The company reported a 4% sequential and 10.9% year-on-year increase in revenue. EBITDA margin improved to 54.8% from 54.4% in the previous quarter, while net profit rose 8% quarter-on-quarter and 23.2% from a year earlier.
Growth during the quarter was led by a 2.8% sequential increase in average revenue per user (ARPU), marking the strongest quarter-on-quarter ARPU growth in the last six quarters.
Brokerage firm Citi has maintained its ‘Neutral’ rating on the stock with a price target of ₹1,710.
According to Citi, Bharti Hexacom’s core mobile revenue, excluding access charges, grew 3.7% sequentially, around 1% ahead of its estimates. While ARPU exceeded expectations, mobile subscriber additions remained below forecasts, in line with the trend seen at Bharti Airtel.
The brokerage said that the company’s home broadband business posted 8% sequential revenue growth, although it fell 6% short of estimates due to lower-than-expected subscriber additions.
Overall revenue of ₹2,510 crore came in about 1% ahead of Citi’s estimates, supported by higher access revenues. However, the benefit was offset by higher access charges, resulting in EBITDA of ₹1,320 crore, largely in line with expectations.Net profit stood at ₹480 crore, around 3% below Citi’s estimates, primarily due to slightly higher depreciation and amortisation expenses.
