ScoutQuest Concall Decoder | Bharti Airtel Ltd

Visit www.scoutquest.in to receive real-time high-quality AI-powered insights for the stocks you track
delivered to you on WhatsApp

Below contents are machine-generated, kindly exercise diligence.

GO TO: Read Full Transcript

// Outline For the impatient

Bharti Airtel Limited reported strong financial performance in Q3 FY25, with consolidated revenue
reaching Rs 45,129 crore, a 19.1% YoY and 8.8% QoQ increase, driven by growth in India and Africa,
and the consolidation of Indus Towers. India revenue rose by 24.6% YoY, supported by tariff hikes and
a robust home business. The company achieved a consolidated EBITDA of Rs 24,880 crore with a
55.1% margin and a net income of Rs 5,514 crore, up 121.3% YoY. Operationally, Airtel added 6.5
million smartphone users QoQ, with data consumption growing by 23.2% YoY. The homes segment
saw an 18.7% revenue increase, adding 674,000 customers. Airtel Business grew by 8.7% YoY,
focusing on digital services. Future plans include moderating capex, expanding the postpaid base, and
enhancing digital services. Concerns include short-term pressure from exiting low-margin businesses
and the need for further tariff hikes. The company emphasizes quality customer acquisition, digital
capabilities, and disciplined capital allocation, with a focus on debt reduction and strategic
investments.

// Key Take Aways For the academic

## Bharti Airtel Limited (BHARTIARTL) Q3 FY25 Earnings Call Key Takeaways:

**Current Financial Performance:**

* **Consolidated Revenue:** Rs 45,129 crore, rising 19.1% YoY and 8.8% QoQ, propelled by strong
India business, growth in Africa, and the consolidation of Indus Towers for 43 days.
* **India Revenue:** Rs 34,654 crore, marking a rise of 24.6% YoY and 9.8% QoQ, driven by residual
tariff hikes, a robust home business, and Indus Towers consolidation.
* **Consolidated EBITDA:** Rs 24,880 crore, with a margin of 55.1%.
* **Consolidated EBITDAaL:** Rs 21,474 crore, showcasing a 47.6% margin, a new metric reflecting
lease obligations as committed expenses.
* **Consolidated Net Income (before exceptional items):** Rs 5,514 crore, surging by 121.3% YoY.
* **Net Debt-to-EBITDAaL:** 1.56 times, illustrating improved financial leverage.
* **Prepayment of Spectrum Dues:** Rs 3,626 crore prepayment for 2016 spectrum, settling all high-
cost dues over 8.65% interest.

**Operational Performance:**
* **Mobile:**
* India ARPU stands at Rs 245, an increase from Rs 208 in Q3 FY24, driven by tariff hikes and data
monetization.
* Added 6.5 million smartphone users QoQ and 25.2 million YoY, now constituting 75.8% of the mobile
base.
* Postpaid net additions of 0.6 million, totalizing 25.3 million customers.
* Data consumption grew by 23.2% YoY, averaging 24.5 GB per user/month.
* Network expansion included 5,200 towers and 16,300 broadband stations this quarter.
* **Homes:**
* Revenue increased by 18.7% YoY.
* Added 674,000 customers, totaling 9.2 million, backed by FWA expansion.
* Expanded home passes by 1.8 million in this quarter.
* Content partnerships added ZEE5 to Xstream Play, now offering 22 OTT apps.
* **Airtel Business:**
* Revenue grew by 8.7% YoY despite global challenges in wholesale voice and messaging sectors.
* Domestic growth driven by digital offerings like cloud, security, and IoT.
* Partnered with Z-scaler for Airtel Secure Digital Internet.
* **Nxtra Data Centers:**
* Implementing AI to enhance operational efficiency.
* Focused on intelligent and sustainable infrastructure.
* **Digital TV:**
* Revenue of Rs 761 crore.
* Customer base of 15.8 million.
* Gained market share via strategic pricing and convergence offerings.
* Partnered with Glance for enhanced smart TV experience on Xstream devices.

**Future Outlook:**

* **Capex:** Expecting moderation towards FY26 with reduced spending versus FY24.
* **Mobile:** Aiming to grow postpaid base to 50 million with potential tariff adjustments at the industry
level.
* **Homes:** Maintaining growth pace through FWA, fiber rollout, and convergence initiatives.
* **Airtel Business:**
* Shifting focus to digital services like cloud, security, and IoT.
* Exiting low-margin voice and wholesale segments, affecting top-line but not EBITDAaL significantly.
* **Airtel Finance:**
* Formed a partnership with Bajaj Finance to tap into Airtel’s distribution and Bajaj’s underwriting
expertise.
* Aim to broaden the user base, provide omnichannel access to financial products, and increase credit
offerings.
* **Airtel Payments Bank:**
* Performing well with an average Rs 4,600 crore GMV.
* 87 million monthly transacting users suggest significant potential for growth.
* **Data Centers:** Observing M&A opportunities but no immediate plans.
* **GPU as a Service:** Taking a cautious approach in this emerging segment.

**Concerns:**

* **Airtel Business:** Facing short-term top-line pressure by exiting low-margin businesses.

**Other Important Points:**

* **Focus on Quality Customers:** Emphasizing upgrades to higher-end plans and postpaid options.
* **Digital Capabilities:** Utilizing AI and digital tools to enhance customer experience, network
 efficiency, and reduce spam.
* **Fiber Rollout:** Aggressively expanding fiber infrastructure remains a core goal.
* **FWA Strategy:** Strategic deployment intended to supplement fiber rollout and capture market
share.
* **Disciplined Capital Allocation:** Emphasizing debt reduction, increased dividends, and prudent
investment strategies.

//Try ScoutQuest's AI-based Portfolio Tracker for FREE For the genuis

There are over 5000 stocks listed on the Indian stock exchanges, but a typical investor/trader holds
only a few stocks, and with millions of insights, news, videos, social media posts etc. being published
each day, it can get really difficult to keep track of the information that matters. ScoutQuest's AI bots
listen to all concalls, TV interviews, and read all news, exchange filings, and cherry-pick high-quality
insights from these millions of publications online on different sources and then use the power of
Artificial Intelligence to determine what's relevant to the stocks that you hold and selectively deliver
actionable and easily understandable insights to you on WhatsApp at lightning-fast speeds.

Click here to TRY NOW FOR FREE

Disclaimer, T&C