Bharti Hexacom Ltd Share Price – NSE  /  BSE

Telecomm-Service, Small Cap

Bharti Hexacom will hold a meeting of the Board of Directors of the Company on 5 August 2024.

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The brokerage views the company as the best pure-play in the Indian communication solutions market. Bharti Hexacom operates in underpenetrated areas with low telecom density and internet penetration, which is driving subscriber growth and increasing average revenue per user (ARPU). Despite a slightly lower ARPU compared to Bharti Airtel, the company is expected to deliver superior returns. The broker forecasts tariff hikes and decreasing capital expenditures, leading to increased dividend payouts. Overall, the brokerage expects strong revenue and EBITDA growth for the company.

Last week another global brokerage also initiated coverage on Bharti Hexacom with a 'buy' call and a target price of Rs 1,240.

Bharti Hexacom runs mobile services in Rajasthan and the Northeast telecommunication circles of India, comprising Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura. The company offers its services under the brand Airtel.

The company’s standalone net profit jumped 10.25% to Rs 223 crore in Q4 FY24 as compared with Rs 202 crore in Q4 FY23. Revenue from operations increased 7.8% to Rs 1,868 crore during the quarter as compared with Rs 1,733 crore posted in the quarter ended 31 March 2023. Profit before tax (PBT) jumped 11.5% YoY to Rs 301 crore in Q4 FY24.

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Revenue from operations increased 7.8% to Rs 1,868 crore during the quarter as compared with Rs 1,733 crore posted in the quarter ended 31 March 2023.

Profit before tax (PBT) jumped 11.5% YoY to Rs 301 crore in Q4 FY24.

EBITDA stood at Rs 914 crore in Q4 FY24 as compared with Rs 797 crore in Q4 FY23, registering the growth of 14.6%. EBITDA margin improved by 108 bps to 48.9% in Q4 FY24 as against 46% in Q4 FY23.

During the quarter, overall customer base stands at approximately 28 million and capex stood at Rs 492 crore.

Mobile data traffic at 1,364 PBs in the quarter with a healthy YoY growth of 26%. Mobile revenues grew by 6.8% YoY on account of improved realisation as well as strong 4G/5G customer additions during the year.

Average revenue per user (ARPU) for the quarter stood at Rs 204 as compared to Rs 189 in Q4 FY23 on the back of continued mix improvement and focus on quality acquisitions.

The telecom provider rolled out approximately 830 towers in the quarter to further strengthen its network coverage and provide seamless connectivity.

Homes and Office business maintains its rapid growth trajectory and delivered a revenue growth of 26.6% YoY, result of company’s strategy to rapidly expand cities under coverage and deepening presence in cities and towns.

Net Debt-EBITDA ratio (annualized) and including the impact of leases as on 31 March 2024 is at 2.14 times. The firm continues to optimize the capital structure with judicious capital allocation to strengthen the balance sheet.

By the end of the quarter, the company had 25,704 network towers as compared to 21,672 network towers in the corresponding quarter last year. Revenue per tower per month fell 9.9% to Rs 2,39,261 in March 2024 from Rs 2,65,567 in March 2023.

Meanwhile, the company’s board has declared a final dividend of Rs 4 per fully paid-up equity share of face value of Rs 5 each for FY24.

The counter entered the stock market on 12 April 2024. It was listed at Rs 755.20, exhibiting a premium of 32.49% to the issue price of Rs 570.

Bharti Hexacom runs mobile services in Rajasthan and the Northeast telecommunication circles of India, comprising Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura. The company offers its services under the brand Airtel.

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Net profit of Bharti Hexacom rose 10.25% to Rs 222.60 crore in the quarter ended March 2024 as against Rs 201.90 crore during the previous quarter ended March 2023. Sales rose 7.82% to Rs 1868.00 crore in the quarter ended March 2024 as against Rs 1732.50 crore during the previous quarter ended March 2023.

For the full year,net profit declined 8.16% to Rs 504.40 crore in the year ended March 2024 as against Rs 549.20 crore during the previous year ended March 2023. Sales rose 7.75% to Rs 7088.80 crore in the year ended March 2024 as against Rs 6579.00 crore during the previous year ended March 2023.

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