Airtel Q2 Results: Profit down 37% YoY; ARPU at Rs203
Consolidated net profit (after exceptional items) for India’s second-largest telco fell for the second consecutive quarter to Rs 1,340.7 crore in the July-September quarter from Rs1,612.5 crore in the preceding quarter and Rs 2,145.2 crore a year earlier.
Airtel’s net income (before exceptional items), though, rose 44.2% on-year and 2% sequentially to Rs 2,960 crore.
“This decision (court ruling) does not alter the total amount of VLF allowed as deduction over the licence period but creates a timing difference wherein later years would have a higher deduction,” the company said in its earnings statement Tuesday.
As a result, Airtel has made a tax provision of Rs 226.3 crore and included the interest charge on the matter amounting to Rs 1,350 crore as part of the exceptional items, it added. “Additionally, exceptional items include a charge of Rs 2,203 million (Rs 220.3 crore) on account of re-assessment of regulatory levies.
The tax credit on above re-assessment amounting to Rs 554 million is included under the tax expense (credit).”
Consolidated revenue was Rs 37,044 crore, down 1% sequentially from Rs 37,440 crore in the fiscal first quarter and 7.3% higher from a year earlier when it had reported Rs 34,527 crore.
“Our India revenue continues to gain momentum and grew sequentially by 2.4%. Our consolidated revenue however was impacted by the devaluation of the Nigerian naira.
Consolidated Ebitda margins expanded to 53.1%, supported by a strong war on waste programme,” managing director Gopal Vittal said in a statement.
Airtel’s average revenue per user (ARPU) for the quarter rose to Rs 203, up 1.5% from Rs 200 in Q1FY24 and was in line with market estimates. Its subscriber base grew to 342.3 million, with 3.7
