Bharti Airtel Ltd, the second-largest telecom operator in India, reported its first-quarter financial results with a mix of positive and negative outcomes. While the revenue surpassed expectations, the profit fell short of estimates.
During the first quarter of fiscal 2024, the company achieved a flat net profit of ₹1,612.5 crore, slightly higher than ₹1,607 crore in the same period last year. However, the revenue from operations showed a robust growth of 14%, reaching ₹37,440 crore compared to ₹32,804.6 crore in Q1 FY23. The quarter also experienced a one-time loss of ₹3,416.3 crore in Q1 FY24.
The consolidated revenue increased by 4.0% sequentially, and the EBITDA margin expanded to 52.7%, indicating successful execution of their strategic plans.
EBITDA grew by 18.9% to ₹19,746 crore, and the EBITDA margins expanded by 212 basis points to 52.7%. The company added 5.6 million new 4G customers and achieved the highest-ever postpaid customer additions in a single quarter, reaching an industry-leading average revenue per user (ARPU) of ₹200.
The mobile revenues of Bharti Airtel grew by 12.4% YoY due to improved realization and significant additions to their 4G customer base. The company’s revenues saw a substantial increase of 15.8% YoY, driven by strong demand for data and connectivity solutions, along with emerging competencies.
The company reinforced its leadership position in the postpaid segment, adding a record 0.8 million net new customers in the June quarter, resulting in a total base of 40.4 million postpaid customers.
Bharti Airtel also achieved remarkable success in the homes business segment, recording a revenue growth of 25.4% YoY by catering to the rising demand for high-speed and reliable broadband services in India. The digital TV segment maintained a customer base of 15.9 million at the end of the quarter, thanks to market-specific strategies, simplified pricing, and a convergence portfolio.
Despite the mixed financial performance, the company’s shares ended marginally lower at ₹871.70 apiece on the NSE.