INSUBCONTINENT EXCLUSIVE:
ICICI Securities has given a buy rating to Bharti Airtel with a coverage price of Rs 610
Mobile revenues would benefit from a steep tariff hike of 20-40 per cent taken across prepaid plans with effect from December 4, 2019
However, such steep tariff increase will lead to SIM consolidation, and relative performance may vary
This quarter print will help in understanding the winner from the tariff hike, based on increment revenue market share, which will be the
result of multiple factors such as strength on network, subs loyalty, brand etc
The brokerage expects Bharti Airtel to emerge winner from tariff hike, and is likely to report a better print
ARPU for Bharti will see a strong increase of 11.6 per cent QoQ to Rs 150
The share price moved up by 4.42 per cent from its previous close of Rs 423.95
The last traded price is Rs 443
likely to rise 10.9 per cent QoQ to Rs 103 billion
16.5 per cent QoQ to Rs 76 billion (EBITDA margin up 235 bps quarter on quarter (QoQ) to 43.4 per cent)
Consolidated revenue and EBITDA seen at +7 per cent QoQ to Rs 236 billion and 10.9 per cent QoQ to Rs 103 billion, respectively
It may likely report positive PBT, but a net loss of Rs 10 billion
The brokerage is factoring in forex loss of Rs 4 billion, and a higher capex for the quarter
FinancialsFor the quarter ended December 31, 2019, the company reported consolidated sales of Rs 21947.10 crore, up 3.86 per cent from last
quarter sales of Rs 21131.30 crore and up 6.96 per cent from last year same quarter sales of Rs 20519.20 crore
The company reported net profit after tax of Rs -312.60 crore in the latest quarter.
