Bharti Hexacom Reports 66.4% Profit Jump to ₹421 Crore in Q2 FY25 on Strong ARPU Growth

Bharti Hexacom Ltd., a subsidiary of Bharti Airtel Ltd., has reported robust financial results for the quarter ending September 30, 2024 (Q2 FY25). The company's net profit witnessed a substantial 66.4% year-on-year surge, escalating to ₹421 crore from ₹253 crore in the corresponding quarter last year. On a sequential basis, net profit climbed 7.5%. Revenue from operations also showed healthy growth, increasing by 10.5% year-on-year to ₹2,317 crore, with a 2.4% rise compared to the previous quarter.

This strong performance was primarily driven by an increase in Average Revenue Per User (ARPU), which rose to ₹251 from ₹228 a year ago, coupled with higher data consumption and increased smartphone customer additions. The average monthly data usage per customer grew by 27% year-on-year to 30.7 GB, with smartphone customers now constituting 78% of the total mobile base. Furthermore, the Homes and Offices business segment delivered an impressive 46.9% year-on-year revenue growth.

EBITDA for the quarter increased by 20.1% year-on-year to ₹1,256 crore, with margins expanding to 54.2%. EBIT also rose significantly by 37.6% year-on-year to ₹702 crore. The company's overall customer base reached 28.60 million. Bharti Hexacom also improved its financial standing, with its net debt to EBITDAaL ratio falling to 0.64 times from 1.35 times a year prior.

Impact: This strong financial performance demonstrates the company's operational efficiency and market position, indicating positive momentum in the Indian telecom sector. It may lead to increased investor confidence and potentially a positive market reaction for Bharti Hexacom and its parent company. Impact Rating: 7/10

Difficult Terms Explained: * **ARPU (Average Revenue Per User)**: The average amount of revenue a telecom company generates from each subscriber over a specific period, typically a month or quarter. * **EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization)**: A financial metric that measures a company's operating performance before accounting for interest expenses, taxes, depreciation, and amortization. It provides insight into the profitability of the core business operations. * **EBIT (Earnings Before Interest and Taxes)**: A measure of a company's operating profit before accounting for interest expenses and income taxes. It reflects the profit generated from a company's operations. * **EBITDAaL (EBITDA after lease)**: A variation of EBITDA that includes the deduction of lease payments, offering a more comprehensive view of operational cash flow after significant lease obligations. * **YoY (Year-on-Year)**: A comparison of a financial metric from the current period against the same period in the previous year. * **QoQ (Quarter-on-Quarter)**: A comparison of a financial metric from the current quarter against the immediately preceding quarter. * **Basis Points**: A unit of measure used in finance, where one basis point is equal to one-hundredth of a percentage point (0.01%). For instance, a 100 basis point increase signifies a 1% increase. * **FTTH (Fiber to the Home)**: A broadband internet delivery method that utilizes fiber optic cables to connect the customer's premises directly to the internet service provider's network, enabling significantly higher internet speeds.