Airtel Q1 net profit flat on year; ARPU rises to Rs200 vs Rs193 in Q4
Airtel’s consolidated net profit for the fiscal first quarter rose around a modest 0.3% from a year earlier, supported by strong 4G user additions and data consumption growth, despite a currency devaluation in Nigeria. But net profit fell over 46% sequentially to Rs 1,612 crore, stung by losses suffered by Airtel’s Africa unit in the April-June period due to the Nigerian currency devaluation.
The absence of tariff hikes also weighed in on the results. The Sunil Mittal-led telco, in which SingTel owns less than 30%, missed estimates as analysts were expecting a net profit of over Rs 2,355 crore.
Consolidated revenue grew 14.1% on-year and 4% sequentially in the April-June period to Rs 37,440 crore, helped by strong sequential growth in ARPU — a key performance metric — to Rs 200. “Our consolidated revenue grew sequentially by 4%, and EBITDA margin expanded to 52.7%, underscoring the simplicity and execution of our strategy…our focus on winning quality customers and driving premiumization has helped us add 5.6 million new 4G customers and the highest ever postpaid customers in any one quarter,” Airtel managing director Gopal Vittal said in an official statement Thursday.
He added that the company exited the quarter with an industry-leading ARPU of Rs 200. The homes, enterprise, and digital businesses, also continued to exhibit strong growth momentum, reflecting the resilience and strength of our overall portfolio, Vittal said.Airtel shares closed 0.66% lower at Rs 871.95 on BSE Thursday.
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