Bharti Airtel has reported impressive financial results for the first quarter of FY25, with a substantial increase in net profit and a modest rise in revenue. The company's consolidated net profit surged by 158% year-on-year to Rs 4,160 crore for the quarter ending June 30, 2024, surpassing analysts' expectations significantly.
Revenue from operations saw a 3% increase compared to the same period last year, reaching Rs 38,506 crore. While this growth was slightly below the forecasted Rs 38,523 crore, it still reflects a solid performance. In the corresponding quarter of the previous fiscal year, Bharti Airtel reported a profit of Rs 1,612 crore and revenue of Rs 37,440 crore.
The revenue growth was somewhat tempered by currency devaluation in Africa, which impacted the overall figures. Despite this, Bharti Airtel's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) for the quarter was Rs 19,944 crore, marking a slight 1% increase from the previous year. However, EBITDA margins saw a decline of 95 basis points to 51.8% year-on-year.
In the Indian market, revenue for the first quarter rose by 10% year-on-year to Rs 29,046 crore. The growth in mobile revenues was driven by an increase in the Average Revenue Per User (ARPU), which stood at Rs 211, up from Rs 200 in the same quarter last year. This improvement was attributed to the company's efforts to attract high-value customers and provide enhanced services. The increase in ARPU and customer growth reflects Bharti Airtel's focus on delivering value and expanding its customer base.
Airtel's Managing Director, Gopal Vittal, highlighted the company's strong performance, noting, “We continue to deliver industry-leading ARPU growth along with increased average data usage per customer. The first quarter was another steady period, with India's revenue growing 1.9% sequentially and EBITDA margins expanding to 53.7%. Our focus on cost efficiencies is evident in our strong operating leverage.”
The company's homes business experienced an 18% year-on-year revenue increase, bolstered by healthy customer additions. During the quarter, Airtel added 348,000 new customers, bringing its total customer base to 8 million. Additionally, Airtel Business saw an 8% year-on-year revenue growth, driven by its integrated service offerings. Revenue from Digital TV remained stable, with a customer base of 16.3 million at the end of the quarter.
In Africa, revenue in constant currency increased by 19% year-on-year. Despite this, EBITDA margins in the region decreased by approximately 313 basis points to 45.3%. Vittal commented on the performance, saying, “Africa continues to show strong underlying revenue growth in constant currency. Our digital portfolio is developing well and is expected to drive accelerated growth, further strengthening our diverse portfolio.”
Following the announcement, Bharti Airtel’s shares closed 1.66% lower at Rs 1,469 on the NSE, reflecting a mixed market reaction to the quarterly results.
