Tag: Bharti Airtel

Bharti Airtel to procure 1.4 Lakh MWh renewable energy for its Nxtra data centres

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Bharti Airtel Ltd on Wednesday announced that its subsidiary and one of India’s leading data centre companies, Nxtra is set to procure an additional capacity of 140,208 MWh of renewable energy for its data centres.

The subsidiary of Bharti Airtel has entered into a power-wheeling agreement with Ampln Energy and Amplus Energy for the production of additional renewable energy. Through this move, the existing commitment of Nxtra, which is to reduce the company’s carbon footprint through renewable energy sources, has been enhanced annually by almost 99,547 tonne CO2 emissions.

According to the details of the power-wheeling agreements, AmpIn Energy and Amplus Energy will work towards setting up captive solar as well as wind power plants having capacities of 48 MWdc and 24.3 MW, respectively, for Nxtra’s data centres. These data centres are located across multiple states, including Uttar Pradesh, Tamil Nadu and Odisha.

The 25-year agreement is in line with Nxtra’s commitment to achieving its net-zero target of 2031 and further strengthens its credentials as India’s largest chain of green data centres in the country, stated the company in a press release dated February 14, 2024.

The aforementioned initiative adds to Nxtra’s multiple other interventions aimed at reducing absolute scope 1 and 2 greenhouse gas (GHG) emissions across all of its operations by 100% by FY2031.

“These new partnerships reflect our commitment to lead India’s green data centre space and fulfill our commitment to achieve Net Zero emission by 2031. The additional clean energy supply will increase our renewable energy share to approximately 70% in the overall energy mix for our core data centers,” said the CEO of Nxtra by Airtel, Ashish Arora on Wednesday.

Shares of Bharti Airtel ended flat in the red at ₹1,117.6 per piece on the NSE.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Telecom licence fee collection rises 8.23% to ₹5,326 cr in September 2023 quarter

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The government’s licence fee collection from telecom service providers increased 8.23% year-on-year (YoY) to ₹5,326 crore, while spectrum usage charge mop up declined about 40% to ₹836 crore in the September 2023 quarter, according to the latest Trai report.

According to the performance indicator report released by regulator Telecom Regulatory Authority of India (Trai), operators’ gross revenue (GR) declined by 1.22% to ₹82,741 crore, but adjusted gross revenue (AGR) increased by 7.43% (YoY) to ₹66,583 crore during the reported quarter.

“On a YoY basis, GR decreased by 1.22%, ApGR (applicable gross revenue) increased by 6.74%, and AGR increased by 7.43% in the quarter ended September 2023,” the report released on Friday said.

Reliance Jio recorded the highest AGR of ₹24,217.13 crore with a 9.12% YoY rise.

Bharti Airtel posted the highest AGR growth rate of 10.88% at ₹19,840.84 crore during the quarter.

The AGR of debt-ridden Vodafone Idea remained almost flat at  ₹7,507.65 crore during the reported quarter.

State-owned BSNL’s AGR grew 1.93% to ₹1,966.44 crore, while MTNL’s AGR declined 16.35% on a YoY basis to ₹168.69 crore.

The government calculates its share of the revenue from the telecom sector in the form of licence fees and spectrum usage charges (SUC).

Access service providers or mobile operators like Reliance Jio, Bharti Airtel, and Vodafone Idea accounted for 81.67% of the total AGR.

“The License Fee (LF) increased from ₹5,246 crore for the QE (quarter ended) June 2023 to ₹5,326 crore for the QE September 2023. The quarterly and the Y-O-Y rates of growth in license fees are 1.53 and 8.23%, respectively, in this quarter,” the report said.

Mobile operators paid ₹4,350.67 crore as license fees and ₹831.49 as SUC.

As part of telecom reforms, the government has removed SUC on all spectrum procured through auctions conducted after September 15, 2021.

The total SUC declined to ₹836 crore in the September 2023 quarter from ₹1,403 crore a year ago.

