NEW DELHI: Bharti Airtel, country’s second-largest telecom service provider, reported a record profit of Rs 4,160 crore for the first quarter ended June 30, 2024. The company’s net profit was Rs 1,612.5 crore in the same period last year
In contrast, Bharti Airtel’s consolidated net profit was at Rs 2,068.2 crore for the previous quarter ending March 2024. The company’s consolidated revenues for the quarter reached Rs 38,506 crore, reflecting a 2.8% year-on-year (YoY) increase and a 2.4% quarter-on-quarter (QoQ) growth.
However, the company noted that its revenue was impacted by currency devaluation in Africa. In India, the company’s revenues rose by 10.1% YoY to Rs 29,046 crore, driven by a 10.5% YoY increase in mobile revenues. This growth was attributed to improved realisations and sustained customer additions during the quarter.
The consolidated EBITDA rose 1.0% YoY to Rs 19,944 crore in Q1FY25. EBITDA margin was 51.8% in Q1FY25, compared to 52.7% in Q1FY24. Airtel’s consolidated net income before exceptional items for the quarter stood at Rs 2,925 crore, while the consolidated net income after exceptional items was Rs 4,160 crore. The average revenue per user (ARPU) for the quarter was Rs 211, up from Rs 200 in the same quarter last year.
“Q1FY25 was yet another steady quarter, with India revenue growing at 1.9% sequentially and sustained EBITDA margins expansion to 53.7%. Our stringent focus on driving cost efficiencies is reflected in strong operating leverage. Africa continues to deliver strong underlying constant currency revenue growth. India operations added 6.7 million smartphone customers and reported an improved ARPU of Rs 211. Our postpaid strategy continues to yield results with 0.8 million net adds,” said Gopal Vittal, MD of the company.
Regarding tariff hikes, Vittal said the industry saw much-needed action on tariff repairs, which is positive for the industry’s financial health amid ongoing large network capital expenditures. He emphasised that the industry needs an ARPU of over Rs 300 at a minimum for financial stability.