The price of Bharti’s airtel clothes fell at the beginning of trading on February 9 the day after the company came out with December quarter income.
Bharti Airtel on February 8 reported a 27 percent surprise in sequential decline in consolidated net income at Rs 829.6 Crore for the quarter.
Telecommunications operators reported a 5.4 percent increase in the quarter in consolidated revenue at Rs 29,866 Crore.
The income performance described to the operation level because the consolidated operating profit rose 6.3 percent in the quarter to Rs 14,905 Crore.
Indian business income grew 5.1 percent in the quarter to rs 20,912 crore. The Indian business also reported an increase in operating profit of 5.6 percent in the quarter to Rs 10,406 Crore.
African business reported strong growth because revenue rose 6 percent in sequence to Rs 9,105.3 Crore in the quarter reported. Arm’s operating profit also grew 8.3 percent in the quarter to Rs 4,519 Crore.
This is what the broker said about stock and company after December quarter income:
CLSA.
Broking House has made a purchase rating on stock with targets at RS 915 because income and EBITDA appear above estimates.
It has raised revenue and EBITDA estimates 1-4% but cuts profits and estimates the annual growth profit of the consolidated EBITDA compound of 15% (CAGR) by FY24.
Jefferies.
The research company has maintained a purchase rating at target prices at Rs 910.
A 8% in the upward quarter in India Mobile Arpu (average income per user) is a positive surprise. Customer mixture increases further; Reflection of network investment.
Houses, company and African segments were also positively surprised. The FCF generation (free cash flow) strong and leverage is at 2.7x which is comfortable.
The research company raised estimates of income / EBITDA to 2% and expected the company to provide 20% EBITDA CAGR through FY22-24.
Goldman Sachs.
The Broking House has maintained a rating of purchases with targets at RS 885 because Q3 income is in line with high income visibility. It was a quarter of the benefits of market share.
The market share of income has now expanded 275 bps for the last 4 quarters.
Broking House estimates the wireless segment to provide revenue of 21% / 35% FY22-24 / EBITDA CAGR.
Scale of digital assets, increasing balance sheet profiles must help multiples absorb higher.
Nomura.
Home Research has maintained a buying call on stocks with target prices at RS 855 on the back of the good Q3.
The higher ARPU pushed up further market share, while Capex rejected Qoq.
Customer income and market share up to 65 bps and 45 bps, respectively, Qoq. The customer’s mix continues to increase, even though the reported additional customer is reported.
At 9:18 hours Bharti Airtel quoted at Rs 705.80, down Rs 3.05 or 0.43 percent in BSE.
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