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Bharti Airtel's Q2 earnings preview: Here’s what to expect

Updated : October 29, 2019 10:01 AM IST

Bharti Airtel’s Q2FY20 numbers were expected to be released in the post-market hours on Tuesday before the company pulled the plug on its plans in the wake of Supreme Court's Thursday verdict on adjusted gross revenues (AGR) of telecommunications firms.

The telecom giant said it will announce its Q2 numbers next month after reviewing the apex court's judgement. Airtel owes Rs 21,682 crore to the Department of Telecommunications (DoT).

Here's Airtel's earnings preview before its last minute cancellation:

The street focus will be on the company's plan following the Supreme Court order which was uploaded late Friday evening that said telecom companies will have to make the adjusted gross revenues (AGR) payments within three months.

On a consolidated basis, revenue growth of around 1 percent is expected, led by the company's African business. Airtel's Africa unit last week reported revenue growth of 6 percent on a sequential basis.

In India, Airtel's wireless business is expected to be muted. Q2 is seasonally weak and it wasn't helped by temporary disruptions in various circles like Jammu and Kashmir as well as floods in some other states.

The margins are expected to come down to about 39 percent from 41 percent, while average revenue per user (ARPU) is expected to moderate. ARPUs were at Rs 129 per month for Airtel's India wireless business but now that the company has consolidated all the Tata subscribers, which are typically low ARPU subscribers, the figure is expected to decline.

Losses were seen at about Rs 1,328 crore, according to a CNBC-TV18 poll but the key metric to track will be the impact on the fixed line business as Reliance Jio has also launched its broadband services.

Disclosure: Reliance Industries, the parent company of Reliance Jio, owns Network 18 that publishes CNBCTV18.com.
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