Bharti Airtel's fourth quarter earnings report will be out on Tuesday and the Street is expecting a very good quarter from the firm. The CNBC-TV18 poll has predicted a consolidated revenue growth of 6.3 percent quarter-on-quarter and it will be led by the India mobile business which had witnessed price hikes.
A 10 percent revenue growth quarter-on-quarter is expected for the company's India mobile business, which is above 58 percent of the company's overall revenues.
The industry had hiked tariffs towards November-end and that is going to lead to the top line performance. The average revenue per user (ARPUs) is also seen up 10 percent on a quarter-on-quarter basis.
Both, Vodafone Idea and Reliance Jio, had reported an increase of about 8 to 10 percent in the average revenue per user this quarter and the CNBC-TV18 poll is expecting Bharti Airtel to also report similar numbers.
Bharti Airtel's margins are expected expected to be stable around the 50 percent-mark, and profits could more than double on a quarter-on-quarter basis.
Subscriber addition on ARPUs will be important to watch. Also, the company has a target of hitting ARPUs of Rs 200 in the medium term, when will the next tariff hike take place and all eyes will be on the 5G auctions which are due sometime this year. Also, capital allocation could be a big price driver.
Disclosure: RIL, the promoter of Reliance Jio, also controls Network18, the parent company of CNBCTV18.com.