Bharti Hexacom Ltd., a subsidiary of telecom giant Bharti Airtel, has reported impressive financial results for the first quarter ending June 30, 2024. The company's net profit saw a substantial year-on-year (YoY) increase, and revenue from operations also marked a significant rise.

Key Financial Highlights:

• Net Profit: Bharti Hexacom's net profit surged by an astounding 101.90% YoY, reaching ₹511.2 crore for Q1 FY25. This marks a notable jump from ₹253.2 crore in the same period last year. Quarter-on-quarter, the net profit increased by 129.65% from ₹222.6 crore in Q4 FY24.

• Revenue: The company's revenue from operations grew by 13.6% YoY, totaling ₹1,910.6 crore in Q1 FY25, up from ₹1,681.7 crore in the corresponding period of the previous fiscal year.
   

Operational Metrics:

• ARPU: The Average Revenue Per User (ARPU) for mobile services rose to ₹205 in Q1 FY25, up from ₹194 in Q1 FY24. This increase was driven by a continued focus on quality customer acquisitions and an improved service mix.

• Mobile Data Consumption: There was a significant 30.6% YoY increase in mobile data consumption, with customers averaging 25.7 GB per month.

• Customer Additions: The Homes and Office business added 16,000 new customers in Q1 FY25. The number of 4G/5G data customers increased by 2.8 million YoY and 0.7 million quarter-on-quarter, now making up 73% of the overall mobile customer base.
   

Revenue Growth:

• Mobile Services: Revenue from mobile services saw a robust 12.9% YoY increase, bolstered by higher smartphone additions, an improved service mix, and a rise in ARPU.

• Homes and Office Business: This segment maintained strong momentum, with a 21.1% YoY revenue growth. This was achieved through the company’s strategy to expand its coverage in new cities and deepen its presence in existing markets.
   

Profitability and Margins:

• EBITDA and Margins: Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) stood at ₹912 crore, with an EBITDA margin of 47.7%, reflecting a YoY decline of 313 basis points (bps).

• EBIT and Margins: Earnings Before Interest and Taxes (EBIT) were ₹416 crore, with an EBIT margin of 21.8%, marking a YoY decline of 443 bps.

• Net Income: The net income before exceptional items was ₹193 crore, a 23.7% YoY decrease. However, after accounting for exceptional items, the net income rose significantly to ₹511 crore, a 101.9% YoY increase.
   

Market Reaction:

The results were announced after the close of market hours. Following the announcement, shares of Bharti Hexacom Ltd. ended the trading session at ₹1,113.85, down by ₹33.80 or 2.95% on the BSE. Despite the day's decline, the stock has gained over 21% so far this year.
 

Conclusion:

Bharti Hexacom's Q1 FY25 results showcase strong financial performance, with substantial increases in net profit and operational revenue. The company's strategic focus on quality acquisitions, service mix improvements, and expanding its customer base in both mobile and fixed-line segments has driven impressive growth metrics, despite some declines in profitability margins. The robust growth in ARPU and data consumption highlights the company's ability to capitalize on the increasing demand for high-quality telecom services.