Airtel reported a healthy set of numbers.
- Consolidated topline came in at | 34,527 crore, up 5.2% QoQ, 21.9% YoY. India wireless revenues were up 4% QoQ (up 24.8% YoY) at | 18958 crore, led by ARPU, which came in at | 190, up 3.6% QoQ, driven by higher number of days and subscriber mix improvement. Overall sub base saw a modest addition of 0.5 mn QoQ at 327. 8 mn. It witnessed healthy 4G Net adds of ~5 mn during the quarter, with 4G data sub base at 210.3 mn. The post-paid subscriber base also saw robust addition of ~283,000 subscribers at 18.3 mn. The India non-wireless segment also posted strong growth
- Consolidated EBITDA was at | 17594 crore, up 6.4% QoQ, with margins of 51%, up 57 bps QoQ led by India wireless margins which were at 52.4% (up 116 bps QoQ), driven by lower SUC charges after new spectrum purchase
- Reported net debt (excluding lease liability) was at ~| 1.57 lakh crore (up | 37769 crore, owing to deferred liabilities of new spectrum
Key triggers for future price performance
- Strategy on tariff hike as its pass through would bolster margins
- Relative market share gain from VIL, given its stressed balance sheet and long term potential driven by growth opportunity from 5G