InvestorQ : How were the Bharti Airtel numbers for the Dec-20 quarter?
swati Bakhda made post

How were the Bharti Airtel numbers for the Dec-20 quarter?

Sam Eswaran answered.
11 months ago

Actually, the Bharti numbers were much better than expected both in terms of the top line sales growth recorded as well on the basis of the bottom line impact on the company. For the Dec-20 quarter, Bharti Airtel reported a very massive turnaround and reported a net profit of Rs.854 crore as compared to reporting a net loss in the Dec-19 quarter.

For the top line, it has been a case of volumes and ARPUs. In the last few months, it is Bharti Airtel that has been emerging as a sure shot winner in the telecom race. Bharti has been getting the better of Reliance Jio in terms of fresh customer additions as well as in ARpus. That led Bharti Airtel Q3 revenues to surge by 24% to Rs.26,518 crore.

The data game that Jio started way back in 2016 has now been perfected by Bharti Airtel also even as both Bharti and Jio are benefitting from the consistent loss of market share by Idea Vodafone. The top line growth came on the back of higher data volumes and improved ARPUs or average revenues per user.

Airtel has not only growth in India but its Africa franchise has been doing well too. While the Africa mobile business grew 20% in the Dec-20 quarter, its India mobile business saw top line growth of 30% on better market share even as rapid improvement in ARPUs gave an edge. EBITDA was also up 34.12% to a record level of Rs.12,102 crore in the quarter.

EBITDA margins expanded from 42.28% to 45.64% in the Dec-20 quarter when compared on a yoy basis. The net profit of Rs.854 crore is critical as Bharti had made a huge net loss in the Dec-19 quarter as well as the sequential Sep-20 quarter. Even as Bharti is monetizing assets to the extent possible, it is clear that the AGR issues have been put behind by Airtel.