consolidated net profit for Q4FY24, amounting to Rs 2,072 crore, compared to Rs 3,006 crore the previous year, missing market expectations of Rs 3,274 crore. Despite the profit drop, revenue from operations rose 4% year-on-year to Rs 37,599 crore from Rs 36,009 crore. The Board proposed a final dividend of Rs 8 per fully paid-up share and Rs 2 per partly paid-up equity share for FY24.

EBITDA Performance

Consolidated EBITDA for the March quarter rose 4% year-on-year to Rs.19,590 crore, compared to Rs.18,807 crore in the same quarter last year. However, EBITDA margins saw a slight decline of 10 basis points, settling at 52.1%. Despite the decline in net profit, Bharti Airtel’s revenue and EBITDA demonstrated growth in the March quarter of the financial year 2023-24. The marginal decrease in EBITDA margins indicates a slight compression in profitability, possibly influenced by various factors such as operational expenses or market conditions.

Impact of Currency Devaluation

The consolidated revenues for the quarter were adversely affected by the devaluation of African currencies, particularly the Nigerian Naira. Despite this challenge, Airtel achieved an Average Revenue Per User (ARPU) of Rs.209, up from Rs.193 in the same quarter last year. This improvement was driven by a continued focus on acquiring high-quality customers and enhancing customer mix.

Revenue and Growth in India

India revenues for the March quarter surged 13% year-on-year to Rs.28,513 crore, with mobile revenues also growing 13% due to improved realizations and strong additions of 4G/5G customers. The Homes business continued its growth momentum, posting a 20% y-o-y revenue increase, reflecting the company’s strategy to capitalize on the rising demand for high-speed and reliable broadband in India.

Business and Digital Services

Airtel’s focus on digitization and acquiring high-value customers led to 331,000 new customer additions in the quarter, bringing the total customer base to 7.6 million. The Airtel Business segment experienced a 14% year-on-year revenue growth by leveraging its converged portfolio and the increasing demand for data and connectivity solutions. Emerging digital products also contributed significantly to this growth.

Conclusion: In conclusion, Bharti Airtel’s Q4FY24 report reflects a 31% decline in net profit, reaching Rs.2,072 crore. Despite this, revenue from operations rose by 4% to Rs.37,599 crore, with Indian revenues growing by 13% to Rs.28,513 crore. The company’s strategic focus on digitization and high-value acquisitions drove a 14% increase in Airtel Business segment revenue.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.