Bharti Airtel Shares Gain Close To 3% Post Q4 Numbers; Later Pare Gains

Shares of telecommunications service provider firm Bharti Airtel in early trade on Wednesday (May 18, 2022) gained close to 3% to day’s high price of Rs.727.15 as against the previous close of 707.05 apiece on the NSE.Later, though the shares at around the time of writing this copy at 10:40 am pared gains and traded weak by 0.35% at Rs.704.65 per share on the NSE.
The company on Tuesday reported its Q4Fy22 earnings.As per ICICI Direct, the company’s Q4FY22 topline performance was marked by tariff hike benefits flowing in the wireless business revenues and driving the margins expansion.Consolidated topline came in at Rs.31,500 crore, up 5.5% QoQ (tad below estimates of 7% QoQ growth).Indian wireless revenues were up 9.5% QoQ at Rs.16,617 crore, led by pass through of tariff hike driving ARPU, which came in at Rs, 178, up 9.7% QoQ in line with RJio’s ~10% growth).On the other segment of India business, Homes Services (broadband) revenues were up 10% QoQ at Rs.876 crore and Airtel business (enterprise) revenues were up 1.8% QoQ at Rs.4180 crore.

Overall margins at of 50.9%, up 169 bps QoQ with India wireless margins at 50.6% (up 128 bps QoQ)Overall Indian margin was up 106 bps QoQ at 50.8%.The margins expansion was driven by tariffhike led pass through.Africa margins was atat 49.6%, up 30 bps QoQ
ICICI Direct sees positive impact coming through and holds the view saying that “Airtel continues to report a stable performance on the Indian wireless business front with better KPIs in terms of subscribers’ stickiness and margins.Management commentary on overall growth drivers would be key monitorable ahead”.