Consolidated EBITDA grew 2% QoQ (in line) in 4QFY21 on the back of India mobile EBITDA growth of 4% (in line), even without a tariff hike, led by steady subscriber gains. The miss in estimate was on lower than estimated flattish ARPU and higher opex curbing incremental EBITDA margin at 40% v/s our expectation of 60-65%. Bharti’s consistent and commendable rise in 4G subscribers/ARPU/India mobile EBITDA of 32%/7%/32% over the last four quarters, translating to better FCF, should continue. We expect 17%/21% consolidated/India mobile EBITDA CAGR over FY21-23E, without factoring a tariff hike. Maintain Buy.

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