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Q1 FY23

lupin ltd.
Business, Equities, Markets, Research, Result Updates - October 3, 2022

Lupin ltd consolidated revenue fell by 14% YOY to Rs 3604 Cr.

In Q1FY23, Lupin ltd consolidated revenue fell by 14% YOY to Rs 3604 Cr.

Lupin limited is a multi-national pharmaceutical company based in Mumbai. The company specialises in branded and generic formulations, APIs and advanced drug delivery systems in biotechnology. It has 18 manufacturing sites and 9 R&D sites across the globe.

Lupin ltd consolidated revenue fell by 14.9% YOY to Rs 3604 Crores, in Q1FY23, due to subdued performance of its US business.EBITDA was down by 76% YOY to Rs 238 Crores. EBITDA margin falls by 1680 basis points.YOY to 6.6% due to raw martial inflation, higher employee spends and other expenses. Consequently , company reported a loss of Rs 89 Crores. As against of Rs 542 Crores profit a year ago. Company increasing market share, new product ,and scaling up of the Indian business indicate well for the company  performance.

Financial highlights :

In Q1FY23, lupin ltd consolidated revenue declined by 12.3% YOY and QOQ to Rs 3.74Crores.it is mainly due to muted performance in the US business. Revenue from the US business declined by 24.2% YOY and 28.7%Quarter On Quarter to Rs 1010 Crores due to inventory writw down , shelf stock adjustments and price erosion. Company s Indian revenue stood at Rs 1492 Crores which is down by 8.85 YOY and up by 10.4% QOQ DRIVEN BY A 9.9% Quarter on quarter driven by a 9.9 % QOQ growth in domestic formulations. API revenue grew by 3.7% YOY and 15.8% QOQ to Rs 255 Crores. While revenue from growth markets rose by 27.3% YOY and 11.2% QOQ to Rs 424 Crores.

Margins impacted due to raw material inflation:

Gross margin of company contracted by 720 basis points YOY to 55.3% as the company pared down inventories and took shelf shock adjustments on select products consequently; EBITDA fell by 76% YOY to Rs 238 Crores. Company owing to further price erosion in the US business and inflation in input materials. EBITDA margin thereby shrink  by  16.8% YOY to 6.4% reported a loss stood at Rs 89  Crores as against Rs 542 Crores .

Quarter highlights:  

Capex stood at Rs 161 Crores against Rs 106 Cr in Q1FY22 and Rs 158 Crores in Q4FY22. R&D expense was at Rs 348 Crores against Rs 374 Crores in Q1FY22 And Rs 344 Crores in Q4FY22. Total marketed generic products stood at 167. It launched cyclosporine ophthalmic in the US in the quarter. Current pipeline includes 54 FTF, OF Which 21 exclusive FTFs are awaiting for the USFDA approval. In India business, the company has a revenue run rate of more than Rs 1000 Crores. In cardiac and anti-diabetics .GI, pain and gynae grew in double digits.

Valuation:

The EPS was Rs. -1.96, compared to Rs. 10.15 in June 2021. The ROCE and ROE were at  -7.16% and -11.8%, respectively. The book value of a stock is Rs 267. The company’s asset turnover ratio was 0.73x. The scrip is trading at Rs.717, up by 5.40%. on Monday.

Astral Pipes posted a net profit of Rs. 96 Cr.

 

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DLF Ltd posted a consolidated revenue of Rs 1516 Crores.
Business, Editorials, Equities, Markets, Real Estate, Research - September 27, 2022

DLF Ltd posted a consolidated revenue of Rs 1516 Crores.

DLF Ltd posted a consolidated revenue of Rs 1516 Crores.

DLF Ltd’s consolidated revenue in the first quarter of the fiscal year was Rs 1516 crores, a 22% increase year on year. Gross margins continue to operate in the 50% plus range. The Q1 23 margin stood at 53%. EBITDA stood at Rs. 488 crores. There is a drop in this quarter due to the scaling up phase and investing in the growth of the company. The increase in staff costs is driven by organisation scale up, and other expenses are driven by business scale up costs of marketing and brokerage Reflecting a 39% increase year on year. This was largely driven by a significant reduction in the financing costs, along with growth in the JV profits.

Demand continues to exhibit sustained momentum.

The high demand for luxury homes has been a key trend that is expected to continue. In addition, the residential business maintains its consistent performance, with new sales bookings of Rs 2040 crores, representing a 101% year-on-year increase. The Camellias company’s luxury product offering remained the preferred destination across the super luxury segment and delivered a healthy sales booking of Rs 350 crores during the quarter. The company’s new product remains to continue contributing to the sale of Rs 1532 crores during the quarter, which was approximately 75%.

