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India’s second-largest telecom operator Airtel has impressed investors as it beat all Street estimates and reported a 48% growth in yearly profits.
For the quarter ended in March 2023, the company reported revenues of Rs 36,009 crores, up 14% YoY and marginally higher on a sequential basis. The company witnessed strong and consistent performance delivery across its portfolio as consolidated EBITDA was at Rs 18,807 with a margin of 52.2%, an improvement of 144 bps. PAT for the quarter came in at Rs 4,226 crores, up 14% YoY but up 62% on a sequential basis.
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For the entire year of FY23, the company reported revenues of Rs 1.39 lakh crores, up almost 20% YoY. The majority of the company’s revenues came from its Mobile Services in the Indian market as the same was over Rs 75,000 crores, growing 21% and accounting for 55% of total revenues. However, revenues from Digital TV Services and Mobile services in South Asia declined during the year.
The telecom had an ARPU of Rs 193 which is one of the highest in the industry. Network expenses were the highest expense of the company, which grew more than 10% in FY23, but Sales and Marketing expenses grew the most. Surging 37% during the year, resulting in a 15% surge in total expenses. EBITDA improved by 23.4% during the year, while the EBITDA margin improved by 170 bps.
Profit for the year grew to Rs 12,287 crores, up by 48% when compared to Rs 8,305 crores reported in the same period last year.
The Board of Bharti Airtel has recommended a dividend of Rs 4 per share for FY23. At the time of reporting, the stock of Airtel was trading around Rs 789 per share.
- Aman Agarwal
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