By Kosaku Narioka
Bharti Airtel is scheduled to report its third-quarter results on Monday. Here is what you need to know:
NET PROFIT FORECAST: Bharti Airtel is expected to post a 66% increase in net profit to 26.34 billion rupees ($317.6 million) for the three months ended Dec. 31, according to a poll of analysts by FactSet. That compares with a net profit of INR15.88 billion a year earlier.
REVENUE FORECAST: Third-quarter revenue is estimated to have increased 5.3% from a year earlier to INR376.95 billion, according to the FactSet poll.
The stock rose 11% in the October-December period and has risen an additional 11% so far in 2024 through Thursday, when shares closed at INR1,150.75.
WHAT TO WATCH:
--Second-quarter profit from Bharti Airtel's mobile services in India rose 29% from a year earlier to INR46.775 billion, as its customer base grew 4.4% to 342.3 million and average revenue per user increased 6.9% to INR203 a month. Investors are closely watching the strength of the key segment.
--The company's earnings-before-interest-and-taxes margin rose to 26.8% in its second quarter from 25.4% a year earlier. Investors are focusing on any further improvement in margins as businesses globally deal with high inflation.
--Capital expenditure rose 31% from a year earlier to INR92.06 billion in its second quarter. Investors are paying attention to the burden of capital spending to maintain and upgrade its vast communication network.
Write to Kosaku Narioka at kosaku.narioka@wsj.com