DLF Cyber City Developers Limited consolidated results for Q1 Financial Year ’23.company witnessed steady performance across the portfolio. The retail business continued its growth path and delivered healthy growth. Rental income grew by 20% year-on-year, driven by a strong growth in retail revenue. Consolidated revenue of Rs. 1,260 crores as compared to Rs. 1,041 crores last year, reflecting a21% year-on-year growth. EBITDA at Rs.961 crores, reflecting a year-on-year growth of 18%, and net profit at Rs.323 crores, reflecting a year-on-year growth of 60%
.

Retail businesses continue to exhibit steady growth with an improvement in consumption trends. Organized retail is expected to gain further share with a strong preference for quality assets at established locations. Given these tailwinds, company remain committed to growing the portfolio across multiple geographies and retail presence in the next few years. Companys strong balance sheet and healthy cash flow generation, coupled with a diversified pipeline of quality offerings, provide a unique opportunity to leverage this up cycle.

VALUATIONS:

The EPS was Rs. 1.90, compared to Rs. 1.36 in June 2021. The ROCE and ROE were at 4.84% and 4.61%, respectively. The stock was trading at a P/E ratio of 54.3x. The company’s asset turnover ratio was 0.11x. The scrip is trading at Rs.395, up by 2.61% on Tuesday.

 

Astral Pipes posted a net profit of Rs. 96 Cr.

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Astral Pipes posted a net profit of Rs. 96 Cr.
Business, Editorials, Equities, Markets, Research - September 17, 2022

Astral Pipes posted a net profit of Rs. 96 Cr.

Astral Pipes posted a net profit of Rs. 96 Cr.

Astral posted consolidated revenue growth of 73.2% YoY in Q1FY23, majorly led by growth in plastic and adhesive. In the plastics segment, the company reported volume growth of 48.5% YoY, which was on par with the industry growth, indicating that Astral gained market share in the plumbing segment. The company’s gross margins fell by 717bps YoY due to a fall in PVC prices, leading to an inventory loss of Rs 25 Cr. The raw material and PVC prices are falling continuously and reached Rs 102/kg in July ’22 from Rs 120/kg in April-Jun 22. The company’s EBITDA margins fell by 433bps YoY due to a fall in its gross operating profitability. However, its reported PAT grew by 27.0% YoY at Rs. 96 Cr. as compared to sales due to a fall in operating profitability.

Volume expansion to boost growth:

Astral has reported volume growth of 10% in the piping segment, the highest among peers in the last 4 years. This reflects that Astral is gaining market share in the plumbing segment. The raw material and PVC prices have been falling continuously, which would help in improving the gross margins of the company after inventory is stabilised. Astral could deliver consolidated margins in the range of 17% to 18% in the upcoming quarters. Furthermore, Astral’s foray into valves, resins, sanitary ware, and tanks would add revenue growth in the upcoming years.

The company estimates that newly launched products and segments, including tanks, drain-pro, ball-valve, sanitary ware and faucets, and paint business, will be able to generate revenue of Rs 1,500 Cr over the next 5 years. Astral has invested Rs 1,000 crores in capex over the last five years, with the funds being used in the coming years. Therefore, the company is confident that it will be able to grow not only in its existing product portfolio but also accrue additional revenue of Rs 1,500 Cr in the next 4–5 years by leveraging its new products and categories. In April ’22, the company entered into a definitive agreement to acquire a controlling 51% stake in the operating business of Gem Paints Private Limited. ‘Gem’ paints have been manufacturing industrial and decorative coatings in South India.

Valuations:

The EPS was Rs. 4.42, compared to Rs.3.68 in June 2021. The ROCE and ROE were at 29.6% and 22.6%, respectively. The stock was trading at a P/E ratio of 94.3x. The company has an asset turnover ratio was 1.45x.The scrip is trading at Rs.2339, down by 6.65% on Friday.

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Tarsons Products earned Rs. 29 crores in net profit.
Business, Editorials, Equities, Markets, Research - September 16, 2022

Tarsons Products earned Rs. 29 crores in net profit.

Tarsons Products earned Rs. 29 crores in net profit.

On the high COVID-led base for Q1FY22, revenues fell 0.4% year on year. The total revenue was Rs 85 Cr and the net profit was Rs 29 Cr on a consolidated basis. The company reported a standalone revenue of Rs. 69 crore and a net profit of Rs. 20 crore.The operating profit was recorded at Rs. 44 Cr., with a pre-tax income of Rs. 39 Cr.

