Bharti Airtel ’s financials for the September quarter are likely to announce increased competition as well as Telenor deal.
The net loss could increase in the range of Rs 110-770 crore and analysts believe that rising diesel cost could have also impacted the financials.
Telecom companies use diesel as fuel to operate generators for tower operations. The higher cost of diesel due to increased crude prices in the global market is expected to put pressure on the sector.
Here is a list of different analyst view from the results today.
One of the experts expects profit after tax (PAT) to extend to Rs 121.62 crore for September quarter as compared to the previous quarter, and on a year on year basis, it will be a decline from profit level.
Higher Sequential fall to happen due to Postpaid re-pricing, continued prepaid ARPU (average revenue per user) down-trading, seasonality and initial impact of JioPhone monsoon consequences. It expects 3% QoQ decline into reported India wireless revenues (3.5% organic).
“The above revenue decline should translate to a 16% QoQ and 45% YoY fall in India wireless EBITDA. Continued sequential improvement in Bharti Africa top-line (up 7% QoQ) expected.”
One of the analysts expects a net loss of Rs 110 crore for the September quarter. It expects revenue to rise 2% to Rs 20,120 crore as ‘decline in India wireless business could be arrested’.
India wireless margins are likely to contract 370 bps to 24.7% impacted by an increase in network cost and EBITDA loss contribution from Telenor. Africa margin is expected to see a marginal 20 bps dip to 35%.
Also, there is to expect consolidated EBITDA margin to contract 220 bps QoQ to 33.1%,” analysts wrote in a report. While another expert expects a wider net loss of Rs 341.6 crore on the back of continued.
Meanwhile, another expert expects a net loss of Rs 770 crore for Q2 on pricing pressure, weak seasonality and Telenor impact as well.
Q2 weak seasonality, pricing pressure (prepaid & postpaid), JioPhone offers and the full impact of Telenor to lead to 7% QoQ decline in ARPU and 3% QoQ decline in India wireless revenues (mitigated by the full impact of Telenor acquisition) competitive intensity.
“India mobile revenue could decline 1.3% QoQ to Rs 10,350 crore adversely affected by the continued competitive intensity and the partial exit of the low-ARPU customer base of Telenor. Increased network operating charges led by aggressive rollouts rise in diesel prices, and the 1-month impact of higher tower rentals post-Vodafone-Idea merger should dent India wireless EBITDA”.
Get The Latest Stock Updates, Equity Tips, Share Market Tips, Stock Market Tips, Intraday Tips @ Investelite Research