Airtel Q4 net profit falls to Rs 2,072 cr on devaluation of Nigerian currency

The telco attributed the drop in net profit to the devaluation of African currencies during the period, particularly the Nigerian Naira.
Image used for representational purposes only.
Image used for representational purposes only.FILE Photo | EPS

NEW DELHI: Bharti Airtel, country’s second largest telecom service provider, reported a dip of 31.1% year-on-year (YoY) in its consolidated net profit to Rs 2,072 crore for the March quarter of the financial year 2023-24.

The telco attributed the drop in net profit to the devaluation of African currencies during the period, particularly the Nigerian Naira. Its consolidated revenue grew by 4.4% annually to Rs 37,599 crore for Q4FY24. However, its India revenues are up by nearly 13% to Rs 28,513 crore for the quarter.

Airtel’s consolidated EBITDA witnessed an increase of 4.2% YoY to Rs 19,590 crore in Q4’24. EBITDA margin is 52.1% in Q4’24 vs. 52.2% in Q4’23. “We ended the year on a strong note with consistent performance across all businesses, both on customer metrics as well as financial parameters. India revenue (adjusted for Beetel) grew by 1.7% with EBITDA margin expanding to 54.1%, despite one day less in the quarter.

Consolidated performance was impacted primarily by the devaluation of the Nigerian Naira,” said Gopal Vittal, MD of Bharti Airtel. “We added 7.8 million smartphone customers and delivered an industry leading ARPU of Rs 209. Our relentless focus on improving customer experience has resulted in 20% churn reduction during the quarter. Our simple and clear strategy coupled with razor-sharp focus on execution enabled us to end the quarter with life-time high market share across all businesses.”

The company said its revenue from mobile increased by 12.9% YoY due to improved realisation as well as strong 4G/5G customer additions during the year. Its ARPU for the quarter stood at Rs 209 compared to Rs 193 in Q4FY23 due to the company’s focus on acquiring quality customers and mix improvement. On a sequential basis, the APRU was higher than `208 in the December quarter.

Airtel added 0.8 million new postpaid customers in the quarter, taking its customer base to 51.2 million (including IoT). The company added 28.6 million new 4G/5G data customers to its network over the last year, an increase of 12.8% YoY.

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