Bharti Airtel Q1 profit surges 158% to Rs 4,160 crore, beats expectations

Airtel Q1 results: Bharti Airtel, India's second-largest telecom operator, reported a stellar first-quarter profit on Monday, significantly surpassing market expectations. The company attributed its strong performance to an increasing number of users opting for its premium 4G and 5G services, which offer faster speeds and higher margins.

For the quarter ending June 30, 2024, Bharti Airtel's consolidated net profit surged more than twofold to Rs 4,160 crore, exceeding analysts' average estimate of Rs 3,869 crore, according to LSEG data. This robust profit growth underscores the company’s strategic focus on premium offerings and efficient cost management.

The company’s revenue from operations saw a notable increase of nearly 3 per cent, reaching Rs 38,506 crore, aligning closely with analysts' projections of Rs 38,513 crore. This growth was driven by strong performance across its diverse business segments, including mobile services, Airtel Business, homes, and digital TV.

A critical metric for telecom operators, the Average Revenue Per User (ARPU), rose to Rs 211 during the quarter, marking a 1 per cent sequential growth and a 5.5 per cent increase year-over-year. This improvement in ARPU highlights Airtel’s success in attracting high-value customers and enhancing service offerings.

In contrast to its market leader, Reliance Industries' Jio Infocomm, which prioritises expanding its subscriber base with low-cost plans, Airtel's strategy focuses on delivering premium services. This approach has not only bolstered ARPU but also solidified Airtel’s position in the competitive telecom market.

Mobile services 

Airtel's mobile services in India posted a revenue of Rs 29,046 crore, up 10.5 per cent YoY. This growth was driven by strong 4G/5G customer additions, an improved customer mix, and increased ARPU. The number of 4G/5G data customers rose by 29.7 million YoY and 6.7 million QoQ, now comprising 73 per cent of Airtel’s overall mobile customer base.

Homes business

The homes segment continued its growth momentum, with revenues increasing by 17.6 per cent YoY due to strong customer additions. The company added 348,000 new customers in Q1, bringing the total customer base to 8 million.

Airtel Business

This segment saw a revenue increase of 8.3 per cent YoY, driven by growth in the domestic portfolio and emerging digital products.

Digital TV

Revenues from digital TV services grew by 5.0 per cent YoY, supported by customer additions and service improvements.

Bharti Airtel's consolidated EBITDA for Q1 stood at Rs 19,944 crore, with an EBITDA margin of 51.8 per cent. Despite a slight decline in margins YoY, the company's operational efficiency remains strong, with India’s EBITDA margins at 53.7 per cent. However, the consolidated EBIT fell by 7.2 per cent YoY to Rs 9,355 crore, reflecting challenges in maintaining margin growth.

Airtel's continuous focus on enhancing network infrastructure was evident, with the addition of approximately 6,300 towers and 15,500 mobile broadband stations during the quarter, ensuring seamless connectivity and superior customer experience.

Gopal Vittal, Managing Director of Bharti Airtel, highlighted the company’s strategic achievements, stating, “Q1FY25 was yet another steady quarter with India revenue growing at 1.9 per cent sequentially and sustained EBITDA margins expansion to 53.7 per cent. Our stringent focus on driving cost efficiencies is reflected in strong operating leverage.”