Bharti Airtel – Growth Surge

Bharti Airtel possesses strong momentum after the company posted its Q4 numbers by finalizing the FY23 fiscal year. The stock has gained by over 1% and is currently trading near its day’s high.

Airtel is among the top 10 most valued companies on BSE in terms of market share. At the current market, the company’s m-cap has risen by nearly ₹4,461 crore to ₹4,43,753.29 crore on Wednesday.

Consolidated Q4FY23 Earnings Walkthrough:

Airtel’s consolidated Q4 PAT was registered at ₹3,006 crore which is up by 50% YoY and 89% QoQ. Its revenue from operations was calculated at ₹36,009 crore which is up by 14% YoY. This growth has been supported by rigid and persistent performance outputs across the portfolio.

The consolidated EBITDA was computed at ₹18,807 crore. The EBITDA margins were at 52% which have acheived an improvement of 144 bps YoY.

Segment wise performance:

Airtel’s India revenue was calculated at ₹25,250 crore which is up by 12% YoY. The EBITDA margin was computed at 53% which is up by 225 bps YoY. The customer base is strong at ~ 37.5 crore. During the quarter, CAPEX was at ₹8,989 crore in the domestic market.

African business revenue in constant currency, was up by 18.6%YoY. EBITDA margin was at 49% which is down by 74 bps YoY. The customer base was reported at 1.40 crore and CAPEX stood at ₹2,394 crore in the last quarter.

Operational indicators:

During Q4FY23 the mobile ARPU has increased to ₹193 as compared to ₹178 in Q4FY22.

Airtel reported that its ARPU persists to be the best in the industry and average data usage per data customer at 20.3 GBs/month.

Additionally, 4G data customers were up by 2.33 crore YoY & 74 lakh QoQ which is 67% of the overall mobile customer base. The mobile data consumption is up by 20% YoY.

The homes business continues to grow its presence with 4,04,000 net customer additions in Q4FY23. The digital TV customer base is at 1.59 crore in Q4FY23.

Declaration of Dividend:

The telecom major has recommended a final dividend of ₹4 per fully paid-up equity share and a Re 1 per partly paid-up equity share for the financial year FY23. The face value of dividends per share is ₹5 each.

If the dividend is approved by the shareholders at the ensuing Annual General Meeting (‘AGM’), then Airtel will pay the dividend amount within 30 days from the date of the AGM.

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