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Bharti Airtel Q1 FY24 earnings preview: Topline growth, margin pressure likely

Telecom major Bharti Airtel on Thursday (August 3) will report its first-quarter earnings (Q1 FY24). According to the CNBC-TV18 Poll, the company is expected to achieve a consolidated topline growth of approximately 1.50 percent on a quarter-on-quarter basis.

The company’s revenues are generated from various segments, including its India mobile business, the Africa business, home services like D2H connections, and an enterprise business catering to data centers and more.

Airtel Africa’s numbers have already been released and have exceeded expectations, surpassing both the topline and margin estimates. This positive surprise from Airtel Africa raises the possibility that the consolidated revenues and margins for the overall company may also outperform the earlier set expectations.

In the India mobile segment, revenue growth is anticipated to be around 3-3.50 percent, mainly driven by a 2.50 percent increase in subscriber additions and about a 1 percent rise in the average revenue per user (ARPU).

The subscriber numbers for April and May have already been made public by the Telecom Regulatory Authority of India (TRAI), giving investors a good sense of the expected subscriber growth.

However, the focus will be on tracking the ARPU increment, as earlier in the year, the company raised entry-level prepaid tariffs and removed lower-level entry plans, resulting in a minimum spend of Rs 150 for the cheapest plan. This change is likely to reflect in the ARPU for the current quarter.

Regarding margins, the consolidated basis is anticipated to be 52 percent. The bottom-line figure, which usually fluctuates depending on interest costs, Forex rates, and depreciation, is expected to be approximately Rs 2700 crore according to the CNBC-TV18 Poll. CNBCTV18

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