Tuesday 26 April 2016

Bharti Airtel Q4 margins to remain under pressure

Bharti Airtel is likely to print 1.6% qoq rise in domestic wireless revenues driven by 4% qoq growth in volumes offset by persistent pressure on voice pricing.

Bharti Airtel
Bharti Airtel, country’s largest telecom operator, will announce its financial results on April 27 for the fourth quarter ended March 31, 2016.

IIFL estimates the company’s net profit to be at Rs.1,179 crore, which constitutes a 5.6% rise qoq and 6.1% drop yoy.

As per IIFL’s forecast, the company is expected to register a net revenue of Rs.24,744 crore, growing at 7.4 % yoy and 2.7 % qoq. 

Operating profit margin of the company is likely to be at 34.9%, a fall of 27 bps yoy and 12 bps qoq.

Bharti Airtel is likely to print 1.6% qoq rise in domestic wireless revenues driven by 4% qoq growth in volumes offset by persistent pressure on voice pricing. IIFL expects Africa INR revenues to rise 1.2% qoq which in turn would drive 2.7% qoq jump in consolidated revenues. Margins are expected to remain under pressure on higher network opex which would translate into 14% qoq decline in PAT.

Telecom operators would enjoy a strong topline quarter on back of domestic seasonality tailwind though margin pressures would be evident qoq

Other key Q4 results on April 27 include Ceat India, Exide India, Fag Bearings, Gati Limited, JSW Energy, Kansai Nerolac Paints, Kirloskar Pneumatic, KPIT Technologies, Sadbhav Engineering, Yes Bank, Shriram City Union Finance, and Alembic Pharmaceuticals. 

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