Bharti Airtel stock traded at ₹ 791.50 gaining 1.14% on Wednesday’s trading session, The stock touched an intraday high of ₹797.40 apiece in the opening bell.
Today’s stock price movement is observed after the company declared strong Q4 results. The company’s Board also recommended a final dividend of ₹4 per fully paid-up equity share of face value ₹5 each for the financial year 2022-23.
Bharti Airtel’s financial position has significantly improved over time.
For a year-on-year comparison, according to Consolidated Financials, the revenues significantly increased 19.3 percent from ₹ 1,16,546 crores during FY 21-22 to ₹ 1,39,145 crores in FY 22-23.
Similarly, the net profit climbed 38.3 percent from ₹ 8,305 crores during FY 21-22 to ₹ 11,535 crores in FY 22-23. And net profit surged 89% quarter-on-quarter to ₹3,005.6 crore for the fourth quarter ended 31 March 2023. It was ₹1,588.2 crore in Q3FY23.
Telecom companies require sufficient cash flow to operate. However, as competition in the industry has increased over the last two fiscal years, the company has focused on some strategies such as cost-cutting measures, acquiring quality customers, which has resulted in 7.4 million new 4G customers, and launching a competitive service plan to increase retention rate.
Bharti Airtel is a leading global telecommunications company with operations in countries across Asia and Africa. The company ranks amongst the top 3 mobile service providers globally in terms of subscribers. In India, the company’s product offerings include 2G, 3G, and 4G wireless services, mobile commerce, and many more services including national & international long-distance services to carriers.
The fundamental profitability ratios exhibit operational efficiencies such as return on equity (ROE) and return on capital employed (ROCE). ROE increased from -25.58 percent during FY 20-21 to 6.39 percent in FY 21-22 and ROCE, keeping the time frame the same, took a shift from 7.08 percent to 10 percent and debt-to-equity ratio stood at 2 for FY22 which is slightly declining YOY.
According to the latest data pertaining to the shareholding pattern, the promoters hold a 55.02 percent stake, and Foreign Institutional Investors (FIIs) have a 20.97 percent stake in the company for FY 22-23.
Written by Omkar C
