Bharti Airtel (Airtel) is expected to report strong numbers for its second quarter (Q2) ending September 30, with multifold jump in its consolidated net profit compared to the same quarter of the previous financial year.
According to analysts, the company’s revenue growth, EBITDA margins, finance costs, and most importantly average revenue per user (ARPU) will also be interesting to watch as its rival Reliance Jio has recently reported a seven per cent rise in its ARPU for the Q2 to ₹195.
In July, all three private telecom operators, including Bharti Airtel, Reliance Jio, and Vodafone-Idea, increased entry-level tariffs by 11-25 per cent. Airtel increased its minimum tariff to ₹199 from ₹179 earlier (for 28 days), and maximum to ₹3,599 from ₹2,999 earlier.
According to analysts, industry-leading ARPU and support from other businesses bode well for Airtel’s revenue growth during the quarter.
Airtel’s consolidated net profit in Q1 (ended June 30) had more than doubled to ₹4,160 crore as compared to ₹1,613 crore in the corresponding period last year. Its consolidated revenue from operations had grown by 2.8 per cent year-on-year to ₹38,506 crore as compared to ₹37,440 crore in Q1 last financial year.
Shares of Airtel were trading at ₹1,662.55 apiece on the BSE at 9:57 am on Monday, down 0.11 per cent from the previous close.