In 2023, Tariffs Will Rise: Bharti Airtel Chairman
Chairman Sunil Bharti Mittal of Indian telecom major Bharti Airtel believes there will be a tariff hike in mid-2023 because of the low return on capital.
In 2023, Tariffs Will Rise: Bharti Airtel Chairman
According to Mittal, Airtel‘s balance sheet is healthy, so no further capital requirements exist. While a lot of capital has been invested, the industry could yield a much higher return on capital.
In order to solve this problem, something needs to be done. Indian tariffs need small increments to be raised. According to him, he hopes that half of them will be done (by mid-year).
Sunil Mittal disagreed that tariff increases impact welfare since people’s spending on other things would be higher than the hike.
Aside from one thing, salaries have gone up. Rents have gone up. The situation is calm. There is no complaint. Some people consume 30 GB for almost no money.
Vodafone types of scenarios do not exist in our country. The country needs to have a robust telecom company. Digitalization and economic growth have become a reality for India.
There is awareness on all sides – the government, the regulator, and the people. In January, Airtel raised its 28-day minimum recharge plan by 57 per cent to Rs 155.
A Rs 99 minimum plan with 200MB data and 2.5paise calls was also scrapped. During the December quarter of FY22-23, Airtel’s India Mobile Average Revenue per User (ARPU) climbed to Rs 193, up from Rs 163 in FY21-22.
To achieve sustainable operations, telcos plan to raise ARPU prices in the short, medium, and long term. A report by Bharti Airtel on Monday indicated that the company had crossed the 10 million mark regarding unique 5G subscribers on its network.
By March 2024, Airtel plans to offer 5G services in every town and key rural area. It has reached 10 million unique 5G users on its network.
A statement from Airtel said that within 30 days of its commercial launch in November 2022, it would have 1 million unique customers on its network. It notably launched high-speed 5G services in October 2022 in the country.
Mobile devices can download full-length, high-quality video or movies in seconds (even in crowded areas) using 5G services’ ultra-low latency connections.
In addition to e-health, connected vehicles augmented reality and metaverse experiences, 5G deployment would enable advanced mobile cloud gaming, lifesaving use cases, and many other applications.
It was trading at Rs 785.40 on February 21, up Rs 6.30 or 0.81 per cent. With higher minimum recharge plans taking effect across two more circles, the telecom firm may eventually roll out pan-India over the coming weeks, maintaining an overweight stock rating with a target of Rs 860 per share.
5G plus service has been expanded to all northeastern states by the company. Based on their advice, investing in Goldman Sachs stocks is an excellent risk-reward strategy. A new plan from Bharti Airtel introduces unlimited voice calls, 1GB of data, and 300 SMS for 155 rupees in Maharashtra and Kerala.
This price hike expands the number of circles, with the telecom operator hiking their entry-level tariffs to 19 of 22. It is yet to raise its prices in Kolkata, Gujarat, and Madhya Pradesh.
As the company’s spokesperson has explained, the new plan will provide better customer service, eliminate metering, and provide better convenience and value.
Compared to a year ago, Bharti Airtel’s consolidated net profit increased by 91% to Rs 1,588 crore, up from Rs 830 crore.
Substantial 4G customer additions throughout the year helped drive the surge. Revenue grew by 20 per cent in the same quarter from Rs 29,867 crore to Rs 35,804 crore. Bharti Airtel reported in a filing that revenue increased 4 per cent sequentially.
The telecom giant confirmed its quarterly results on Wednesday, which will likely bring attention to its shares on February 9.
A 91 per cent increase in consolidated net profit for the quarter that ended December 2022 was driven by the improved realization and strong 4G customer additions for Bharti Airtel.
The net profit fell 26 per cent sequentially, however. Analysts expected around 155% YoY growth in Bharti Airtel’s Q3 profit. Compared with last year’s corresponding quarter, total revenue increased by 20% to Rs 35,804 crore.
The telecom giant reported a 4 per cent sequential increase in revenue. Following yesterday’s announcement of its December quarter earnings, Bharti Airtel shares were in focus this morning.
Its quarterly net profit increased by 91 per cent to Rs 1,588 crore from Rs 830 crore a year ago, supported by the improved realization and strong 4G customer additions. However, profits fell sequentially by 26 per cent for the telecom giant.
For the third quarter, analysts projected 155 per cent on-year growth. During the same quarter last year, revenue was Rs 29,867 crore, up by 20% to Rs 35,804 crore. Bharti Airtel said it increased revenue sequentially by 4 per cent.
Over the quarter, consolidated EBITDA rose by 25 per cent over the year and by 5 per cent over the quarter.
Compared to 49.9 per cent in the corresponding quarter last year and 51.3 per cent in the prior quarter, the EBITDA margin for the quarter was 52.0 per cent. In the quarter, its average revenue per user (ARPU) in India grew by 2 per cent and 18 per cent.
edited and proofread by nikita sharma