Bharti Airtel Q1: Net Profit Flat At Rs 1,612 Crore, Revenue Jumps 14 Per Cent

Airtel's overall revenue for the first quarter of the financial year 2023-24 (Q1 FY24) was 14 per cent higher at Rs 37,440 crore compared to the year-ago period

Bharti Airtel on Thursday clocked a consolidated net profit of Rs 1,612 crore for the quarter ending on June 30, 2023. The figure remained relatively unchanged from the first quarter last year, where the net profit was Rs 1,607 crore. However, compared to the fourth quarter of the financial year 2022-23, the net profit nearly halved, declining from Rs 3,005.6 crore.

The overall revenue for the first quarter of the financial year 2023-24 (Q1 FY24) was 14 per cent higher at Rs 37,440 crore compared to the year-ago period. The company in its exchange filing attributed this to "strong and consistent performance delivery across the portfolio."

"We have delivered yet another quarter of strong and competitive growth across all our businesses...Our focus on winning quality customers and driving premiumisation has helped us add 5.6 million new 4G customers and the highest ever postpaid customers in any one quarter," Managing Director Gopal Vittal said in a statement.

In Q1 FY24, the average revenue per user (ARPU) per month, a crucial metric used by telecom companies to assess revenue generation, witnessed a year-on-year increase of 9.28 per cent, reaching Rs 200. Furthermore, the Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for the quarter stood at Rs 19,746 crore, a 18.9 per cent growth compared to the year-ago period. The EBITDA margin expanded by 212 basis points year on year, reaching 52.7 per cent.

Additionally, the EBIT (Earnings Before Interest and Taxes) also rose 29 per cent year-on-year reaching Rs 10,079 crore. The EBIT margin also saw an expansion of 310 basis points year-on-year, standing at 26.9 per cent.

In the first quarter, Airtel's India revenue reached Rs 26,375 crore, up 13.1 per cent year-on-year. The mobile revenues also saw growth of 12.4 per cent year on year, attributed to improved realization and substantial 4G customer additions throughout the year. The Average Revenue Per User (ARPU) increased as a result of a continued focus on acquiring quality customers and improved realizations through premiumization strategies, the company said. 

Airtel's dominance in the postpaid segment was further reinforced in Q1, with a net addition of 0.8 million customers year-on-year. As a result, the company's postpaid customer base reached an impressive 40.4 million.

The consolidated net income (after exceptional items) stood at Rs 1,612 crore, up by 0.3 per cent over the corresponding period of the previous year. The consolidated net income (before exceptional items) stood at Rs 2,902 crore, up by 91.3 per cent year-on-year.

According to a MoneyControl report, the company's African arm faced losses in Q1 FY24 primarily due to Nigerian currency devaluation. However, these losses were balanced out by increased adoption of post-paid and 4G services, along with steady customer acquisition in its domestic market.

In terms of revenue, Airtel Africa witnessed a significant 20.4 per cent year-on-year growth (in constant currency). The EBITDA margin also showed improvement, reaching 49 per cent, up 83 basis points year on year. Additionally, the EBIT margin stood at 33 per cent.

Airtel's customer base in Africa reached an impressive 143.1 million. The company's capital expenditure (capex) for the quarter in the African continent amounted to Rs 1,150 crore.