Margins shrink.

Domestic business fell around 6% YoY and 20% QoQ. The sequential decline was due to seasonality, with Q1 tending to be the weakest quarter. The company took a price hike in Q1FY23, which will begin to reflect in the next few quarters. The export business grew 11.1% YoY. This, coupled with elevated raw material prices, resulted in dragging gross margin down by 280bps YoY to 79.1%. The SG&A expenses grew 20.7% YoY, led by higher freight and promotion expenses. As a result, the EBITDA margin fell 760 basis points year on year (-680 basis points quarter on quarter) to 45.4%. The company expects to maintain healthy margins in the coming years thanks to improved product mix, increased contribution from new products, and in-house sterilisation, partially offset by higher costs associated with the start-up of new plants.

The PCR has received a good response from the customers in terms of quality. Specialised resin prices have stabilised, whereas packaging and paper costs have started declining. The revenues will be driven by growth in both domestic and export markets. We expect the company to maintain healthy margins in the coming years. The increased market share and strong growth in end-user industries will benefit the company. The major risk for the company is intensified competition and disruption in the distribution network.

Valuations:

The EPS was Rs. 5.54. The ROCE and ROE were at 35.3% and 27.4%, respectively. The stock was trading at a P/E ratio of 46x. The debt-to-equity ratio was 0.04x, whereas the asset turnover ratio was 0.72x. The interest coverage ratio stood at 33x. The scrip was trading at Rs.870, up by 1.02% on Thursday.

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Control Print declared a strong set of Q1FY23 results.
Business, Editorials, Equities, Markets, Research - September 16, 2022

Control Print declared a strong set of Q1FY23 results.

Control Print declared a strong set of Q1FY23 results.

The key highlight for the quarter was higher gross and EBIDTA margins YoY and QoQ on account of better product mix. The revenues grew by 19.7% YoY to 65.1 crore. Gross margins expanded QoQ by 440 bps to 63% vs. 58.7% in Q1FY22, which was mainly on account of a higher share of consumables in the overall revenues. which also led to EBIDTA margins coming in at 27.3% in Q1FY23 vs. 23.7% QoQ and 21.7% YoY. The PAT came in at 11.7 crore, up 105% YoY.

Strong financials:

The company, as of FY22, has an installed base of more than 15,000 printers. The consumable goods saw good traction during the quarter, while building materials, pharmaceuticals, and bearings also expanded their base. The company suffered a bit due to chip shortages and supply chain issues, but things will get back to normal in the coming 1-2 quarters. Dairy, healthcare, packaged food, cable, and FMCG also provided good contributions to business. The company is now focusing on developing software for customers so they can provide customized support to them. Telecalling is also helping companies acquire new customers. Imported raw materials account for 25-27% of total imports.The company has sold around 756 printers, of which CIJ printers are dominating the quantity with over 55–65% of the total share. The company is enjoying a higher installed base for printers as during COVID, printers’ sales were good. They offer seven different types of printers, of which CIJ and TIJ are the most common. The higher percentage of consumables in revenue resulted in higher gross and EBITDA margins. The current utilization level stands at 55-60 companies per hour. Capacity can be increased as needed.

Valuations:

The EPS was 7.40 rupees. The ROCE and ROE were at 18.8% and 15.3%, respectively. The stock was trading at a P/E ratio of 18.5x. The asset turnover ratio was 0.84x. The interest coverage ratio stood at 47.7x. The scrip was trading at Rs.486, up by 1.06% on Thursday.

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Krishna Institute reported a net profit of Rs. 79 Cr.
Business, Editorials, Equities, Health, Markets, Research - September 16, 2022

Krishna Institute reported a net profit of Rs. 79 Cr.

Krishna Institute reported a net profit of Rs. 79 Cr.

KIMS reported a net profit of Rs. 79 Cr., and decrease from Rs. 83 Cr. in March 2022 and Rs. 92 Cr. year on year. The revenue in Q1 FY22-23 increased to Rs. 459 Cr from Rs. 372 Cr in March 2021 and Rs. 473 Cr in June 2021. The operating profit was Rs. 137 in the current quarter versus Rs. 114 Cr. in the March quarter.

The expansion will be done using a cluster-based approach.

