Bharti’s Q4FY21 efficiency was broadly in line with our expectations underpinned by sustained operating momentum across important enterprise segments. We cut down our FY2022-23 Ebitda estimates by 1-3%, even though factoring in reduce ARPU and greater subscribers for India wireless enterprise. We reiterate Buy with a revised SoTP-based FV of Rs 700 (Rs 710 earlier) seeing Bharti as a definite play on business repair as nicely as consolidation the visibility on either may perhaps boost in 12-18 months.
Sustained healthful development in revenues and Ebitda across important segments
India wireless enterprise ex-IUC revenues and Ebitda improved 4.2% q-o-q and 3.6% q-o-q led by a sturdy net subscriber addition of 13.4 mn, which was partly offset by a marginal q-o-q decline in realised ARPU to Rs 149/sub/month, partly due to a fewer quantity of days voice and information volumes improved by 8-9% q-o-q. Africa enterprise delivered a sturdy 17% y-o-y development in revenues and highest-ever Ebitda margins at 47.7%. Enterprise enterprise reported 6.1% sequential raise in Ebitda driven by 2.2% rise in revenues and robust expansion in margins to 40.2%.
Overall revenues improved 2% q-o-q and 17.6% y-o-y, on a like-for-like basis, to Rs 257.5 bn. Ebitda at Rs 123.3 bn (+2.3% q-o-q, +21% y-o-y), was 1.8% under our estimate due to a modest miss on ARPU, which was mitigated by curtailed operating fees. PBT at Rs 10.5 bn was 12% above our estimate led by a sequential decline in finance expense to Rs 37.8 bn, such as interest on pending AGR dues and steady D&A expense. The enterprise accounted exceptional achieve of Rs 5.8 bn (post-tax). Reported net revenue was Rs 7.6 bn and recurring net revenue was at Rs 3.2 bn net of exceptional item and associated minority adjustments.
Strong efficiency across segments in FY2021 modest raise in net debt
In FY2021, Bharti reported healthful 15% development in all round revenues, reflecting—(i) robust 21% raise in India wireless revenues underpinned by robust subscriber addition of 37.7 mn and 13% rise in ARPU to Rs 153 (ii) 19% development in Africa enterprise and (iii) 9% development in enterprise enterprise. Overall Ebitda improved 24% to Rs 453.7 bn amid a moderate 9% rise in operating fees. Adjusted net loss moderated to Rs 28.8 bn (EPS of -Rs 5.2/share) from Rs 36.4 bn in FY2020. Net debt such as lease obligations improved to Rs 1.49 trn from Rs 1.25 trn at the finish of FY2020. Capex was steady at Rs 241.7 bn.
Fine-tune estimates retain Obtain
We cut down consolidated Ebitda estimates for FY2022-23 by 1-3%, even though factoring in (i) greater India wireless subscribers and reduce ARPU (ii) greater contribution from Africa and (iii) other minor adjustments. We reiterate Buy with a revised SoTP-based FV of Rs 700, expecting robust development in Ebitda in the medium term irrespective of sector dynamic.