Bharti Airtel posts surprise Q3 profit of Rs 86 crore on one-time gain; Arpu slumps 15%

Telecom major Bharti Airtel on Thursday posted better-than-expected financial results for the quarter ended December 31. Profit attributable to the parent plunged 71.81 per cent to Rs 86.20 crore in Q3FY19 over Rs 305.80 crore in the corresponding quarter last year.

The company made an exceptional gain of Rs 1017 crore (net of tax) in Q3FY19 largely on account of deconsolidation of Airtel Payments Bank Limited and reassessment of certain levies.

Analysts in an ET Now poll had estimated a loss Rs 905 crore.


Total revenue of the company, however, increased 1 per cent to Rs 20,519 crore in Q3FY19 over Rs 20,319 crore in Q3FY18. EBITDA slipped 16.90 per cent YoY to Rs 6307 crore during the quarter under review.

Average revenue per user plunged 15.50 per cent YoY to Rs 104 in Q3FY18 over Rs 123 in Q3FY18. However, Arpu jumped 4.10 per cent on a quarter-on-quarter basis.

In a statement, Gopal Vittal, MD and CEO, India & South Asia, said: “Our simplified product portfolio and premium content partnerships have played out well during the quarter, translating into one of our highest ever 4G customers additions of over 11 mn. Our mobile data volume continues to expand, with a YoY growth of 190 per cent. We have deployed 24K broadband sites during the quarter and remain committed to invest in capacities ahead of the demand curve and provide a superior customer experience. Effective this quarter, we have modified our customer base measurement to represent only transacting and revenue generating customers.”

India revenue stood at Rs 14,768.3 crore, down 3.5 per cent compared with Rs 1,53,03.5 crore in the corresponding quarter last year, primarily on account of the sustained pricing pressure in India mobile segment.

Consolidated net debt decreased by Rs 6,836.8 crore to Rs 1,06,367.4 crore against Rs 1,13,204.2 crore sequentially. The net debt-Ebitda ratio (LTM) as of December 31 stood at 4.28 times compared with 4.25 times as of September 30.

The net debt-equity ratio came at 1.50 times as of December end against 1.64 times on a quarterly basis.

”EBITDA decline along with continued investments to build future data capacities have resulted in decline of return on capital employed (ROCE) to 4.7 per cent from 4.9 per cent in the corresponding quarter last year,” Bharti Airtel said.

Raghunath Mandava, MD and CEO, Africa, said: “Airtel Africa’s Gross Revenue grew by 11.2 per cent on a YoY basis. Data traffic grew by 61 per cent, voice minutes increased by 25 per cent and Airtel Money throughput grew by 29 per cent on a YoY basis. Consequently, EBITDA margin has expanded by 1.7 per cent YoY and stood at 37.2 per cent for the quarter. We continue to further invest in strong LTE networks to enhance customer experience and build a competitive advantage.”