Bharti Airtel Q2 Results Preview

Bharti Airtel, one of India’s leading telecommunications companies, is set to announce its second-quarter results on Tuesday. Here’s a breakdown of what you should know:

Net Profit Forecast

Analysts predict that Bharti Airtel will report a significant 46% increase in net profit for the three months ended September 30, amounting to INR 31.40 billion ($376.4 million). This is compared to the net profit of INR 21.45 billion recorded in the same period last year.

Revenue Forecast

According to a poll conducted by FactSet, second-quarter revenue is expected to show a 10% growth from the previous year, reaching INR 381.21 billion.

Key Areas of Focus

India Mobile

Bharti Airtel’s mobile services in India demonstrated impressive growth in the first quarter, with profit increasing by 46% year-on-year to INR 45.19 billion. The customer base also saw a 3.4% increase, reaching 338.6 million, while average revenue per user rose by 9.0% to INR 200 per month. Investors are keenly observing the performance of this crucial segment.

Margin

The company’s earnings-before-interest-and-taxes margin rose to 26.9% in the first quarter, compared to 23.8% in the previous year. Investors are particularly interested in any further margin improvements, considering the challenging global business landscape affected by high inflation.

Capital Expenditure

Bharti Airtel’s capital expenditure rose significantly in the first quarter, increasing by 64% year-on-year to INR 104.86 billion. Investors are closely monitoring the impact of this burden on the company’s financials.