Bharti Airtel shares fall even after Q3 profit rises 92% YoY. Should you buy, sell or hold?

However, the net profit was lower than the average estimate of Rs 2,673 crore, but revenue was higher than the estimated Rs 35,299 crore. Sequentially, the topline grew 3.7%, while the bottomline dropped by a sharp 47%.

The total expenses in the third quarter rose to Rs 17,351 crore from Rs 15,164 crore a year ago, and Rs 16,933 crore a quarter ago. Spectrum usage charges in the quarter increased 4% YoY to Rs 2,842 crore but were down 4% sequentially.

Consolidated operating profit, calculated as earnings before interest, taxes, depreciation, and amortisation (EBITDA), came in at Rs 18,601 crore; with the operating margin improving 205 basis points YoY to 52%.

The India business posted an EBITDA of Rs 13,167 crore, and margins expanded 299 bps to 52.7%. The India business posted quarterly revenue of Rs 24,962 crore, up 19.4% YoY. The mobile services India revenue grew 21% YoY, led by continued 4G customer addition and an increase in ARPU.

The average revenue per user or ARPU was at Rs 193 in Q3, a tad higher than Rs 190 a quarter ago, due to moderate tariff hikes.

At 10.15 am, the scrip was trading 1.9% lower at Rs 770 on BSE. The stock has also fallen 5% year-to-date.Should you buy, sell or hold Bharti Airtel stock? Here’s what analysts say:

Morgan Stanley
Morgan Stanley maintained its overweight rating on Bharti Airtel post December quarter results with a target price of Rs 860, implying an upside potential of 12% from the current market price of Rs 770 apiece.

“The Q3 results were in-line but capex was higher than expectations. There is visible strength in 4G subscriber growth in India’s mobile business. ARPUs are trending higher, and in line with expectations,” it said.

JPMorgan
JPMorgan maintained an underweight rating on Bharti Airtel post December quarter results with a target price of Rs 700.

“Bharti’s Q3FY23 print was broadly in-line. India’s wireless revenue growth was led by both subs and ARPU,” the brokerage said.

Brokerage firm Motilal Oswal has a Buy rating on Bharti Airtel with a target price of Rs 786, which shows an upside potential of 2% from the current market price of Rs 770 per share.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)