Should you dial in Bharti Airtel post Q4 results?
The average revenue per user (ARPU) continued to be the best in the industry as Q4FY21 ARPU came in at Rs 145
Shares of telecom major Bharti Airtel were trading lower by 1.5% in early trades on May 18, a day after the company declared its Q4 results.
On a consolidated basis, Bharti Airtel’s net profit stood at Rs 759 crore in Q4 March 2021 compared with a net loss of Rs 5,237 crore in Q4 March 2020. The consolidated revenues at Rs 25,747 crore grew 17.6% YoY on a comparable basis and 11.9% YoY on a reported basis. EBITDA rose 28.9% to Rs 12,583 crore in Q4 FY21 over Q4 FY20. EBITDA margin increased to 48.9% in Q4 FY21 compared with 42.4% in Q4 FY20.
The average revenue per user (ARPU) continued to be the best in the industry as Q4FY21 ARPU came in at Rs 145 versus Rs 135 in Q4FY20.
CLSA | Target price: Rs 730 | Upside: 35%
CLSA is of the opinion that the company gained more-than-expected 4G data subscribers. ARPU, net of IUC, although was down 0.8% QoQ and up 7.4% YoY. It feels that 4G penetration of 56% of its own subscribers assures growth.
Citi | Target price: Rs 685 | Upside: 26%
Citi believes that overall, Q4 was in line with India mobile EBITDA a shade below. Adjusted pre-tax profit of Rs 1,580 crore was ahead of estimates. The company’s profit was boosted by Rs 440 crore of net exceptional gains.
Goldman Sachs | Target price: Rs 655 | Upside: 21%
Bharti continues to outperform peers, with the company’s revenue market share higher by 110bps/390bps over the last one/five quarters. Short-term headwinds to earnings due to COVID-19 (moderation in subscriber adds) and competition (ARPU pressure). Bharti’s wireless business to deliver 20%+ revenue and EBITDA growth for the next two years. The market is under-appreciating a ‘market share re-allocation’ scenario, and one of the two outcomes – tariffs moving up, or market share re-allocation, is highly likely in the near term.
UBS | Target price: Rs 655 | Upside: 21%
UBS is of the view that the company posted a healthy set of results, with the telecom firm outperforming Jio on most metrics. Impact of COVID on subscriber adds and ARPUs are the key monitorable going ahead.
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