Bharti Airtel on Monday posted a 168% growth in its net profit for the second quarter of the financial year, boosted by a hike in tariffs across the board during the quarter.

What Happened: India’s fourth-largest company by market cap said it earned a consolidated profit attributable to owners of ₹3,593.2 crore, compared with the ₹1,340.7 crore it earned a year ago. The figure missed expectations of ₹4,656.5 crore, based on an estimate of two brokerages.

Meanwhile, the firm’s revenue climbed 12% to ₹41,473.3 crore, compared with the ₹37,043.8 crore it posted a year earlier. The figure was in line with estimates of ₹41,462.5 crore.

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Airtel and its main competitors — Jio and Vodafone — hiked tariffs during the quarter as they look to shore up their margins in a traditionally price-sensitive market and move towards monetising 5G services. At the cost of losing some subscribers, the hikes will help the three major private telcos improve the industry’s average revenue per user (ARPU), which ranks among the lowest in the world.

Analysts see headroom for more tariff hikes in the next couple of years as yields and ARPU have stayed low relative to the country’s growth in per capita gross domestic product.

Price Action: Ahead of the results, Airtel’s share price ended the trading session 0.057% lower at ₹1,665.05. The stock has gained around 65% so far this year.

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