Bharti Airtel, the second largest mobile network operator in India, on February 3 turned profitable in the December quarter 2020, posting a consolidated net profit of Rs 853.6 crore, driven by exceptional gains. Its net loss (before exceptional items) stood at Rs 298 crore for the quarter.
It had an exceptional gain of Rs 4,559.9 crore in Q3FY21, which comprised charge on account of re-assessment of contractual and regulatory levies and taxes of Rs 3,159.6 crore; charge on account of reassessment of the useful life of certain categories of network assets due to technological advancements and impairment of intangible assets of Rs 1,419.5 crore and net credit on account of settlement with a customer and other charge for related entities Rs 19.2 crore.
The company posted a loss of Rs 763.2 crore in the September quarter. It reported losses in all previous four quarters largely due to adjusted gross revenue (AGR) provisions.
The highest ever consolidated revenue from operations at Rs 26,517,8 crore in Q3FY21 grew by 5.8 percent sequentially and 24.2 percent year-on-year, said the company in its BSE filing.
Here are the highlights of  Bharti Airtel’s Q3 FY20 earnings call compiled by Narnolia Financial Advisors:
According to Bharti Airtel management, the company successfully demonstrated live 5G services in Hyderabad. The 5G ecosystem is still nascent and in the coming 12 months, the shipment would be more with 5G. Around 300 million featured phones can be upgraded to smartphones.
AGR matter
The group has filed an application before the Supreme Court highlighting basic arithmetical, clerical and computational errors in the department of telecommunications demand. The application is pending adjudication.
Revenue for the quarter grew on account of consistent performance in every segment and revenue market share increase of each business. Homes business witnessed revenue growth of 2.3 percent YoY, with customer addition of 215,000. The growth is on the account of customer demand due to work from home and study from home, expansion and improved experience, the management said.
Airtel is showing double-digit growth for the last few years on account of an efficient business model and strong demand for connectivity and solution. The company continues to expand and grow in verticals such as data centres, cloud, cybersecurity, customer relationship management platforms and video-conferencing among others.
Under homes business 1.4 million fibre home passes were given and in the coming year or so, the copper asset would be converted to fibre, which will help in reducing cost and improving user experience. Digital services offering continues to see robust growth, MAUs increased to over 190 million across key digital assetsThanks, Wynk , Xstream, Bharti Airtel said.
The management guided to continue scaling up LCO partnership model and expanding to more than 120 cities. The digital TV business grew by 5.8 percent YoY on account adding 485,000 customers and for further accelerating the business innovation and differential experience is focused on.
DTH segment would grow in midterms on account of availability of DTH at much lower rates and also the cable operators are high in India so this switch from cable to DTH would also be help.
During the quarter, Airtel joined hands with Amazon for the first rollout of Prime Video mobile edition. Indus Tower and Bharti Infratel merged on November 19, 2020. Now called Indus Tower Ltd, the merged entity is treated as a joint venture, the management added.