Bharti Airtel Q1 preview: Telco likely to see 24.5% sequential fall in PAT; ARPU may remain flat

MUMBAI: Telecom major may see a 24.5 per cent sequential fall in consolidated net profit to Rs 573 crore in the April-June quarter. The company’s PAT is expected to fall due to muted ARPU and higher expenses for the same period.

The company will report its June quarter earnings on Tuesday.

The telecom operator is expected to report a meager 1.5 per cent QoQ rise in consolidated revenues due to muted net addition of subscribers in the quarter.

In the year-ago quarter, Bharti Airtel had reported a consolidated net loss of Rs 15,933 crore due to one-time provisioning for AGR dues owed to the government and the impact of the national lockdown imposed to contain the spread of Covid-19.

Analysts expect the company to report flat average revenue per user (ARPU) for the quarter ended June at Rs 145/per user, as was the case with peer Reliance Jio Infocomm. The muted ARPU performance is a result of the disruption to subscriber additions in the quarter due to the second wave of Covid-19.

“India wireless revenues and ARPU are anticipated to stay stable sequentially. Mixed improvement will be offset by free recharges and moderation in data subscriber addition due to the second Covid wave,” said brokerage firm

Services.

On the operating front, analysts expect the company to report a consolidated operating profit of Rs 12,658.6 crore as against Rs 12,415.8 crore reported in the previous quarter. Brokerage firm Kotak Institutional Equities expects the company’s margins to expand by 23 basis points sequentially to 48.1 per cent.

Shares of Bharti Airtel ended 0.6 per cent higher at Rs. 565.2 on the National Stock Exchange.

The post Bharti Airtel Q1 preview: Telco likely to see 24.5% sequential fall in PAT; ARPU may remain flat first appeared on WorthStocks - Share Market Tips.

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