Bharti Airtel on Wednesday posted a net loss of Rs 15,933.1 crores for the quarter ended June 30. The company had reported a net loss of Rs 2,392.2 crores for the corresponding period last year. Results included exceptional items loss of Rs 11,745.7 crore including provisioning for AGR dues.

The results beat Street expectations, with higher operating revenues and growing EBITDA margins.

Bharti AirtelQ1 FY21Q4 FY20Q1 FY20QoQ%YoY%
Total Income24419.224644.721032.4-0.92%16.10%
Total expenditure13530.813557.512503.8-0.20%8.21%
Net Loss-15191.2-4977-2392.2
values in crore rupees

Bharti Airtel is the 2nd largest telecom operator in India after Reliance Jio Infocomm. With operations in 18 countries across Asia and Africa, it is a company whose offerings include 2G, 3G and 4G wireless services, mobile commerce, fixed line services, high speed home broadband, DTH and enterprise solutions.

In a statement issued by the company, it was noted that a provision of Rs 10,744 crore had been recorded as a provision towards paying of AGR dues. 

Average Revenue per User (ARPU) for Indian telecom operations, an important metric for operators, increased marginally from Rs 154 in the previous quarter to Rs 157. It was aided by higher quality users along with higher tariffs, according to the company. Results by Reliance Jio is expected in the coming days.

Some key takeaways from the quarterly report are:
  • Consolidated quarterly revenue grew 15.4% YoY to Rs 23,939 crore
  • Consolidated Profit after Tax (PAT) before exceptional items stood at Rs 197.6 crore compared to Rs 72.6 crore in Q4 FY20, up 172%.
  • Consolidated EBITDA up 3% QoQ, from Rs 10639.2 crore in Q4 FY20 to Rs 10326.3 crore.
  • Zee5 and Airtel have been deepening their collaboration to bring best-in-class digital entertainment to customers in India
  • Data usage per user reached a level of 16.3 GB per month, up 73% YoY, due to more employees working from home

“We are going through an unprecedented crisis caused by COVID. Despite this, our teams have served the country well and kept our customers connected. Data traffic growth surged by 73% YoY even as 4G net additions slowed down to 2 million caused by supply chain shocks in the device eco system”, Gopal Vittal, MD and CEO of India-South Asia said.

Bharti Airtel and Reliance Jio continue to fight it out for the top telecom operator spot in India. With Airtel confident about paying off its AGR dues, the company has a winning chance in the soon to be 2 player Indian telecom industry. Higher ARPU shows that Airtel is attracting a very healthy customer base over competitors. 

Bharti Airtel(NSE:BHARTIARTL) shares closed at Rs 546.95, down 3.4% at market close on Thursday. You can read the complete financial statement here.

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