Bharti Airtel - 1QFY21 - Angel Broking

Mr. Keshav Lahoti, Associate Equity Analyst, Angel Broking Ltd

On a consolidated basis, Bharti Airtel reported 0.9%/15.4% revenue growth QoQ/YoY to Rs. 23,939 crore. EBIDTA also registered growth of 2.4%/26.4% QoQ/YoY to Rs. 10,408 crore led by tariff hike. Margins also maintained a positive growth trajectory by improving by 60 bps QoQ and 380 bps YoY. Company reported loss of Rs. 15,933 crore including Rs. 11,746 crore exceptional loss mainly due to AGR provision. Overall, Company reported better numbers than street expectations.

On India mobile business front, ARPU for the quarter increased by 1.8% QoQ to Rs. 157. ARPU for the quarter was negatively impacted due to customers inability to access their regular retailers to recharge and extension in validity of minimum recharge plan during lock-downs. ARPU registered strong growth of 21.3% YoY due to tariff hikes in Dec'19 and focused on quality customers by the Company. Company registered a minor fall in subscriber base by 1.3% QoQ due to covid-19. Although, YoY subscriber base registered growth of 1.1%. Subscriber base of data customers is continuously increasing from 43.4% of total subscribers in Q1FY20 to 53.3% for the quarter. Due to lock-downs, the pace of conversion of subscribers to data have reduced for the quarter.

We are bullish on Bharti Airtel considering that it is almost immune to covid-19, industry dynamics are looking favorable and it is gaining revenue market share. Negative outcome for Vodafone-Idea in AGR matter can lead to increase in subscribers at rapid pace for the Company and increase in chances of next round of tariff hike by the industry.

Shares of BHARTI AIRTEL LTD. was last trading in BSE at Rs.554.85 as compared to the previous close of Rs. 552.85. The total number of shares traded during the day was 528109 in over 8729 trades.

The stock hit an intraday high of Rs. 559 and intraday low of 546.45. The net turnover during the day was Rs. 293199582.

Source : Equity Bulls

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