Bharti Airtel Ltd posts consolidated net loss of Rs2,866cr in Q1FY20, vs net profit of Rs97cr in Q1FY19 : Misses Estimates

The company’s consolidated revenue stood at Rs20,738cr, up 4.7% yoy and 0.7% qoq.

Aug 01, 2019 01:08 IST India Infoline Research Team

Bharti Airtel Ltd Q1FY20

Consolidated Results Q1FY20: (Rs. in cr)

Q1FY20 YoY (%)
Revenue 20,737.90 4.7
EBITDA 8,288.80 --
EBITDA Margin (%) 40 --
Net Loss (adjusted) 2,866 --
***EBITDA margin change is bps
Bharti Airtel Ltd’s revenue grew by 4.7% yoy and 0.7% qoq to Rs20,738cr against median consensus estimates of Rs21,007cr. EBITDA came in at Rs8,289cr, higher on qoq and yoy basis, although not comparable owing to adoption of Ind AS116. EBITDA margin came in at 40%. Company reported a net loss of Rs2,866cr vs. Rs97cr yoy and Rs107cr qoq. There were exceptional items during the quarter. The street was estimating net loss of Rs1,170cr for the quarter.
  • Adjusting for the exceptional items, the net loss is likely to be wider than the street estimates.
  • Adjusting for the Ind AS116 effect, the revenue and EBITDA are mostly in line with estimates, implying stable EBITDA margins on qoq basis. As per our calculations, Adjusted EBITDA (Rs6,776cr) grew by 2.2% qoq and 0.8% yoy and margins expanded by 53bps qoq to 32.7% (-125bps yoy).
  • India Revenue grew by 0.7% qoq and 2.8% yoy. Africa USD revenues grew by 1.9% qoq and 6.8% yoy. India Mobile services revenue grew by 2.2% qoq and 3.7% yoy.
  • Adjusting for Ind AS116 effect, India EBITDA margin expanded by 90bps qoq (-152bps yoy), Africa EBITDA margin contracted by 36bps qoq (+43bps yoy). India Mobile EBITDA margin contracted by 96bps qoq and 316 bps yoy.
  • Average revenue per user for India Mobile services grew by 4.9% qoq and 22.9% yoy to Rs129.
  • Number of subscribers declined by 0.5% qoq and 18.4% yoy to 2,81,132. Wireless traffic grew by 0.8% qoq and 7.7% yoy to 7,37,108mn (minutes).

Technical View:

Bharti Airtel Ltd is currently trading at Rs. 323.95, down by 13.85 points or 4.1% from its previous closing of Rs. 337.80 on the BSE.
The scrip opened at Rs. 335.70 and has touched a high and low of Rs. 338.50 and Rs. 321.60 respectively. So far 1,19,91,487 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 50 DMA.

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