By Kosaku Narioka
Bharti Airtel is scheduled to report its first-quarter results on Thursday. Here is what you need to know:
NET PROFIT FORECAST: Bharti Airtel is expected to post an 83% increase in net profit to 29.39 billion rupees ($356.9 million) for the quarter ended June, according to a poll of analysts by FactSet. That would compare with INR16.07 billion net profit in the year-earlier period.
REVENUE FORECAST: First-quarter revenue is estimated to have increased 12% to INR367.88 billion, according to the FactSet poll.
WHAT TO WATCH:
–INDIA MOBILE: Profit from its mobile services in India increased 44% to INR40.82 billion in its fourth quarter, as its customer base grew 2.9% to 335.4 million and average revenue per user increased 8.4% to INR193 a month. Investors will be focusing on the strength of the key segment.
–MARGIN: The company’s earnings-before-interest-and-taxes margin improved to 26.1% in its fourth quarter from 23.2% a year earlier. Investors will be closely watching margin trends, as businesses globally are dealing with higher costs of operation.
–CAPEX: Its capital expenditure increased 91% to INR114.36 billion in its fourth quarter. Investors will be paying attention to the burden of capital spending, as telecom companies like Bharti Airtel are required to constantly upgrade its vast networks to remain competitive.
Write to Kosaku Narioka at [email protected]
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