Bharti Airtel Q3 Results Review - Moderate Growth But Gaining Share: Motilal Oswal

Motilal Oswal Report

Bharti Airtel Ltd. reported a moderate growth in Q3 FY24, with India mobile Ebitda up 4% QoQ on a 2.5%/3.0% increase in average revenue per user/subs. Consolidated Ebitda grew 1.5% QoQ.

Capex remained flat QoQ and is likely to have peaked out (India capex at Rs 57 billion). As a result, deleveraging continued, with debt repayment of Rs 51 billion on the back of healthy free cash flow generation.

In the near term, Bharti Airtel could see soft earnings growth, led by 4G-led mix benefits, but it has a limited potential for a tariff hike and may see soft market share gains. However, over the next two-three years, Bharti Airtel is well poised to gain from the sector consolidation and tariff hikes and drive strong FCF generation.

Retain 'Buy' on the stock.

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