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Why this analyst is bullish on Bharti Airtel

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Balaji Subramanian, Vice President at IIFL Securities, has given a ‘Buy’ recommendation on Bharti Airtel after the telecommunications service provider released its third quarter earnings on February 5. In an interaction with CNBC-TV18, Subramanian listed several reasons for his optimism on the company’s future.

Subramanian predicts an increase in tariffs after elections potentially improving the Average Revenue Per User (ARPU).

Additionally, the company’s rollout of 4G services in rural areas and plans for 5G deployment over the current (FY24) and next financial year (FY25) are expected to boost earnings.

Despite challenges such as a stiff competition and minimal tariff hikes, Bharti Airtel’s numbers have exceeded expectations, said Subramanian.

Subramanian also shared his view on Vodafone Idea (Vi), While the company saw subscriber declines earlier, the situation has improved in the recent quarters, and the focus is now on improving ARPUs, he noted, adding there may be some limitations to growth due to financial constraints, hindering its ability to invest in network expansion.

Bharti’s market capitalisation is currently at ₹6,54,286 crore, while that of Vodafone Idea is ₹68,346 crore.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Bharti Airtel shares: Q3 numbers healthy but analysts see upside capped on stock

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of Bharti Airtel gained 4% in trade Tuesday (February 6) after the telecom major reported healthy earnings during the October to December quarter despite challenges from forex losses. At 9:33 am, the scrip was trading 2.82% higher at ₹1,145 apiece on the NSE. The stock has rallied 13% so far this year and it’s up 45% in the last one year.

Global brokerage house Morgan Stanley has equal weight rating on the Bharti Airtel stock with a target price of ₹1,015 per share. The broking firm sees an improvement in the company’s revenue from the India mobile business and EBITDA on the back of better subscriber mix as the key highlights of its Q3 earnings.

Bharti Airtel’s capex was stable quarter-on-quarter and surprised positively. The telco also saw a robust cash flow generation, highlighted Morgan Stanley in its research report.

Bernstein has an ‘Outperform’ rating on the counter with a target of ₹1,140 per share. The brokerage said that strong India ARPU (average revenue per user) with capex continue to moderate ARPU beat at ₹208, over 2.5% quarter-on-quarter and 7.8% year-on-year, driven by higher post paid adds and smartphone or data upgrades.

India wireless revenue grew 3.3% sequentially led by 2.5% ARPU growth and 1% growth in sub.

The telco reported a 54% jump in its net profit at ₹2,442 crore for the third quarter that ended on December 2023. The profit figure was much lower than CNBC-TV18’s poll of ₹3,200 crore.

Revenue from operations in the reporting quarter increased 6% to ₹37,899.5 crore, partially impacted by currency devaluations in Africa.

ARPU improved to ₹208 in the third quarter as against ₹193 in the corresponding quarter of the previous year.

“We have delivered yet another quarter of consistent and competitive growth across all our businesses. Revenue from India business sustained its momentum and grew sequentially by 3.0%, while the consolidated revenue was impacted by the devaluation of the Nigerian Naira and Malawian Kwacha,” said MD Gopal Vittal.

Vittal said the quarter witnessed a strong growth trajectory for the postpaid and Homes business, while our DTH business added 388k net adds – the highest in the last 12 quarters. “We remain on course with our strategy of premiumisation that helped us add 7.4 million 4G/5G customers and exit the quarter with an industry leading ARPU of ₹208. Even at this ARPU, our return on capital employed however, continues to be low at 9.4%. To ensure industry health, tariff repair is extremely critical.”

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Bharti Airtel Q3 Results: Profit jumps 54% to ₹2,442 crore; ARPU improves to ₹208

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Telecom major Bharti Airtel on Monday reported a 54% jump in its net profit at ₹2,442 crore for the quarter ended December 2023. The same stood at ₹1,588 crore a year ago. The profit figure was much lower than CNBC-TV18’s poll of ₹3,200 crore.

