Bharti Airtel Shares Surge Over 3% as Q3 Results Impress Investors

Bharti Airtel Q3 Result: Bharti Airtel’s share price witnessed a notable surge of over 3% in early trading on Tuesday, buoyed by the telecom giant’s impressive performance in the third quarter of FY24. The company’s strong Q3 results, highlighted by substantial growth in net profit and revenue, have garnered positive investor sentiment.

In its quarterly financial report, Bharti Airtel announced a consolidated net profit of ₹2,442.2 crore for Q3FY24, marking a substantial 54% increase compared to the same period last year. The company’s revenue for the quarter stood at ₹37,900 crore, reflecting a robust year-on-year growth of 5.9%.

The stellar performance was primarily driven by Bharti Airtel’s India operations, which recorded quarterly revenue of ₹27,811 crore, up by an impressive 11.4% compared to the previous year. However, the company faced challenges due to the devaluation of African currencies, impacting its consolidated numbers for the quarter.

Despite these challenges, Bharti Airtel demonstrated resilience and reported an average revenue per user per month (ARPU) of ₹208, representing a substantial 8% increase from the same quarter last year. The company attributed this growth to its strategic focus on acquiring high-value customers and improving realizations.

Consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at ₹20,044 crore, with an improved EBITDA margin of 52.9%, reflecting the company’s operational efficiency and profitability.

Commenting on the quarterly performance, Gopal Vittal, Managing Director of Bharti Airtel, emphasized the company’s strategy of premiumization, which led to the addition of 7.4 million 4G/5G customers and achieved an industry-leading ARPU of ₹208. However, Vittal highlighted the need for tariff adjustments to enhance industry health and ensure sustainable returns.

Investors have responded positively to Bharti Airtel’s strong performance, with the company’s share price witnessing significant gains. Over the past month, Bharti Airtel’s stock has surged by over 8%, while over the past three months, it has recorded an impressive growth of more than 21%. Moreover, the stock has delivered remarkable returns of over 44% in the past year.

At 9:45 am, Bharti Airtel’s share price continued to trade higher, showing a 2.35% increase at ₹1,139.95 apiece on the BSE, indicating continued investor optimism and confidence in the company’s growth trajectory.