Airtel Q3 Results: Net Profit Slips 3%, ARPU Increases To Rs 163

The consolidated revenue of Airtel rose by 12.6 per cent to Rs 29,867 crore from Rs 26,518 crore in the December 2020 quarter

Bharti Airtel logged a 12.6 per cent rise in third-quarter revenue, helped by recent tariff hikes and addition in subscribers. Image: Getty

New Delhi: Bharti Airtel on Tuesday logged 3 per cent fall in its consolidated net profit to Rs 830 crore for the third quarter (Q3) ended December 2021.

The Telecom major had recorded a net profit of Rs 854 crore in the same period a year ago.

The consolidated revenue of Airtel rose by 12.6 per cent to Rs 29,867 crore from Rs 26,518 crore in the December 2020 quarter.

The telco reported a 12.6 per cent rise in third-quarter revenue, helped by recent tariff hikes and addition in subscribers.

The company’s consolidated revenue from operations for the quarter ended December 31 rose to Rs 29,867 crore from Rs 26,518 crore a year ago.

Airtel has said its average revenue per user (ARPU), a key performance indicator in the telecoms industry, was Rs 163 for the third quarter, up from Rs 146 a year ago.

The company had increased tariffs on prepaid plans in late-November, as did Reliance Jio and Vodafone Idea, while reiterating that the industry's mobile ARPU needs to be at Rs 200, and eventually at Rs 300, for a financially healthy business model.

In a statement, Bharti Airtel MD and CEO, (India & South Asia), Gopal Vittal said, “We have delivered another quarter of sustained performance across all our business segments. Overall Sequential revenue growth was at 5.4 per cent and Ebitda margins came in at 49.9 per cent. The recent tariff revision for mobile services has gone down well and we are exiting the quarter with an industry leading ARPU of Rs 163. The full impact of the revised mobile tariffs, however, will be visible in the fourth quarter. Google’s recent investment is a strong validation of Airtel’s role in being a leading pioneer of India’s digital revolution. Our emerging digital services portfolio across Airtel IQ, AdTech, digital market place, Nxtra and digital banking positions us well to build an Airtel of the future.”

On Tuesday, Airtel’s shares closed almost flat at Rs 706.95 on the BSE.