Analysts reiterated their ‘buy’ ratings on Bharti Airtel Ltd. on its higher average revenue per user, 4G subscriber additions and growth in Africa unit in the third quarter.
The carrier’s net profit fell over the preceding quarter, missing estimates, as finance costs and expenditure, including network operating expenses, access charges, licence fees and marketing expenses jumped.
Bharti Airtel added 30 lakh 4G customers in the third quarter, and 3.41 lakh users in home business. Its ARPU—the amount an operator earns per subscriber per month—rose 6.5% sequentially to Rs 163.
Separately, its board has approved a Rs 7,500-crore fundraise through various debt instruments.
Shares of Bharti Airtel gained as much as 1% intraday on Wednesday. Of 34 analysts tracking the stock, 32 recommend a ‘buy’ and one each suggest a ‘hold’, and a ‘sell’, according to Bloomberg data. The average of the 12-month consensus price targets implies an upside of 21.7%.