Revenue from operations in the reporting quarter increased 6% to ₹37,899.5 crore, partially impacted by currency devaluations in Africa. It was ₹35,804 crore in the same quarter of last year.

ARPU (average revenue per user) improved to ₹208 in the third quarter as against ₹193 in the corresponding quarter of the previous year.

Consolidated EBITDA witnessed an increase of 1.2% to ₹20,044 crore in the quarter, compared to CNBC-TV18’s poll of ₹19,800 crore. This led to an improvement in EBITDA margin to 52.9%.

The company’s capex for the quarter came in at ₹9,274 crore.

The telco’s consolidated net income before exceptional items stood at ₹2,492 crore, up by 25.0% YoY, while consolidated net income after exceptional items was at ₹2,442 crore, up by 53.8% YoY.

“We have delivered yet another quarter of consistent and competitive growth across all our businesses. Revenue from India business sustained its momentum and grew sequentially by 3.0%, while the consolidated revenue was impacted by the devaluation of the Nigerian Naira and Malawian Kwacha,” said MD Gopal Vittal.

Vittal said the quarter witnessed a strong growth trajectory for the postpaid and Homes business, while our DTH business added 388k net adds – the highest in the last 12 quarters. “We remain on course with our strategy of premiumisation that helped us add 7.4 million 4G/5G customers and exit the quarter with an industry leading ARPU of ₹208. Even at this ARPU, our return on capital employed however, continues to be low at 9.4%. To ensure industry health, tariff repair is extremely critical.”

Bharti Airtel’s overall customer base stands at 551 million across 16 countries.

On Monday, shares of Bharti Airtel settled 3.23% lower at ₹1,113.60 apiece on the NSE.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Bharti Airtel repays ₹8,300 crore in spectrum dues for 2015 acquisition

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Since the beginning of 2024, Bharti Airtel stock has risen close to about 15%, reaching an all-time high. The telco recently announced that it made a partial payment of ₹8,300 crore towards its spectrum dues, related to the spectrum it acquired in 2015.

Although this payment is only part of what is owed, it’s a substantial amount. Bharti Airtel’s financial results will come out on February 5, and one significant factor anticipated by the market is a potential tariff hike in the telecom sector.

The last tariff increase occurred over two years ago, in November–December 2021. With elections nearing completion, there is a growing expectation of a tariff hike of around 15%. Investors are keeping a close eye on this development, as it could have a substantial impact on the industry.

Read Here | HSBC downgrades Bharti Airtel but raises target to ₹1,125 on market share gains

Surprisingly, despite the absence of tariff hikes in the last two years, Bharti Airtel has witnessed growth in its average revenue per user (ARPU). ARPU has risen from around ₹160 to surpass the ₹200 mark.

Investors in Bharti Airtel have enjoyed positive returns for the past five years, making it a consistent performer in the stock market. The company concluded the previous year with a gain of approximately 28%, marking the fifth consecutive year of positive annual returns.

Let’s take a quick look at the impressive annual returns Bharti Airtel has delivered in the last five years: 59% in 2019, 12% in 2020, 37% in 2021, 18% in 2022, and a robust 28% in 2023. These figures showcase the company’s resilience and strong financial performance over this period.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Dove Or Data? The better defensive play between HUL and Bharti Airtel

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Hindustan Unilever Vs Bharti Airtel, yes, you read it right!

Before you believe it is not a fair comparison, think about it. You probably require your phone and mobile data as much as you need your shampoo and soap. In fact, you may need mobile data to order the same shampoo and soap from the nearest quick-delivery service!

That is what Jefferies believes too and hence, this comparison, highlighting both these respective sectoral giants as a play on India’s consumption story.

Interestingly, as different as these two stocks are, there are multiple similarities between the two as well.

For instance, a decade ago, both had similar market capitalisation and its no different even in 2024 as they both are currently at ₹6 lakh crore market capitalisation.

An adverse regulatory environment coupled with rising competition weighed on Bharti Airtel until 2019, whereas margin-led growth had propelled HUL’s market capitalisation to be triple of the telecom giant at one point, according to Jefferies.

