Bharti Airtel Q1FY25 Results: The country’s leading telecom operator Bharti Airtel has announced excellent quarterly results. During the three months of April-June 2024, the company’s profit increased 2.5 times to Rs 4,160 crore. Whereas during the same period last year i.e. April-June 2023, this figure was Rs 1,612.5 crore. A major reason for this increase in Bharti Airtel’s profit is the increase in average revenue per user (ARPU). Apart from this, the company has also made an exceptional profit of Rs 735 crore during the June quarter.
Increase in revenue, decrease in capital expenditure
During the April-June 2024 quarter, Bharti Airtel’s consolidated revenue from operations grew 2.8 per cent to Rs 38,506.4 crore as compared to the same quarter last year. This amount was Rs 37,440 crore in the same quarter last year. During the June quarter, the company’s consolidated capital expenditure was reduced by a huge 23.44 per cent to Rs 8,007 crore. In comparison, the company’s consolidated capital expenditure in the three months of April-June 2023 was Rs 10,459 crore. During the same period, Bharti Airtel’s capital expenditure (capex) in India fell 27 per cent year-on-year (YoY) to Rs 6,781.2 crore, from Rs 9,327 crore in April-June 2023.
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Margins improved due to cost reduction: Vittal
According to the company, its revenue has increased by 1.9 percent on a sequential basis during the first quarter of June FY 2024-25. At the same time, the company’s revenue in India grew by 10.1 percent year-on-year to Rs 29,046 crore. During the same period, the company’s EBITDA margins have increased to 53.7 percent. The company’s Managing Director (MD) Gopal Vittal said that due to the focus on efficiency in terms of cost, the operating leverage has improved significantly. Along with this, he has also talked about consistent revenue growth in Africa’s business. Apart from this, the company has also made a net exceptional gain of Rs 735 crore during the June quarter. This also includes the relief in interest imposed on tax due to the decision of the Supreme Court and the benefit from the disinvestment of Airtel Lanka. During the same period, the company’s net debt increased by 14 per cent to Rs 31,098.3 crore, from Rs 27,245.5 crore during the quarter ended June 2023.
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5.4% growth in ARPU
The reduction in capex and increase in average revenue per user (ARPU) are the major reasons for the company’s performance during the June quarter. Along with the increase in the number of customers, ARPU is also considered an important measure of improvement in the performance of telecom companies. During the June quarter, the ARPU of the company’s mobile service in India saw a growth of 5.4 percent and it increased to Rs 211 per user, whereas in the same quarter last year this figure was Rs 200 per user. Airtel claims that during the June quarter, the number of its postpaid connections increased by 8 lakh and it is the market leader in this segment.
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Average monthly data usage increased to 23.7 GB
During the June quarter, Airtel’s customer base grew 7.3 percent year-on-year to 56.75 crores from 52.89 crores in the same period last year. Talking about the Indian market only, the company’s customer base grew 7 percent to 40.92 crores in the June quarter from 38.28 crores in the same quarter last year. During the June quarter, the total number of 4G and 5G customers of the company grew 13 percent to 25.94 crores from 22.97 crores in the quarter ended June 2023. According to the company, during the same period, the average monthly data usage of one of its customers (data usage per customer per month) has increased by 12.4 percent to 23.7 GB. During the June quarter, the number of employees of the company in India has increased by 2,328 and has increased to 19,801.
