Shares of Bharti Airtel Ltd. fell after its second-quarter profit came below the consensus estimate of analysts.
The Indian telecom operator’s net profit rose 33% sequentially to Rs 2,145.2 crore for the quarter ended September 2022, according to its exchange filing. That compares with the Rs 2,327.4-crore consensus estimate of analysts tracked by Bloomberg.
Bharti Airtel Q2 Results FY23 (Consolidated QoQ)
Revenue up 5% at Rs 34,526.8 crore
Ebitda up 7% at Rs 17,721.2 crore
Ebitda margin at 51.3% vs 50.6%
Morgan Stanley sees Airtel’s India Ebitda miss and weaker-than-expected cash flow generation as the key misses in the quarter. While Jefferies downgraded Airtel’s ratings to ‘hold’ saying the current stock price has already priced in the strong growth outlook.
However, majority of the analysts’ sentiments were positive after the telecom operator reported strong revenue growth in the second quarter. Nomura said Bharti Airtel’s overall revenues remained higher than those reported by Reliance Jio Infocomm Ltd. in July-September, while Ebitda remained 5% higher.
Shares of Bharti Airtel fell 1.83% to Rs 431.85 apiece as of 9:40 am, while the benchmark Nifty 50 gained 0.59% on the NSE.
Here’s what brokerages made of Bharti Airtel’s quarterly results: