Should You Buy Airtel Stocks: Airtel shares are witnessing a decline after the fourth quarter results of FY 2021. In the business of Tuesday, May 18, Airtel saw a weakness of about 2 percent and it weakened to Rs 537. The stock closed at Rs 550 on the day of the results on Monday. There has been some decrease in the average revenue per user (ARPU) of Airtel. At the same time, spending has increased due to investment in spectrum. However, the company made a profit of Rs 759 crore in the March quarter. Income of the company has also increased. After the quarterly results, most brokerage houses are looking positive on the stock outlook.
759 crore profit to the company
Bharti Airtel reported a net profit of Rs 759 crore in the fourth quarter. The company had a loss of Rs 5,237 crore in the same quarter last year. At the same time, Banshi Airtel’s Conso earnings in the fourth quarter increased 12 per cent year-on-year to Rs 25,747 crore. A year ago in the same quarter, the company’s revenue was Rs 23,019 crore. On a quarterly basis, revenue has come down by 3 per cent.
ARPU Decrease
Airtel’s average revenue per user (ARPU) fell 5.8 per cent to Rs 145 per user in the March 2021 quarter. It was Rs 154 per user in the same quarter last year. Actually, the market regulator removed the interconnect charge from January 1 this year, due to which the ARPU has come down. However, Bharti Airtel added more subscribers in the March 2021 quarter. There are about 14 million 4G subscribers added in the March quarter. During this time, the usage of data has also increased.
Growth in EBITDA
Airtel’s EBITDA grew 2.3 per cent quarter-on-quarter to Rs 12330 crore in the fourth quarter, as expected. Mobile India EBITDA has grown at 4 per cent. EBITDA margin increased by 240bp to 47.9 per cent on a quarterly basis. EBITDA has 32 per cent growth in EBITDA and positive signs on the ARPU front without increasing tariffs in the last 4 quarters.
Buy or sell shares
Brokerage house UBS has set a target of Rs 655, recommending investment in Airtel. At the same time, CLSA has also advised purchase and has set a target of Rs 730. Brokerage house Citi has advised to invest in Airtel and has a target target of Rs 685. The brokerage house says that Airtel’s performance in the March quarter has been better than Jio on many front lines. The company has added more 4G data subscribers than expected. However, India Mobile EBITDA has been somewhat weaker than expected.
(Note: We have given information here based on the quarterly performance of the company and the report of the brokerage house. Given the risk of the market, be sure to consult the experts at their level before investing.)
Get Business News in Hindi, latest India News in Hindi, and other breaking news on share market, investment scheme and much more on Business Khabar. Like us on Facebook, Follow us on Twitter for latest financial news and share market updates.
.