Both companies also operate in industries that have similar addressable markets. The telecom industry has grown at a Compounded Annual Growth Rate of 5.5%, while the FMCG industry grew by 7% over the last decade.

If these isn’t enough similarities, both companies also have a nearly similar market share of around 34% to 35%.

Now, here’s a difference. While Bharti’s market share is uniform across regions, which reflects a largely consolidated market, HUL operates in a very competitive market across most of its categories.

Over the last decade, Bharti Airtel’s revenue has grown at a 6% CAGR and Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) grew at 9%. On the other hand, HUL’s revenue and EBITDA has grown slightly faster, at 9% and 12% respectively, over the same period.

A standout for HUL though, is the strength of its balance sheet. Bharti’s invested capital is over ₹1.5 lakh crore and touched ₹2 lakh crore last year, whereas HUL invests just over 2.5% of that amount on an annual basis. In fact, if you account for the cash that HUL generates, their invested capital is a lot lower.

That explains why Bharti Airtel has a net debt worth over ₹2 lakh crore, while HUL, on the flip side, has a cash balance of nearly a billion dollars. This, despite having a much higher dividend payout ratio of nearly 90%.

The question to be asked though, is what next?

Jefferies believes that entry barriers in the FMCG industry are going down, while the barriers to entry in the telecom market have significantly increased. Competition is increasing in the consumer space, even as the telecom market is moving towards a duopoly.

However, growth and valuations are both at odds and at a disadvantage for HUL. In fact, Jefferies is expecting a 9% EPS CAGR for HUL compared to a 54% CAGR projected for Bharti Airtel over financial year 2023 – 2026.

Hence, their view is, a better defensive play on India’s consumption story would be Bharti and not HUL at the current juncture. Therefore, they have a BUY rating on Bharti with a target of 1300 while they recommend a HOLD on HUL with a target of 2800 per share.

Therefore, Jefferies’ view is that Bharti Airtel would be a better defensive play on India’s consumption story and not Hindustan unilever. As a result, they have a “buy” recommendation on Bharti with a price target of ₹1,300, while they have a “Hold” rating on HUL with a price target of ₹2,800.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

HSBC downgrades Bharti Airtel but raises target to ₹1,125 on market share gains

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of Bharti Airtel opened a percent higher in trade Thursday after global brokerage firm HSBC downgraded the stock to ‘Hold’ but raised its target price to ₹1,125 from ₹1,020 a share earlier, saying the stock of telecom services provider appears to be fairly valued.

Analysts at HSBC said that Bharti Airtel’s growth drivers remain intact. It expects a rise in average revenue per user (ARPU) and market share gains in mobile. However, they expect the growth in non-mobile and capex intensity to decline.

The brokerage also sees pricing in benefits from mobile tariff hikes and lower capex intensity.

Earlier on January 10, BofA Securities upgraded the Bharti Airtel stock to ‘Neutral’ and also raised the target price on expectations of a tariff hike. The brokerage expects a “meaningful tariff hike” in the next 12 months and expect Bharti Airtel to benefit.

“We estimate over 20 percent tariff hike in 2024. The capex cycle pick-up is expected as Bharti’s capex is based on improving handset penetration. We expect faster market share shift towards Bharti and Jio as 5G rollout scales up. However, the stock’s valuations are not cheap at 9.4x FY25 proportionate EV/EBITDA,” the brokerage firm said.

Domestic brokerage house Prabhudas Lilladher expects subscriber growth of 3.6 million and a 1.1% quarter on quarter increase in ARPU in the October-December period.

Accordingly, the brokerage expects Bharti Airtel’s third-quarter consolidated revenue and earnings before interest, tax, depreciation, and amortisation (EBITDA) to rise 2.3% and 2% QoQ, respectively.

“Airtel Africa business is expected to see revenue growth of 4% QoQ, and we have factored in a 4% QoQ growth rate for the enterprise business. Home services will see revenue growth of 8.1% QoQ with margin expansion of 20 bps QoQ. For DTH, we have factored a muted growth of 0.7% QoQ,” it said.

