Bharti Airtel Q3 results today. What analysts say on Africa biz, ARPU & margin

Bharti Airtel Ltd is all set to report its quarterly results later today. Analysts see 5-8 per cent rise in year-on-year revenue for the telecom operator while their views vary largely in terms of profitability. Average revenue per user (ARPU) is seen improving sequentially.

Axis Securities expects Bharti Airtel to report 10.5 per cent YoY drop in profit at Rs 2,340 crore compared with Rs 2,614 crore in the same quarter last year. Net sales for the quarter rose 8.4 per cent YoY to Rs 38,800 crore from Rs 35,804 crore YoY. Ebitda margin is seen at 28 per cent, up 273 basis points. The brokerage said Airtel's revenues may grow by encouraging 4.7 per cet sequentially, led by higher wireless revenues in India and Africa. Operating margins are likely to witness marginal expansion due to lower commissioning costs and S&M expenses, it said.

Emkay Global said Bharti Airtel’s averge revenue per user (ARPU )is likely to grow 1.3 per cent sequentially to Rs 205, given a better mix with more users converting to 4G from 2G. Subscriber addition is seen at 35 lakh compared with 37 lakh in the Sepemebr quarter.

"We expect Africa revenue at $1,228 million (down 1.4 per cent QoQ) and Ebitda at $604 million (49.1 per cent margin, up 64 bps QoQ), on currency devaluation. Africa crossed the 15 crore subscriber mark at the end of December 2023, indicating the addition of 23 lakh subscribers in Q3 againt 46 lakh in Q2. On a consolidated basis, we expect revenue to increase by 1.1 per cent QoQ and Ebitda to improve 0.9 per cent QoQ, with Ebitda margin expansion of 9 bps," it said.

Emkay Global sees profit after tax at Rs 3,002 crore. It sees sales at Rs 37,461 crore. ICICI Securities sees Bharti Airtel's sales at Rs 37,365 crore, up 4.4 per cent. It sees profit at Rs 2,556 crore.

Prabhudas Lilladher sees adjusted profit of Rs 1,546 crore, down 25.8 per cent. It sees sales rising 5.8 per cent to Rs 37,895 crore. PL said its estimates factored in net subscriber addition of 36 lakh and average ARPU of Rs 205 in Q3. Africa, enterprise and home services will show steady growth ahead, while DTH business will be muted, it said.

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