Airtel Q4 net up 3x to Rs 2,008 cr on tariff hike, exceptional income

Consolidated revenue rises 22.3% YoY to Rs 31,500 crore, ARPU up 9.2% sequentially and over 22% YoY to Rs 178

Bharti Airtel reported a near three-fold increase in its net profit to Rs 2,008 crore in fourth quarter FY 22 led by gains from tariff hike and exceptional income. In the same quarter last year Airtel had posted a net profit of Rs 759 crore.

Consolidated revenue for the quarter rose 22.3 per cent to Rs 31,500 crore on a year-on-year basis while average revenue per user (ARPU) grew 9.2 per cent sequentially and by over 22 per cent on a year on year basis to Rs 178.

Mobile service providers undertook a 20 per cent tariff hike last November resulting in revenue growth for all the companies. Airtel’s fourth quarter result was also boosted by exceptional income of Rs 906 crore which included gains from sale of telecom tower assets and settlement with a strategic vendor.

At an operating level the company registered a 27 per cent year on year growth in profit to Rs 15,998 crore while operating margins rose by a modest 1.9 percentage point to 50.8 per cent.

Airtel said it continues to gain market share in the 4G segment and its total customer base in the 4G segment has crossed over 200 million at the end of fourth quarter. Over the last year it added 21.5 million 4G customers which is a 12 per cent growth over the previous year. Its average data per user at 18.8 GBs/month too is the highest among

peers.

During the quarter the company also rolled out 7000 towers to increase connectivity and improve network experience. Overall quarterly capex however saw a 12 per cent decline on a year on year basis to Rs 5,997 crore while the free cash flow rose 74 per cent to Rs 10,001 crore in the same period.

“The mobile business revenues were up 9.5 per cent as we saw the full flow through of tariff increase. Airtel continues to have the highest ARPU at Rs 178. Our Homes and enterprise business continue to exhibit very strong growth momentum, reflecting the resilience of our overall portfolio. Our strong balance sheet and cash flows have enabled us to further repay some of our spectrum liabilities ahead of schedule and improve our leverage,” Airtel’s managing director and chief executive officer (South Asia), Gopal Vittal said in a statement.