Bharti Airtel Q3 net down -2.81% yoy at Rs830cr on exceptional gains from discontinued operations in Dec-20 quarter

8 Feb 2022 , 10:48 PM

Bharti Airtel Ltd reported 12.63% yoy growth in total sales revenues for the Dec-21 quarter on consolidated basis at Rs29,867cr. On a sequential basis, the revenues were up by 5.44%.

During the December 2021 quarter, revenues from the India mobile services were up 19% yoy on the back of higher ARPU. Airtel Business revenues were up 13.4%, while the homes business grew at a robust 40.4%.

During the quarter 4G customers were up 29.9 million yoy while mobile ARPUs increased from Rs.146 to Rs.163. For the quarter, mobile data consumption was up 33.8% while consumption per customer at 18.3 GB per month. During the quarter, Bharti Airtel paid Rs.15,519cr to the government towards deferred spectrum.

For the Dec-21 quarter, the operating profits were up on a yoy basis by 56.57% at Rs6,974cr. During the quarter, the consolidated EBITDA stood at Rs14,905cr while the EBITDA margins stood at 49.9% up by 398 bps yoy.

India business crossed Rs.10,000cr EBITDA for the first time. Consolidated EBIT stood at Rs6,345cr while EBIT margins stood at 21.2%. Google has committed to invest $1 billion into Bharti. Operating margins increased on the back of lower access charges from 16.80% in Dec-20 quarter to 23.35% in the Dec-21 quarter. Operating margins were higher on a sequential basis by 86 bps.

Net Profit after tax (PAT) for the Dec-21 quarter was down -2.81% yoy at Rs830cr on the back of exceptional gains in the comparable Dec-20 quarter despite a strong operating performance. During the Dec-20 quarter, Bharti Airtel had booked profits from discontinued operations to the tune of Rs987cr, which had boosted the base and led to a reduction in PAT growth on a yoy basis.

PAT margins tapered from 3.22% in the Dec-20 quarter to 2.78% in the Dec-21 quarter. The PAT margins were lower by 122 bps on a sequential basis. Bharti Airtel’s reported 35.6cr customers in India and 12.6cr customers in Africa.

Financial highlights for Dec-21 compared yoy and sequentially

	Bharti Airtel
Rs in Crore	Dec-21	Dec-20	YOY	Sep-21	QOQ
Total Income (Rs cr)	₹ 29,867	₹ 26,518	12.63%	₹ 28,326	5.44%
Operating Profit (Rs cr)	₹ 6,974	₹ 4,454	56.57%	₹ 6,369	9.49%
Net Profit (Rs cr)	₹ 830	₹ 854	-2.81%	₹ 1,134	-26.84%
Diluted EPS (Rs)	₹ 1.48	₹ 1.56		₹ 2.06
Operating Margins	23.35%	16.80%		22.49%
Net Margins	2.78%	3.22%		4.00%