Alert> Singtel – Indian associate reports 40% sequential rise in core profit – in line
Bharti Airtel reports 4QFY22 net profit before exceptional item of INR11bn (+40% q-o-q, +246% y-o-y) in line with our expectations.
We project Bharti to deliver 60-70% earnings growth in FY23F.
Maintain BUY on Singtel with unchanged TP of S$3.13.
Bharti Airtel reports 4QFY22 net profit before exceptional item of INR11bn (+40% q-o-q, +246% y-o-y) in line with our expectations. Bharti Airtel’s FY22 stellar performance continued in 4Q22, recording net profit excluding exceptional items of INR11bn (+40% q-o-q, +246% y-o-y). Rising revenue supported by decline in other expenses and finance costs supported the sequential earnings growth. In 4Q22, Bharti Airtel’s revenue was recorded at INR315bn (+5.5% q-o-q, +22% y-o-y), highest ever consolidated revenue, supported by strong performance across all segments. Led by tariff revision in 3Q22, India’s mobile services revenue recorded its highest ever quarterly revenue of INR176bn (+10% q-o-q, +25% y-o-y). Average revenue per user (ARPU) in 4Q22 stood at INR178 (+9.2% q-o-q, +23% y-o-y) while adding 3.1m subscribers during the quarter, taking the total count to 326m. 4G data customers in India reached 201m (63.9% of the total compared to 62.8% in 3Q22).
Bharti contributed pre-tax profit of S$249m over 9MFY22 and with this result, we project Bharti to contribute S$150m in pre-tax profit in the upcoming 4QFY22F. We project Bharti to deliver 60-70% earnings growth in FY23F.
Tariff revision in 3Q22 supported the rise in Bharti’s mobile services ARPU to INR178
Source: Company, DBS Bank