Bharti Airtel stock trades lower ahead of Q4 results; here#39;s what brokerages expect

Stocks

Research firm ICICI Securities expects continued traction in subscriber addition for Airtel at around 90 lakh for the quarter. It expects Q4FY21 to witness the impact of IUC going to zero, impacting both topline and costs.

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Bharti Airtel share price was trading in the red in the morning session on May 17 ahead of its Q4 results. The telecom major is expected to declare its March quarter earnings later today. Bharti Airtel is expected to report a strong operating print and moderation in average revenue per user (ARPU) with interconnect usage charge (IUC) going to zero, according to media reports.

Analysts will keep a keen eye on the management’s commentary on ARPU trajectory and non-wireless business.

The stock was trading at Rs 555.30, down Rs 5.25, or 0.94 percent at 09:54 hours. It has touched an intraday high of Rs 567.90 and an intraday low of Rs 551.20.

Research firm ICICI Securities expects continued traction in subscriber addition for Airtel at around 90 lakh for the quarter. It expects Q4FY21 to witness the impact of IUC going to zero, impacting both topline and costs.

“The reported ARPU is likely to see around 6.5 percent QoQ decline (around 9 percent decline owing to IUC impact offset by around 2.5 percent like to like growth) at Rs 155,” it said.

According to a report by Axis Securities, the telecom company may show positive net DTH additions and higher commission cost and S&M cost which will lead to a lower margin expansion of 661 basis points (bps) at 49 percent. EBITDA is seen at Rs 13,195 crore, up 29.8 percent YoY,” the brokerage said.

Airtel Africa on May 12 reported doubling of profit after tax for the March 2021 quarter to USD 154 million (over Rs 1130 crore), amid broad-based growth across key services and markets.

The underlying revenue for the fourth quarter ended March stood at $ 1,038 million (about Rs 7,619 crore), rising 15.4 per cent year-on-year on a reported currency basis.

“Growth was recorded across all regions — Nigeria up 21.9, East Africa up 23.5 percent and Francophone Africa up 10 percent; and across key services, with revenues for voice up 11 percent, data up 31.2 percent and mobile money up 35.5 percent,” the statement said.

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