Bharti Airtel's Q1 profit skyrockets over 150% to ₹4,160 crore
What's the story
Bharti Airtel, a leading telecom company, reported a significant 158% year-on-year increase in its net profit for the first quarter of FY25.
The net profit rose to ₹4,160 crore from ₹1,612 crore in the same period last year, beating market expectations.
This substantial surge was primarily driven by exceptional items. However, even without the exceptional items, the telco's Q1 profit stood at ₹2,925 crore, which is a substantial gain year-over-year.
Revenue increase
Bharti Airtel's revenue grows in April-June quarter
In addition to the profit surge, Bharti Airtel's revenue for the April-June quarter also saw a 2.8% on-year increase, rising to ₹38,506 crore from ₹37,440 crore.
The company reported a net exceptional gain of ₹735 crore during this quarter.
This included a gain of ₹1,399.1 crore due to a favorable judgement by the Supreme Court of India and another gain of ₹274 crore from the divestment of Airtel Lanka.
Financial impact
Foreign exchange loss and user revenue impact Airtel's earnings
During Q1 FY25, Bharti Airtel faced a foreign exchange loss of ₹938.7 crore due to currency devaluation in its group subsidiaries.
However, the company's average revenue per user (ARPU) per month saw a 5.5% year-on-year increase to ₹211 from ₹200 a year ago.
Airtel's subscriber base reached 409 million in the April-June quarter. It also reported an increase in its 4G/5G data customer base by 29.7 million YoY, making up 73% of the overall mobile customer base.
Business growth
Airtel's homes business and customer additions soar
Bharti Airtel's homes business delivered a robust revenue growth of 17.6% YoY, driven by healthy customer additions.
The telco's focus on digitization and acquiring high-value customers led to 348,000 customer additions in Q1 FY25, bringing the total base to 8 million users.
This growth demonstrates Airtel's successful strategy in expanding its customer base and enhancing its digital services.
Revenue stability
Airtel Business and Digital TV show steady growth
Airtel Business, another segment of Bharti Airtel, delivered revenue growth of 8.3% YoY, led by growth in the underlying domestic portfolio.
Meanwhile, revenue from Digital TV remained stable with a 16.3 million customer base at the end of the quarter and revenues up by 5% YoY.
These figures indicate a steady performance across different business segments within the company.
Today, Bharti Airtel's stock closed 1.88% down at ₹1,465.70 while the headline indices Sensex and Nifty crashed nearly 3%.