Bharti Airtel Q3FY22 Preview: Revenue seen at Rs296,311 million, PAT at Rs14,459 million

8 Feb 2022 , 11:34 AM

Result date: 8th February, 2022
Recommendation: Buy
Target price: Rs 843

(Source: IIFL Research)

Bharti Airtel is expected to report 11.7% YoY growth in consolidated revenue to Rs296,311 million and the highest sequential growth in mobile revenues during the quarter. Benefits of price hikes implemented in August 2021 are also likely to reflect in Q3 performance. Upgrades from feature phones to smartphones will also aid the company’s ARPUs (Average revenue per user).  Lower costs of diesel and a revised definition of AGR could drive EBITDA margin in the quarter.

Airtel Africa is expected to post 3.8% QoQ growth in EBITDA in USD terms. Overall performance of Airtel Africa is expected to be stable.

Consolidated net profit may increase 69.4% to Rs14,459 million on a YoY basis.

Important management insights to watch out for:

* Outlook on subscriber adds
* Margin drivers in the future

Rs. Million	December 2021 estimates	YoY change	QoQ change
Revenue	296,311	11.7%	4.6%
EBITDA	146,610	21.6%	6.2%
PAT	14,459	69.4%	27.5%

Source: Company, IIFL Research