Airtel Share Price Surged After Over 400% Growth in Net Profit: Q3 Results

Bharti Airtel shares surged by nearly 4% during morning trading on Friday, February 7, 2025, after the telecom giant released its impressive Q3 FY 2024-25 results post-market hours on Thursday. Let's dive into the details.

Bharti Airtel’s Q3 FY 2024-25 Performance: Key Highlights

Bharti Airtel delivered a standout performance for the quarter ending December 2024, mainly driven by a one-time extraordinary gain. Here's a breakdown:

Net Profit Surge

• Reported Net Profit: ₹14,760 crore
• Year-on-Year Growth: A massive 483% increase from ₹2,530 crore in Q3 FY 2023-24

Extraordinary Gains

Several one-time gains boosted the remarkable profit:

1. Indus Towers Consolidation: ₹14,322.5 crore gain as Indus Towers became a subsidiary in November 2024.

2. Reversal of Provisions: ₹128.5 crore from input tax credit adjustments on passive infrastructure services.

3.Foreign Exchange Gains: ₹1,193.6 crore.

Offsetting Costs

• Regulatory Levies: ₹6,358.6 crore
• Impairment on Intangible Assets: ₹1,740.4 crore

Revenue and EBITDA

• Consolidated Revenue: ₹45,129 crore, up 19% YoY
• EBITDA: ₹24,880 crore, a growth of 24% YoY
• EBITDA Margin: Improved to 55.1% from 52.9% in Q3 FY 2023-24.

Rising ARPU: A Key Growth Metric

A significant highlight for Bharti Airtel was its Average Revenue Per User (ARPU), which reflects its ability to generate income per customer:

• Q3 FY 2024-25 ARPU: ₹245
• Q3 FY 2023-24 ARPU: ₹208

The significant improvement in ARPU underscores Bharti Airtel's robust operational performance and ability to capitalise on tariff hikes and premium service offerings.

Bharti Airtel: Key Factors Driving Its Market Position

1. ARPU Growth Advantage

As the telecom industry gears up for frequent tariff hikes, Bharti Airtel, with its premium-quality offerings, stands to gain the most.

2. Robust 5G Rollout

Bharti Airtel has been proactive in deploying its 5G network, ensuring it stays ahead of technological advancements and customer demand.

3. Improving Financial Metrics

• The company is on track to improve its free cash flow significantly, thanks to moderating capex and ARPU growth.
• Bharti's efforts to reduce its net debt of ₹1,33,700 crore (as of Q3 FY 2024-25) could further enhance equity value in the coming years.

Conclusion: Should You Own Bharti Airtel?

With a stellar Q3 performance and increasing ARPU, Bharti Airtel presents a compelling investment opportunity for long-term investors. The company's focus on 5G expansion, operational efficiency, and premium customer retention positions it as a key beneficiary of the evolving telecom landscape.