Bharti Airtel reported a 37.5% decrease in its consolidated net profit for the second quarter (July-September) of FY24, dropping to ₹1,340.7 crore from ₹2,145.2 crore the previous year. This decline comes despite a 7.3% year-on-year increase in consolidated revenue, which reached ₹37,044 crore, driven by robust 4G and 5G customer additions.
What Happened? A one-time charge of ₹1,350 crore, related to a Supreme Court ruling on variable license fees, impacted the results. Additionally, a ₹220 crore charge arose from the re-assessment of regulatory levies. Airtel’s average revenue per user (ARPU) increased by 6.8% year-on-year to ₹203. In India, the company’s revenue for Q2FY24 grew by 10.9% year-on-year to ₹26,995 crore, with mobile services contributing ₹20,952 crore.
Gopal Vittal, Bharti Airtel’s managing director, highlighted the company’s solid revenue growth and improved margins. He also mentioned the impact of the Nigerian Naira’s devaluation on consolidated revenue.
Airtel expanded its network by adding 11,100 new towers during the quarter. The company’s ARPU for the September quarter surpassed its competitors, standing at ₹203 compared to Jio’s ₹181.7 and Vodafone Idea’s ₹142.
Airtel also saw a surge in postpaid users, adding 1 million in the last quarter, bringing the total to 214.6 million in India. Mobile data consumption per customer in India rose to 21.7 GB per month.
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Price Action: Bharti Airtel shares were trading 0.27% lower at ₹911.95 on early Wednesday shortly after markets opened for trading.
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