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Bharti Airtel Limited — Q3 FY24
Bharti Airtel reported a satisfactory Q3 FY24 with consolidated revenue of INR 37,900 crore, impacted by African currency devaluation.
bullish
high
✓ Verified against BSE filing
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Bharti Airtel reported a satisfactory Q3 FY24 with consolidated revenue of INR 37,900 crore, impacted by African currency devaluation. India revenue grew 3% sequentially to INR 27,800 crore, with EBITDA margins at 53.9%. Mobile ARPU improved to INR 208 from INR 203, driven by premiumization. 4G net adds were strong at 7.4 million, and postpaid net adds remained steady. Broadband saw moderation due to discontinuation of entry-level plans, while DTH added 388,000 customers. Airtel Business growth was soft globally but accelerated domestically. The company prepaid INR 8,325 crore of high-cost DoT debt, and India net debt-to-EBITDA improved to 2.91. Management remains confident in organic ARPU growth and expects CapEx to moderate next year. Key risk: continued lack of industry tariff hikes and free 5G data delaying meaningful monetization.
भारती एयरटेल ने वित्त वर्ष 2024 की तीसरी तिमाही में अच्छा प्रदर्शन किया। कंपनी की कुल कमाई 37,900 करोड़ रुपये रही, लेकिन अफ्रीकी मुद्रा के कमजोर होने से इस पर असर पड़ा। भारत में कमाई 3% बढ़कर 27,800 करोड़ रुपये हो गई। मोबाइल सेवा से प्रति ग्राहक औसत कमाई (ARPU) 203 से बढ़कर 208 रुपये हो गई, क्योंकि ज्यादा लोग प्रीमियम प्लान ले रहे हैं। 4G में 74 लाख नए ग्राहक जुड़े। ब्रॉडबैंड में सस्ते प्लान बंद होने से ग्रोथ धीमी रही। कंपनी ने सरकार को 8,325 करोड़ रुपये का कर्ज चुकाया। प्रबंधन को उम्मीद है कि ARPU अपने आप बढ़ेगा और अगले साल खर्च कम होगा। मुख्य चुनौती: टैरिफ न बढ़ने और मुफ्त 5G डेटा से कमाई में देरी।
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Mobile ARPU
INR 208
+INR 5 QoQ
ARPU improved sequentially from INR 203, driven by premiumization and mix upgrades.
4G Net Adds
7.4M
+7.4M QoQ
Strong momentum in 4G customer additions during the quarter.
Postpaid Net Adds
0.9M
+0.9M QoQ
Third consecutive quarter with over 25% of total net adds from postpaid.
5G Users
65M
+65M cumulative
Growing 5G base; 5G handset penetration expected to reach 25% by March 2025.
What Changed vs Last Quarter
NEW
Target India net debt-to-EBITDA below 2.5
Harjeet Kohli stated the goal is to reach closer to 2.5 or below for India leverage in the next 4-6 quarters.
NEW
Gradual move from NSA to SA over two years
Management expects to start refarming 4G spectrum to 5G and move to standalone architecture over the next two years.
UPDATED
CapEx moderation in FY25
Management indicated that FY24 is an elevated CapEx year, and CapEx will moderate in the next fiscal year.
DROPPED
FWA full rollout by end of calendar 2023
Airtel Air Fiber (FWA) with outdoor CPE to be launched in full by end of 2023, complementing FTTH.
DROPPED
Global B2B order book improvement in 2-3 quarters
Expect global business order book to pick up in about two to three quarters as OTT spending normalizes.
NEW RISK
No tariff hikes in near term
Management acknowledged that meaningful ARPU improvement requires industry tariff repair, which remains uncertain.
NEW RISK
Free 5G data headwind
Free 5G data in India is a headwind to monetization; management sees no differential pricing for 5G.
NEW RISK
African currency devaluation
Consolidated revenue was impacted by devaluation of Naira and Malawian Kwacha, affecting reported numbers.
NEW RISK
Global business slowdown
Airtel Business saw moderation due to global slowdown, though domestic segment is accelerating.
RISK GONE
Global OTT spending deferral
Large global OTTs are deferring bandwidth and messaging spend, impacting B2B revenue growth.
RISK GONE
5G monetization uncertainty
5G usage is inflated by free unlimited data; real incremental ARPU from 5G remains unproven.
RISK GONE
Tax dispute from Supreme Court order
Supreme Court disallowed deduction for license spectrum usage royalty; company made provisions but further legal recourse is uncertain.
RISK GONE
Competitive tariff dynamics
Management unable to commit to tariff hike timing; unilateral increases may not be followed by peers.
Fast read
Guidance and risk preview
Management indicated that FY24 is an elevated CapEx year, and CapEx will moderate in the next fiscal year.
Management acknowledged that meaningful ARPU improvement requires industry tariff repair, which remains uncertain.
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