the stock to 'Add' from 'Buy' but concurrently raised the price target to Rs 1,575 from Rs 1,500. The adjustment reflects a nuanced view of the company's financial performance and market position following the company's recent earnings report.
Bharti Airtel's performance in India saw a robust 10.2% year-on-year (YoY) growth in EBITDA, with its mobile services EBITDA growing 12.2% year-on-year. This uptick came despite the company incurring some expenses related to the rollout of 5G services.
However, the non-mobile segment's EBITDA growth slowed to 3.4% YoY in Q1 FY25. Despite this slowdown, the company expressed optimism about the sector's growth prospects.
Comparatively, Bharti Airtel's EBITDA growth is close to that of its rival, RJio, which reported 10.7% YoY growth. Bharti Airtel has demonstrated consistent revenue growth across its mobile services, indicating its strong execution capabilities and its success in expanding market share.
The company's performance after the recent two tariff hikes has been remarkable, with high incremental market share gains, a trend that stakeholders will watch over the next three quarters.
The financial report also highlighted Bharti Airtel's free cash flow (FCF) generation of Rs 59 billion. This figure is particularly significant after the company made a substantial pre-payment of Rs 79 billion towards spectrum dues.
Additionally, Bharti Airtel's leverage ratio has improved quarter-on-quarter. The report suggests that the company plans to use its excess capital to further deleverage its balance sheet and for dividend payouts, with the aim of enhancing shareholder value.
This article was produced and translated with the support of AI and reviewed by an editor. See our Terms & Conditions for more details.
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Telecom company Bharti Airtel's profit in the fourth quarter (January-March) of FY 2024 fell 31.08% year-on-year (YoY) to ₹ 2,071 crore. The company's consolidated net profit was ₹ 3,005 crore in the same quarter a year ago. Airtel has released its fourth quarter and annual results today i.e. on 14 May.
The company has also announced a final dividend of ₹ 8 per share for FY 2024. Companies give a part of the profit to their shareholders, it is called dividend. Before the result came, Airtel's share closed 0.086% higher at ₹ 1,287.05. In the last one year, it has given a return of 61.48%.
Income increased by 4.4% on an annual basis
The consolidated revenue from the company's operations i.e. income has increased by 4.4% on an annual basis. Revenue stood at ₹37,599 crore in the fourth quarter of FY24. Revenue stood at ₹36,009 crore in the same quarter a year ago i.e. in the fourth quarter of FY23.
Consolidated profit means the performance of the entire group. The results of companies come in two parts - standalone and consolidated. In standalone, the financial performance of only one unit is shown. Whereas, in consolidated or consolidated financial report, the report of the entire company is given.
Bharti Airtel was started in 1995
The Government of India started distributing licenses for mobile service for the first time in 1992. The company's founder Sunil Mittal understood this opportunity and in collaboration with French company Vivendi, acquired licenses for Delhi and surrounding areas. In 1995, Mittal formed Bharti Cellular Limited to offer cellular service and started working under the Airtel brand.
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