Bharti Airtel rings loud!

Bharti Airtel announced its Q3FY20 results yesterday after market hours. It’s consolidated revenue was up 10.5% (YoY) at Rs. 21,947 crore. Consolidated EBITDA at Rs 9,350 crore increased 48% and margin increased by 11.4% to 42.6% in the quarter as compared to 31.2% in the corresponding quarter last year. Consolidated EBIT increased by 195% to Rs 2,401 crore.

The consolidated Net Loss before exceptional items was at Rs.1080 crore and net loss after exceptional items for the quarter stands at Rs 1,035 crore.

Consolidated mobile data traffic was at 5,357 PBs, up 73%. India revenue was up 10% at Rs.5,797 crore. Mobile revenues have witnessed a 10% growth led by a strong focus on quality customers, up-trading and in some part benefitted by the recent tariff actions, although the full impact of the tariff actions is yet to be seen. Consequently, ARPU has improved from Rs 128 to 135 Q-o-Q.

Mobile data traffic increased to 5,166 PBs v/s 2,996 PBs (YoY). Mobile 4G data customers increased by 61% to 123.8 Mn. There was a strong 4G customer addition of 21 Mn.

Digital TV revenue witnessed a growth of 16% Y-o-Y on an underlying basis (decline of 23.3% on reported basis due to reporting changes in DTH pursuant to the new tariff order). Airtel Business revenue witnessed a growth of 7% on Y-o-Y basis.

Regarding the payment towards Adjusted Gross Revenue (AGR), the Group had recorded as a liability/provision an aggregate of Rs. 34,260 crore as at September 30, 2019 (of which Rs. 28,450 crore was recorded in previous quarter as exceptional item).

Subsequent to the reporting period the Company has successfully raised Rs. 21,502 crore of funding through a combination of fresh equity issuance via qualified institutional placement and issue of convertible bonds. The company intends to use these proceeds to augment its long term resources and strengthen its balance sheet. Pursuant to the infusion of fresh equity and long-term financing via convertible bonds subsequent to the reporting period ended December 31, 2019 and available liquidity/facilities with the Group, the management has concluded that the previously reported material uncertainty on the Group’s ability to continue as a going concern no longer exists.

The market is happy with the performance. It closed yesterday at Rs.519.10 and today, it opened at the same level but soon hit a new 52-week high at Rs.529.10. Profit booking at that level has now pushed the stock back to Rs.519 levels.