Bharti Hexacom Q4 Results: PAT UP 10% To Rs 223 Crore, Rs 4/Sh Dividend Declared

Telecom Major Bharti Hexacom on Tuesday announced its financial results for the fourth quarter of the fiscal year 2023-24. The company reported a robust net profit of Rs 223 crore, marking a notable increase of 10.2% compared to the same period last year.

This growth was primarily attributed to the strong addition of 4G/5G customers and an increase in average revenue per user (ARPU).

The fourth-quarter revenues stood at Rs 1,868 crore, reflecting a healthy growth of 7.8% year-on-year.

Additionally, the company's earnings before interest, taxes, depreciation, and amortisation (EBITDA) witnessed a significant uptick, reaching Rs 914 crore, up by 14.6% year-on-year.

Notably, the EBITDA margin also saw improvement, rising from 46.0% in Q4'23 to 48.9% in Q4'24, driven by operational efficiency initiatives such as the 'War on Waste' programme.

The board of the corporation has recommended a final dividend of 4 rupees for each fully paid-up equity share with a face value of 5 rupees.

Bharti Hexacom recorded a remarkable 7.7% year-over-year growth on a comparable basis, with revenues for the whole fiscal year 2023-24 reaching Rs 7,089 crore. With an EBITDA margin of 49.2%, the company's EBITDA was Rs 3,490 crore, a notable rise of 534 basis points from the previous year.

The company's mobile segment witnessed a growth of 6.8% year-on-year, driven by increased realisation and strong additions of 4G and 5G customers throughout the year. The average revenue per user (ARPU) for the quarter stood at Rs 204, compared to Rs 189 in Q4'23, showcasing a positive trend attributed to continued mix improvement and a focus on quality acquisitions.

"We are still gaining a significant portion of the 4G/5G market, and we have added 2.5 million new 4G/5G data users to our network since last year-a YoY growth of 14.5%. We maintain our industry-leading ARPU while increasing the average monthly data use per data client to 24.5 GB," the company said in a statement.

The company's strategic initiatives to expand its network coverage bore fruit, with the rollout of approximately 830 towers in the quarter.

Over the past 12 months, the company has deployed around 4,000 towers, further enhancing coverage and connectivity in both rural and urban areas.

Under the "Airtel" brand, Bharti Hexacom provides fixed-line, broadband, and consumer mobile services to customers in Rajasthan and the North East telecommunication circles in India, which include the states of Arunachal Pradesh, Manipur, Meghalaya etc.

The home and office business segment continued its rapid growth momentum, registering a remarkable revenue growth of 26.6% year-on-year. This growth was fueled by the company's strategy to expand its presence in cities and towns, resulting in the addition of 16,000 customers during the quarter, bringing the total customer base to 0.3 million.

Bharti Hexacom's partnership model with local cable operators has played a pivotal role in accelerating rollout activities, with operations now live in 93 cities.

Bharti Hexacom's strong financial performance in the fourth quarter and throughout the fiscal year underscores its resilience and ability to capitalise on market opportunities. With a focus on enhancing network infrastructure, expanding its customer base, and driving operational efficiency, the company remains well-positioned for sustainable growth in the dynamic telecommunications landscape.