Brokerages Weigh in on Bharti Airtel’s Q2 Results: Check What They Say

Brokerages Weigh in on Bharti Airtel's Q2 Results: Check What They Say
Bharti Airtel reported its second-quarter results for the period ending September 30, 2023, yesterday, highlighting an industry-leading ARPU of Rs 203, supported by robust 4G/5G customer additions. Brokerages have swiftly analyzed and presented their views and opinions on Airtel‘s performance during the quarter. Let’s take a quick look at what the brokerages have to say in the following story.

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Also Read: Bharti Airtel Reports Q2 Net Profit of Rs 1,341 Crore; ARPU at Rs 203

Jefferies

Jefferies stated that Airtel’s encouraging performance continued in 2Q, with higher postpaid/4G subscriber additions, a higher margin in India, higher growth in Africa, and strong FCF (Free Cash Flow) generation as key highlights. Therefore, Jefferies maintained a Buy rating with a revised PT of Rs 1,085 saying although it missed profit estimates, revenue/EBITDA exceeded expectations. An improving subscriber mix is favourable for ARPU, and healthy growth is noted in India’s non-mobile and Africa segments.

Goldman Sachs

Goldman Sachs highlighted Airtel’s robust revenue growth at 11 percent YoY and strong subscriber momentum. They raised their subscriber estimates for both wireless and home broadband while lowering near-term ARPU due to tariff hike delays. The firm maintained a Buy rating on Bharti Airtel with an increased target price of Rs 990, up from Rs 920 earlier, based on subscriber forecasts to account for continued share gains in India’s wireless sector.

Also Read: Airtel Africa Expands Customer Base, Reports Profits Despite Currency Challenges

UBS

UBS commented that Bharti Airtel’s Q2FY24 results were largely in line with minor misses compared to estimates. The report pointed out that Africa experienced a 9 percent QoQ decline, coming in 4 percent lower than estimate due to currency devaluation. Additionally, the report highlighted Airtel’s net additions and the absence of tariff hikes or pricing actions during the quarter, which resulted in an ARPU of Rs 203. The brokerage also compared ARPU with competitors’ growth. UBS considered it an uneventful quarter and maintained a neutral rating with a PT of Rs 1,010.