KIMS has entered into a definitive agreement to acquire a 51% stake in Kingsway Hospitals, Nagpur. This is one of the largest private multi-specialty hospitals in Nagpur, promoted by the Sancheti family and a few eminent doctors. The hospital was commissioned in 2019 with a 334-bed capacity, expandable to 500 beds. KIMS will pay upfront Rs. 800 crore for its 51% stake, which will be used to repay existing debt. After this infusion, the JV will still be left with Rs 150 Cr of debt.

Acquisition cost works out to be Rs 90 lakh/bed.

The acquisition cost works out to be Rs 90 lakh/bed. The acquisition will be completed by Sept. Assuming the operating leverage plays out, Kingsway hospital will have 250 operational beds with a 53% occupancy. For FY22 and FY23 (4 months), Kingsway generated Rs. 1700 Cr. and Rs. 47,500 Cr. of revenues, respectively. ARPOB stands at Rs 29,000/day and has turned EBIDTA positive within 3 years of operation.

KIMS management intends to enhance occupancy from current levels, as well as bring operational efficiencies and synergies. The Kingsway hospital’s COGS stands at 28-29% of sales versus KIMS’s 22% of sales. The management sees profitability scaling up from current levels and reaching 15-20% OPM over the next 2-3 years. KIMS currently has net cash of Rs 200 Cr. and thereby, the Kingsway acquisition will be funded through internal accruals. Currently, the payor mix stands at 80%, comprising of cash plus insurance.

The management, in its cluster-based approach, is looking forward to replicating the AP and Telangana models in the Maharashtra and Karnataka regions. KIMS plans to commercialise 1500 beds over the next 4–5 years across Maharashtra and the Karnataka region. The expansion will be a combination of inorganic and greenfield expansion. More importantly, the company will partner with local doctors and consultants in specific micro-markets to generate better footfalls and achieve a faster breakeven. KIMS will have full control of decision-making in such a partnership.

Valuations:

In June 2022, the EPS was Rs. 8.74, compared to Rs. 10.08 in June 2021. The ROCE and ROE were at 14.8% and 15.6%, respectively. The stock was trading at a P/E ratio of 31.7x. The debt-to-equity ratio was 0.18x, whereas the asset turnover ratio was 0.99x. The interest coverage ratio stood at 29.5x. The scrip is trading at Rs.1241, down by 0.2% on Wednesday.

Dr. Lal Pathlabs reported a net profit of Rs. 58 Cr.

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Kaveri Seeds reported a net profit of Rs. 240 Cr.
Business, Editorials, Equities, Food, Markets, Research - September 16, 2022

LT FOODS reported an operating profit of Rs.166 cr.

LT FOODS reported an operating profit of Rs.166 cr.

LT Foods (LTF’s) declared its Q1 FY22-23 results with revenue rising 32.8% YOY to Rs 1,611 crore. The operating profit was up by 27.7% to Rs 166 crore and net profit went up by 23.28% YOY. Its profit margins recovered sequentially but contracted YOY. The net profit stood at Rs. 95 Cr, compared to Rs. 76 Cr. in June 2021. The revenue growth was on account of accelerated brand investments across various segments.

Margins under pressure:

The gross margin improved by 110bps YoY, aided by an improvement in product mix and higher realisation. However, EBITDA margin fell by 40 basis points year on year to 10.0% due to higher freight costs and additional brand investments.LTF has a strong focus on a value-added portfolio, which will support margin improvement in the long-term. The Health & Convenience product segments, which include ready-to-eat products, contributed 2% in FY22, an improvement from 1.5% in FY21. The company targets a 150 bps expansion in EBITDA margin through product mix, operational efficiency, and scale.
The green energy initiatives by the company will provide production efficiency. We anticipate that EBITDA margins will moderate in the near future due to higher costs, but will gradually improve thereafter. LTF’s consistent efforts on brand strengthening and distribution network expansion, as well as region and product diversification via organic and inorganic routes, have been the growth strategy.The recent acquisition in the Jasmine rice segment will strengthen market share. The re-opening of HoReCa channels is also aiding growth, while LTF’s strong focus on value-added products will improve margins.

Valuations:

LT Foods’ EPS was at Rs. 2.80 in June 2022, up from Rs. 2.27 in June 2021. The ROCE and ROE were at 14.8% and 15.6%, respectively. The stock was trading at a P/E ratio of 9.47x. The debt to equity ratio was 0.66x, whereas the asset turnover ratio was at 1.28x. The interest coverage ratio stood at 7.55x. The scrip is trading at Rs. 91.6, up by 2.92% on Monday.

