Bharti Airtel share price rises ahead of June quarter results

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Apart from the numbers, investors will await any update on tariff hikes and the 5G rollout. The company’s capex plans, if any, will also be keenly observed.

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Bharti Airtel share price was up over a percent intraday on August 3 ahead of its June quarter results.

The telecom major is scheduled to come out with its June quarter earnings today which is expected to show COVID-related stress. Sequentially, the numbers may come on a softer side.

Brokerage firms are of the view that the company’s Q1 scorecard may show signs of pressure with overall revenue and ARPU shrinking.

Apart from the numbers, investors will await any update on tariff hikes and the 5G rollout. The company’s capex plans, if any, will also be keenly observed.

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The stock was trading at Rs 575.80, up Rs 10.75, or 1.90 percent at 10:26 hours. It has touched an intraday high of Rs 576.00 and an intraday low of Rs 562.15.

Brokerage firm Emkay Global Financial Services sees a 1.5 percent quarter-on-quarter (QoQ) rise in Airtel’s Q1 net sales. However, PAT may decline as much as 58 percent QoQ, Emkay said.

Also read: Bharti Airtel Q1 results preview: COVID-related stress, update on tariff hike, 5G rollout to be in focus

“India wireless revenues and ARPU are anticipated to stay stable sequentially. Mix improvement will get offset by free recharges and moderation in data subscriber adds due to the second wave of COVID-19,” Emkay said.

Kotak Institutional Equities in a report said Bharti Airtel’s India wireless revenues to moderate to Rs 13,900 crore and EBITDA to decline 4 percent QoQ and a 3 percent moderation in ARPUs to Rs 145 per month, reflecting the impact of lockdowns.

Brokerage firm Motilal Oswal Financial Services expects Airtel’s ARPU to decline by 2 percent QoQ in Q1FY22.

Motilal expects the company’s Indian mobile subscribers to remain flat sequentially. Indian wireless revenue may also remain flat QoQ while there may be a 2 percent revenue growth in the enterprise business.

Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.