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Analysts predict high single-digit net profit growth for Airtel in Q4

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In Short:

Consolidation in the telecom sector has been good for Airtel, leading to improved returns. Market share gains, higher revenue, and lower costs are expected to boost profits. Analysts predict a 9% increase in net profit and 7% increase in revenue. Airtel’s focus on green energy and potential tariff hikes post-election may further improve financial performance. CEO expects significant growth from 5G adoption by 2025.

Bharti Airtel set to turn the tables with strong fourth-quarter results

It seems like Bharti Airtel (Airtel) has hit the jackpot with the recent consolidation in the telecom sector. After facing weak returns for many years, the company is finally on the brink of a turnaround.

Positive Outlook

The upcoming fourth-quarter results, set to be announced on Tuesday, are expected to showcase Airtel’s market share gains, improvements in organic average revenue per user (ARPU), and controlled costs. These factors are likely to drive up the company’s net profit and EBITDA.

Financial Projections

Analysts are predicting a nine per cent year-on-year jump in Airtel’s consolidated net profit to around ₹3,270 crore, compared to last year’s ₹3,006 crore. Consolidated revenue is also anticipated to increase by seven per cent year-on-year to approximately ₹38,600 crore.

Strategic Moves

During the quarter, Airtel introduced in-flight roaming packs and announced agreements to procure additional renewable energy for its data centre business arm – Nxtra. These initiatives align with the company’s commitment to sustainability and innovation.

Future Prospects

Speculations are rife about a possible tariff hike in the coming quarters, post the general election, which could further boost Airtel’s EBITDA. The company’s focus on tariff repair, especially in the 5G landscape, is expected to drive future growth.

CEO’s Vision

Gopal Vittal, Managing Director and Chief Executive Officer of Airtel, emphasized the importance of tariff repair and the potential impact of 5G technology on the telecom industry. He envisions significant growth opportunities in the sector in the coming years.

Market Performance

Shares of Airtel were trading at ₹1,290.40 apiece on Monday, reflecting the market’s confidence in the company’s strategic direction and growth prospects.

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