At the bourses, Bharti Airtel
dipped 24.8 per cent in the quarter under review. In comparison, the S&P BSE Sensex gained 9 per cent in the same period, ACE Equity data show.
According to analysts at Emkay, Airtel's India wireless revenues shall rise sequentially, boosted by a 43 lakh increase in data subscribers vs stable data subscribers in the last quarter. The brokerage expects ARPU to rise 1 per cent QoQ, accompanied by return of some voice subscribers in the base.
Overall, Airtel's Q2FY21 revenue is likely to rise 17 per cent YoY (up 3.2 per cent QoQ) to Rs 24,716.1 crore from Rs 21,131.3 crore reported in Q2FY20 while net loss may contract to Rs 107.3 crore from Rs 23,045 crore reported in Q1FY21. Earnings before interest, tax, depreciation, and ammortisation (Ebitda) is seen rising 22 per cent YoY to Rs 10,773.7 crore from Rs 8,637.2 crore in the year-ago quarter.
"Data volume shall continue to accrue benefits of the lockdown and rise 7.5 per cent QoQ. The home broadband segment is likely to continue to see increased traction. Ebitda margins shall expand only 11bps sequentially to 43.6 per cent, due to Covid-19-related cost saving in SG&A coming back in the base," the brokerage said.
The brokerage expects subscriber addition of around 30 lakh for Airtel in the quarter under review, driven by reverse migration of labourers to cities. Notwithstanding seasonality, it sees Airtel's ARPU witnessing around 2 per cent QoQ growth at Rs 160, aided by higher data based usage upgrades.
Further, Indian wireless revenues are expected to witness 2.6 per cent QoQ growth at Rs 13,213 crore. The company's India non-wireless revenues traction, especially broadband and enterprise, is expected to remain robust. Consequently, among the headline numbers, consolidated revenues are expected to be up 2.5 per cent QoQ at Rs 24,526 crore (up 16.1 per cent YoY) while net loss may contract to Rs 167 crore.
On the operational front, the brokerage expects sequentially flattish India Ebitda margins at 44.3 per cent. Reported Ebitda at Rs 10,660 crore is expected to grow 2.4 per cent QoQ (up 20.6 per cent YoY) with margins expected at 43.5 per cent, flattish sequentially.
Kotak Institutional Equities
Meanwhile, Kotak Institutional Equities sees Bharti Airtel
moving into the black in Q2FY21 with net profit of Rs 75.7 crore, helped by 1.2 per cent sequential rise in ARPU.
The brokerage expects 3.5 per cent sequential rise in Airtel's India wireless revenues and 4 per cent QoQ growth in Ebitda. “As offline recharge activity is likely to have improved (post the Covid-led disruption in the previous quarter), we expect reported subs to be higher by 2.9 million QoQ,” it said.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.