In the past six months, the stock has surged nearly 20% against a 9% rise in the benchmark Sensex.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Bharti Airtel’s B2B arm to power 20 million smart meters for Adani Energy Solutions

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Bharti Airtel has entered into a partnership with Adani Energy Solutions to power 20 million smart meters for the company with its IT solutions.

Airtel Business, the B2B arm of Bharti Airtel, is set to power a total of 20 million smart meters for Adani Energy Solutions with its transformative smart Internet of Things (IoT) solutions, the telecom operator said in a stock exchange filing on Tuesday, January 9. The smart meters are from the power utilities of Assam, Andhra Pradesh, Bihar, Maharashtra and Uttarakhand.

The country’s leading telecommunications service provider has stated that it will deliver reliable and secure connectivity for all the smart meter deployments of Adani Energy Solutions, making use of its robust nationwide communications network. Further, Airtel’s transformative smart metering solutions which are powered by NB-IoT, 4G and 2G will be useful in ensuring real-time connectivity and uninterrupted transfer of critical data between smart meters and headend applications.

The solution shall also have Airtel’s IoT platform, which is called ‘Airtel IoT Hub’ that allows smart meter tracking and monitoring with advanced analytics and diagnostic capabilities, along with providing real-time insights and services which are known to empower customers to enhance control over their energy consumption.

“The meters are critical building blocks for smart grids and fundamental enablers for the digitalisation of the power sector. Airtel expects its NB-IoT technology to play a significant role in the utilities space to connect and manage smart meters at scale with enhanced coverage, high reliability and security,” said Airtel Business (India) CEO Ganesh Lakshminarayanan in a press release.

Bharti Airtel Ltd shares were trading 0.7% higher at ₹1,056.2 per piece at 12:25pm on Tuesday, January 9.

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Telecom outlook 2024: Experts weigh in on key sector drivers, Vodafone’s debt woes

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Sanjay Kapoor, former CEO of Airtel, and Balaji Subramanian, Vice President of IIFL Securities discussed the major trends from tariffs to new technologies that could drive the telecom sector in 2024.

They also shared their view on Vodafone Idea’s debt pile in the context of the spike in its stock. Shares of the telecom service provider were up 10% on January 2 after having gained 21% on Friday, December 29.

The shares gained as the Vodafone management had earlier said that the promoters plan to infuse up to ₹2,000 crore by the end of the December quarter. There were also media reports that the government could sell its 33% stake in Vodafone Idea to Elon Musk, the owner of “X” and Tesla. However, Vodafone denied any such discussions in a stock exchange filing. 

“The moot question here is what happens to Vodafone Idea given the huge amount of debt that they carry. From a business perspective, I actually don’t see a business case where somebody from any part of the world will come and say, I am willing to fund this company, and bear all the debt burden that this company has, and catch up with the market players and compete with them and make a business virtue out of this going forward, I actually don’t see that happening,” Kapoor said.

Read Here | Vodafone Idea shares up 30% in two sessions; Fund raising clarity awaited

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Subramanian said there is potential for promoters to inject equity into Vodafone Idea. However, there is still need for substantial investment, considering the looming moratorium on spectrum and adjusted gross revenue (AGR) payments until late 2025.

“…the government also has got an option to convert the principal during the moratorium into equity, which means that whoever enters the stock right now sees a significant dilution potentially. So that is why It makes things a little tricky,” he noted.

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The telecom experts also shed light on the challenges for the telecom sector. Kapoor believes the biggest dilemma that most telecom companies face now is whether to double down on 5G or try and cover up the investments that have made since it’s become tough to monetise 5G. “There are more newer technologies coming in we are talking AI, we are talking IoT, we are talking storage,” he noted.

Disclosure: RIL, the promoter of Reliance Jio, also controls Network18, the parent company of CNBCTV18.com.

Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow