Airtel stock jumps 11% on revenue gains

Bharti Airtel's shares gained over 11 per cent on impressive fourth quarter financial performance, as the telecom major reported 15.1 per cent on year-onyear rise in revenue and a sharp jump in average revenue per user (Arpu).

Its shares closed at Rs

599.15, up 11.34 per cent on the BSE and went up to Rs

603 intra-day, setting a new

52-week high, as brokerages were impressed with the results and expect further revenue benefits accruing to the company from expected telecom tariff hike in the next twothree years.

Other telecom stocks also played catch up as Vodafone Idea shares gained 16.92 per cent and MTNL, 1.93 per cent.

However, Airtel reported a net loss of Rs 5,237 crore for the March quarter, as compared to a net profit of Rs 107 crore in the corresponding period last year due to an exceptional item of Rs 7,004 crore, mainly from reassessment of spectrum dues.

Airtel’s consolidated Q4 revenues at Rs 23,723 crore were up 15.1 per cent year on year. The company's board on Monday, okayed a dividend of Rs 2 on shares of Rs 5 face value.

Arpu for the quarter rose to Rs 154 compared to Rs

123 YoY. The lockdown situation would aid Arpu growth in the medium term, a report from Edelweiss said.

Kotak Securities said, "Bharti's 4Q FY20 print was solid on all fronts—16 per cent on-quarter growth in India wireless revenues, 27 per cent onquarter growth in India wireless Ebitda, healthy subscribers additions, strong data volume growth.”