Bharti Airtel shares rise 2% after strong net profit growth in Q1FY25
Bharti Airtel initially jumped almost 2% in early morning trade on BSE a day after its consolidated net profit for the June quarter rose more than two-and-a-half times from a year earlier and doubled sequentially, helped by an exceptional gain, along with an improvement in average revenue per user (ARPU) and lower finance costs.
Airtel shares were eventually trading 0.61% higher at Rs 1474.95 on the exchange.
Goldman Sachs sees Airtel’s growth sharply accelerating on the back of last month’s headline tariff hike and estimates the Sunil MIttal-led telco’s India business sustaining around 20% EBITDA growth for the foreseeable future.
It added that the 20% sequential decline in Airtel’s capex in the April-June period suggests the telco’s 4G/5G roll-outs could be nearing completion.
“Bharti has generated US$2.3 billion of FCF (free cash flow) in the last 12 months (excl. prepayment of spectrum) and with our expectation of a further decline in capex intensity coupled with impact from higher tariffs, we see room for meaningful improvement in Bharti’s FCF and returns profile,” the global brokerage added.
Airtel posted a consolidated net profit of Rs 4,159.9 crore after factoring in a net exceptional gain of Rs 735 crore in the quarter ended June 30. Its consolidated revenue rose 3% from a year earlier to Rs 38,506.4 crore, with currency devaluation in Africa weighing on the growth.
According to Goldman Sachs, Airtel’s 4G and postpaid user additions remained strong in the fiscal first quarter. “We see market share
