Bharti Airtel Limited Q2FY20 Result Update
About the Company:
Founder of Bharti AIRTEL, Mr. Sunil Bharti Mittal claims Airtel is India’s first 4G network, operating in 16 countries across Asia and Africa. The company’s headquartered in New Delhi, India. The company's product offerings include 2G, 3G and 4G wireless services, mobile commerce, home broadband, DTH, etc.
QoQ & YoY Performance:
India’s leading telecom service company has declared the results for the second quarter of the financial year ending March 2020.
- QoQ Performance: Consolidated Net sales/ revenue of the company recorded to Rs. 21,131.3 crores, marginally up by 1.90% in the September quarter of FY20. Total expenditure (excluding interest and depreciation expenses) is Rs. 15165.8 crores, declined by 4.15%. EBITDA numbers surged by 20.71%.
- YoY Performance: The Company has reported flattish growth in sales/revenue by 4.88% while expenditure (excluding interest and depreciation expenses) of the company decreased by 11.64%. EBITDA numbers climbed by 96.82%.
- Profitability of the company: Net loss of the company clocked at Rs. 23044.9 crores.
- Segmental Revenue: Mobile revenues have witnessed a YoY growth of 7.1%. Mobile data traffic has nearly doubled to 4,497 PBs in the quarter as compared to 2,478 PBs in the corresponding quarter last year. Digital TV revenue witnessed a growth of 17.1% YoY on an underlying basis decline of 22.9% on a reported basis due to reporting changes in DTH pursuant to the new tariff order.
As per Lokesh Sethia, SEBI Registered Research Analyst, the stock is trading at Rs.396 per share. Sunil Mittal owned Telecom Company has reported poor quarterly numbers due to weak seasonally quarter. However, Airtel's net debt narrowed year on year basis to Rs 1,18,106.5 crore. Hence, we recommend it ‘BUY’ with the target of Rs. 476 per share for Long-Term view.