Bharti Airtel Q3 Review - Strong India Business; Average Revenue Per User Gains Continues: Axis Securities

Axis Securities Report

In Q3 FY24, Bharti Airtel Ltd.'s reported revenue of Rs 37,900 crore, up 2.3% QoQ and up 5.85% YoY, which stood below our expectations. This was mainly on account of the devaluation of Nigeria's Naira and other currencies during the period.

Bharti Airtel posted an operating profit of Rs 19,815 crore leveraging higher 4G conversions and a better service mix. Its operating margins, however, declined marginally by 40 basis points. Its net profit for Q3 FY24 stood at Rs 2,876 crore, registering a robust growth of 37% QoQ.

Valuation & Recommendation

We maintain our 'Buy' rating on the stock given the company's superior margins, stronger subscriber growth, and higher 4G conversions.

We value the stock at Rs 1,400/share based on SOTP valuation and the target price indicates a robust upside of 23% from the current market price.

Key Risks to our Estimates and TP

• The cut-throat competition may reduce the market share, leading to reductions in the revenue growth momentum.

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