Bharti Airtel Q1 Preview: PAT may jump 55% YoY; strong ARPU growth seen

economictimes.indiatimes.com:

Bharti Airtel is projected to post strong results for the first quarter, compared with the same period a year ago. However, sequential earnings growth may be limited, impacted by foreign exchange losses and increased taxes. During the quarter, revenue from operations is expected to grow by an industry-leading 11% year-on-year, according to an average estimate from six analysts.

However, this figure is estimated to be just under 1% quarter-on-quarter. Profit After Tax (PAT) is anticipated to grow 55% year-on-year, as per the average estimate from four analysts. On a sequential basis, it could decline by up to 22%.

For Airtel's Africa business, performance may be impacted by the devaluation of the Nigerian currency, although underlying growth is expected to be robust. The Average Revenue Per User (ARPU) for the quarter is projected to be strong, growing at 2.9% quarter-on-quarter to Rs 199.Nuvama Analysts from Nuvama predict a 1.1% quarter-on-quarter revenue growth in the first quarter, with a 2.9% growth for the India business and a 2% decrease (in INR terms) for the Africa business. They also anticipate the EBITDA margin to remain consistent, with a contraction in the Africa business and an increase in network operational expenditure.

Kotak Institutional Equities expect a 3% quarter-on-quarter growth in India's wireless business revenue due to a 2% ARPU increase to Rs 198. They also foresee a return to growth for the DTH sector due to the IPL boost. Axis Securities foresee a quarter-on-quarter improvement due to an increase in India and Africa's wireless revenue.