Bharti Airtel’s Q2 Financial Performance Analysis

Bharti Airtel, a prominent player in the telecommunications sector, released its financial results for the second quarter ended September 30, revealing a notable 37.5% decline in consolidated net profit to Rs 1,341 crore. This figure contrasts with the Rs 2,145 crore net profit reported during the same period last year.

Consolidated Net Income and Revenue

Despite the drop in net profit, the consolidated net income (before exceptional items) for the quarter stood at Rs 2,960 crore, marking a substantial 44.2% increase year-on-year. The quarterly revenue also displayed positive growth, rising by 7.3% to reach Rs 37,044 crore. The company attributed this revenue surge to robust and consistent performance in its India operations.

Managing Director’s Perspective

Gopal Vittal, the Managing Director of Bharti Airtel, commented on the financial results, stating that the quarter witnessed solid revenue growth and improved margins. He highlighted the momentum in India’s revenue, which saw a sequential growth of 2.4%. However, he noted that consolidated revenue was impacted by the devaluation of the Nigerian Naira.

Mobile Average Revenue per User (ARPU) and Subscriber Growth

An essential metric for telecom companies, the mobile average revenue per user (ARPU) saw an uptick, reaching Rs 203 in Q2 2024 compared to Rs 190 in Q2 2023. Bharti Airtel also reported an addition of 7.7 million 4G/5G net subscribers during the quarter, culminating in an “industry-leading ARPU of 203.”

Strong Growth in Postpaid and Homes Businesses

Vittal emphasized the strong growth trajectory in the Postpaid and Homes businesses, noting that the company achieved the highest ever net adds in these segments within a single quarter. He attributed this performance to a consistent strategy focused on quality customers and delivering an exceptional digital experience seamlessly.

The financial results reflect Bharti Airtel’s resilience and strategic efforts to navigate challenges while capitalizing on growth opportunities in the telecommunications landscape.