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Jindal Stainless Steel reported a PAT of Rs. 329 crores.
Business, Editorials, Equities, Markets, Research, Research Reports, Result Updates - September 9, 2022

Jindal Stainless Steel reported a PAT of Rs. 329 crores.

Jindal Stainless Steel reported a PAT of Rs. 329 crores.
JSL reported a steady operational performance for the quarter,with a consolidated PAT of Rs.329 crore. JSL’s standalone operations reported a sales volume of 235530 tonnes and a total revenue of Rs.5336 crores. The standalone operations EBITDA/tonne came in at 22216/tonne, and the consolidated top line for the quarter was at Rs. 5474 crores, up 36% YoY but down 17% QoQ. For Q1FY23, JSL reported consolidated EBITDA of Rs. 549 crore, down 9% YoY and 35% QoQ. On a consolidated basis, JSL reported an effective tax rate of 23%, compared to 33% in Q1FY23. Hence, due to a lower-than-expected effective tax rate, JSL’s consolidated PAT came in higher. JSL’s consolidated PAT for Q1FY23 was at 329 crore, up 8% YoY but down 56% QoQ.

JUSL to be acquired:
The options are being reconsidered for the blast furnace capex, which was earlier considered in JUSL. The management was clear on the cost competitiveness of the pig iron route for 400 series production along with liquid ferrochrome. However, management was aware of the potential future balance-sheet stress caused by the investment, as well as the related-party transactions and roadblocks to a potential future merger. The management wants to minimise related-party transactions and is also looking at likely options for JSL to acquire JUSL and thereby maintain the favourable tenure of term loans present in JSL’s books.
There is a huge risk from Indonesian exports in the 200/300 series in India. Even for the industries linked to approval/accreditation, depending on the extent of interest from the Indonesian players, we see a possibility of imports increasing substantially. The government has already removed the anti-dumping duty on stainless steel imports (Indonesia is an FTT partner, and does not charge any import duty on stainless steel imports). Perhaps, given the size of the market, policy support may not be as readily forthcoming for stainless steel as it is for steel.

Valuations:
The EPS was Rs. 6.11 in the June quarter versus Rs. 14.00 in March 2022 and Rs. 6.21 in June 2022. The stock is trading at a PE ratio of 3.70x. The EBITDA was at 3.22x. The ROCE and ROE stood at 37.8% and 45.1%, respectively. The stock was trading at Rs.134 on September 8th, up by 0.90%.

 

 

Nestle India reported a net profit of Rs. 515 crores:

Genus Paper And Boards reports a net profit of Rs. 4.81 crores.

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Vodafone Idea reported lower margins-
Business, Equities, Research Reports - September 6, 2022

Vodafone Idea reported lower margins-

Vodafone Idea reported lower margins

Vodafone Idea reported a consolidated loss of Rs 7,295 crore in the June quarter as against Rs 7,312 crore in June 2021. The total revenue stood at Rs 10,410 crore, a YoY growth of 13.7%. The revenue metric improvement was largely a function of residual tariff hike pass-through and one extra day during the quarter, which led to 3.2% QoQ growth. Vodafone Idea’s ARPU for the quarter improve by 23.4 percent YoY to Rs 128, aided by tariff hikes. 

 

Restricted Competitiveness:

The subscriber base declined from 3.4 million to 240.4 million, with a churn rate of 3.5%. The 4G sub-base saw an addition of merely 0.9 million QoQ to 119 million. Data traffic/MOU increased 4%, 2% QoQ to 5.4 GB, 620 minutes, respectively. Data usage and subscriptions increased 4% year on year to 13.3 GB, but remained lower than peers, who use nearly 20 GB per month. Similarly, capex was at 840 crore vs. 1210 crore in Q4. The management reiterated its intent to raise tariffs by the end of the current calendar year, which will lead to a rise in ARPU. The net debt, at 1.982 lakh crore, was up by 1820 crore QoQ. The net debt includes deferred spectrum liability of 1.166 lakh crore, AGR liability of 67270 crore, and bank borrowing of 15200 crore. While the recent government measures ensure the survival of VIL, staying competitive will be a function of how quickly it raises funds. Substantial fundraising to meet capital spending to expand 4G network coverage, launch 5G and stay competitive  Improvements in subscriber churn and 4G subscriber metrics Many key risks for the company are its inability to raise funds and expand coverage to compete.

