Bharti Hexacom Q1 Review - Ebitda Hurt By Higher Costs, Which Should Stabilise Going Forward: ICICI Securities

ICICI Securities Report

Bharti Hexacom Ltd.’s Q1 FY25 revenue grew 2.3% QoQ to Rs 19 billion, in line with our estimates; however, Ebitda (adjusted Ind AS) was a miss with decline of 1.7% QoQ to Rs 7.3 billion due to a sharp jump in costs. Higher cost was due to booking the entire 5G-related cost in P&L, and one-offs in selling, general and administrative.

It anticipates cost inflation to moderate going forward.

Bharti Hexacom had strong free cash flow generation (post finance cost) of Rs 5.9 billion, partly aided by working capital release of Rs 4.45 billion; net debt dipped Rs 5.75 billion to Rs 40 billion, which is healthy.

We have raised our EPS estimates by 2-7% factoring in earlier-than-expected tariff increase. Our target price has been revised to Rs 1,150 (from Rs 1,075) as we increase our FY26E EV/Ebitda multiple to 14 times (from 13.5 times). Maintain Add.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.