Bharti Airtel Ltd net profit is likely to fall by 10-30% in the September quarter. Ebitda margins are predicted to increase both sequentially and annually. Analysts expected a 30-50 lakh gain in subscribers for the quarter, as well as an increase in average revenue per user (ARPU) due to user conversion from 2G to 4G and a higher number of days than in the previous quarter.
According to Emkay Global, Bharti Airtel is likely to earn Rs 1,936.90 crore in Q2, a 9.7 percent decline from Rs 2,145.20 crore in the same quarter last year. Net sales are predicted to rise 11% year on year to Rs 38,311.10 crore, up from Rs 34,526.80 crore in the previous year's same period. The EBITDA margin has increased to 52.6 percent from 52.3 percent in June and 51% in the previous quarter.
"With the addition of 4 million subscribers, the subscriber addition trend is likely to pick up from the previous quarter." A total of 6.8 million new data users are expected. The transfer of 2G to 4G users and the increased number of days in Q2 are expected to enhance APRU by 2.2% QoQ. As a result, revenue in India's mobility market is predicted to grow by 2.3 percent year on year," Emkay stated.
Prabhudas Lilladher predicted a 28.5 percent reduction in adjusted earnings to Rs 1,534.80 crore year on year. Sales at Bharti Airtel are likely to increase 11.6 percent year on year to Rs 38,517 crore. This brokerage anticipates a net subscriber acquisition of 3 lakh and an ARPU of Rs 203 for the quarter.
"Africa, enterprise and home services will show steady growth ahead, while DTH business will be muted," the research said. According to ICICI Securities, Bharti's ARPU will improve 1.5% year on year to Rs 203 due to premiumisation, an extra day, and a price hike in the minimum recharge plan. As a result of increasing minimum recharges in recent quarters, this organization expects Bharti Airtel's user growth to reach 50 lakh. The number of data subscribers added by Bharti is projected to remain steady at 56 lakh.
In its Q2 preview, BNP Paribas anticipated a 22% YoY revenue increase for Bharti Airtel's residential broadband segment. According to the brokerage, enterprise company sales should also expand in the double digits.
"We expect capex to remain elevated in 2HFY24 as Airtel continues to expand its rural 4G and urban 5G coverage," according to the business. Airtel's Africa revenue is likely to dip q-q due to the substantial devaluation of the Nigerian Naira near the conclusion of 1QFY24. "However, its impact on our valuation for Airtel is negligible, as Airtel Africa (a publicly traded company) accounts for only 5% of our valuation," the company said in a statement.
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