Bharti Airtel Q3 Results Preview: Net profit likely to jump 35%, ARPU may improve by Rs 5 to Rs 195

Bharti Airtel is likely to report a 35.2 per cent increase in net profit to Rs 2,900 crore for the quarter ended December 2022 compared with the previous three months, according to Zee Business research. The New Delhi-based telecom major will report its quarterly numbers on Tuesday, February 7. 

The analysts estimate the revenue of Bharti Airtel — led by billionaire Sunil Bharti Mittal — to grow 1.7 per cent sequentially to Rs 35,100 crore.

The company is expected to report expansion of 0.6 per cent in its domestic business, and one per cent in its African unit, according to Zee Business research. 

Bharti Airtel's margin — a key measure of profitability for businesses — is estimated to remain unchanged at 51.3 per cent for the third quarter of the current financial year compared with the July-September 2022 period, with the Indian operating margin expected to improve by 70 basis points, according to the research. 

It is expected to report a 1.6 per cent quarter-on-quarter increase in earnings before interest, taxes, depreciation and ammortisation (EBITDA) to Rs 18,000 crore. Investors will keenly look out for the management's commentary on average revenue per user, a key metric used to determine the income a telecom operator earns from each of its subscribers. 

According to Zee Business research, Bharti Airtel's ARPU is estimated to improve by Rs 5 to Rs 195 compared with the July-September period. 

Bharti Airtel shares underperformed the overall market with a gain of 0.9 per cent in the quarter ended December 2022, a period in which headline indices Sensex and Nifty50 rose 5.9 per cent each.    

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