Bharti Airtel likely to show improvement in Q2; revenue may rise 17% YoY

Emkay says the company's India wireless revenues shall rise sequentially, boosted by a 43 lakh increase in data subscribers against the stable data subs in the last quarter.

Telecom major Bharti Airtel will announce its September quarter scorecard on October 27 and brokerages expect the company to show some improvement in its numbers.

Emkay Global expects Bharti Airtel's net sales to see a 17 percent year-on-year (YoY) growth while EBITDA and EBITDA margin may rise 21.9 percent and 177 bps YoY, respectively, due to coronavirus-related cost-saving in SG&A coming back in the base.

The company's India wireless revenues shall rise sequentially, boosted by a 43 lakh increase in data subscribers against the stable data subs in the last quarter, the brokerage said.

Emkay expects ARPU to rise 1 percent quarter-on-quarter (QoQ) despite a seasonally weak quarter, accompanied by the return of some voice subscribers in the base.

"Data volume shall continue to accrue benefits of the lockdown and rise 7.5 percent QoQ, while MOU shall see a decline due to seasonality," Emkay said.

The Africa business, as per Emkay Global, should witness a 3 percent sequential revenue rise on the back of a low base due to currency devaluation.

Motilal Oswal Financial Services expects Airtel's ARPU to largely remain flat. It foresees a 4 percent subscriber growth in home broadband and 3 percent revenue growth in enterprise business.

As per Motilal's estimates, the company's adjusted PAT for Q2FY21 may come at Rs 300 crore against a loss of Rs 1,100 crore in Q2FY20. Revenue may see a 16 percent YoY jump.

Brokerage firm Kotak Institutional Equities expects a 15.1 percent YoY jump in the company's net sales.

Kotak said as offline recharge activity is likely to have improved (after the COVID-led disruption in the previous quarter), it expects reported subs to be higher by 29 lakh QoQ.

"We build in a 1.2 percent QoQ (up 21.5 percent YoY) increase in implied ARPU," Kotak said.

For the Africa business, Kotak expects a flat quarter sequentially (up 8.6 percent YoY) on a reported basis.

"Among the other businesses, we expect 4 percent QoQ growth in revenues for the home broadband, 3 percent QoQ growth for the enterprise business, and 2 percent QoQ growth in the DTH business," Kotak said.

Source - Moneycontrol.com

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