The company has acquired mid-band 5G spectrum in 17 priority circles and mmWave 5G spectrum in 16 circles. It has also acquired an additional 4G spectrum in three circles, i.e., in Andhra Pradesh, Karnataka, and Punjab, for 18799 crores, payable in 20 annual instalments of 1681 crores per annum. It did not specify any time frame for the 5G launch. The company expects cash EBITDA to improve as 5G spectrum deployment occurs. It will result in a reduction in SUC charges, while there will be some lower tower rent benefits. The Board of Directors has approved the allotment of 42.77 crore warrants to Vodafone Group on a preferential basis. This, coupled with the earlier preferential raise in Q4 of  4500 crore, takes the total fund infusion by the promoter groups to 4986 crore, largely to pay Indus Tower dues. The company recently agreed to convert interest accrued from the four-year moratorium into equity. It indicated that DoT has confirmed the NPV of Rs 16,300 crore. This equity conversion will lead to dilution with the government owning 33% in VIL and the promoters (Vodafone and Aditya Birla group) owning 50%.

Key Triggers

The outstanding debt will come down by a similar amount, with an annual interest cost savings of Rs 1200 crore from the same. The government also has the discretion to convert total deferred moratorium dues into equity at the end of four years. The guidelines for this are still awaited. VIL remains the weakest private telco. The need for capitalization is urgent, owing to the company’s impending debt repayment, lagging network spending, and continued relative market share loss. It is highlighted that recent government relief measures would ensure the survival of VIL, but the future growth outlook remains uncertain.

Valuations:

In the June quarter, the EPS was Rs. 2.27).The stock is trading at a PE ratio of 86.2x. The EBITDA was at 3.97x with an interest coverage ratio of 0.30x. The stock was trading at Rs. 9.28 on Septembe up by 3.69%.

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Bharti Airtel had another solid quarter.
Business, Equities, Markets, Research Reports - September 5, 2022

Bharti Airtel had another solid quarter.

Bharti Airtel had another solid quarter.

Bharti Airtel reported a 466% surge in consolidated net profit at Rs 1,607 crore for the quarter ending June 30, 2022, boosted by subscriber additions. It reported a net profit of Rs 284 crore in the year-ago period. The company’s consolidated revenue from operations rose 21% to Rs 32,805 crore in Q1FY23 as compared to Rs 27,064 crore in Q1FY22. In India, mobile services revenue increased 27% year on year to Rs 18,220 crore in the first quarter, up from Rs 14,305.6 crore. The digital TV customer base stood at 17.4 million in Q1FY2023.

Acquisition of 5G will raise the bar for innovation.

The company’s average revenue per user (ARPU) was Rs 183 in Q1FY23, against Rs 146 in Q1FY22. The ARPU of rivals Reliance Jio and Vodafone Idea for the same period was Rs 175.7 and Rs 128, respectively. The business continued to grow exponentially, up 41.9% YoY, led by healthy customer additions. The company mentioned in November that mobile ARPU needed to be at Rs 200 and ultimately at Rs 300 for a financially healthy business model.

The company continued to deliver strong and sustained growth at 4.5% QoQ. The EBITDA margins were at 50.6%. The enterprise and home businesses have strong momentum and delivered strong double-digit growth, improving the diversity of the overall portfolio. Airtel’s strategy of winning with quality customers continues to yield well.

As India gets ready to launch 5G, they are well positioned to raise the bar on innovation. They are also confident in meeting the emerging needs of discerning customers looking for speed, coverage, and latency. The astute spectrum strategy over the last few years, as they have bolstered the mid-band spectrum, is designed to deliver the best experience at the lowest total cost of ownership. The firm’s 4G customers rose by 20.8 million YOY and by 4.5 million QOQ. Mobile phone data consumption rose by 16.6% YoY. Monthly consumption per mobile data customer was 19.5 GB.

Airtel will lead India’s 5G revolution by acquiring an ideal spectrum bank at the lowest possible cost for the best 5G experience and 100x capacity enhancement; purchased 19,867.8 MHz spectrum in the recently concluded 5G spectrum auction for Rs 43,040 crore;

The company has been raising money to fund its digital ambitions, including developing home broadband, data centers, and cloud adoption as it prepares to launch its next-generation 5G services in the country.

Valuations:

The EPS in the June quarter was Rs. 2.73, compared to Rs. 3.41 in the March quarter and 0.48 in June 2021. The stock is trading at a PE ratio of 86.2x. The EBITDA was at 9.13x with an ROE and ROCE of 12.0% and 5.86%. The company has a low-interest coverage ratio of 1.75x. The stock was trading at Rs.740 on September 5th, up by 0.63%.

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