look news india
In the country’s telecom sector, the battle for supremacy between Bharti Airtel and Mukesh Ambani’s Reliance Jio has once again reached a very interesting turn. Indian telecom giant Bharti Airtel has outperformed expectations in its recent quarterly financial results, leaving Mukesh Ambani-led Reliance Jio Platforms behind on several key financial parameters. Due to this explosive and historic performance of Airtel, huge buying of the company’s shares was seen in the Indian stock market and the share prices reached near the new all-time high. Analysts believe that the increase in average revenue per user (ARPU) and the rapid expansion of 5G network has given Bharti Airtel a competitive edge, which has changed the political and economic equation of the entire telecom market.
Bharti Airtel’s performance in the recent quarter of the financial year has been much better than the estimates of market analysts. A huge increase has been recorded in the net profit and consolidated revenue of the company. The strongest aspect of this entire report was that Airtel’s Average Revenue Per User (ARPU) has crossed the Rs 200 mark, which is much higher than the ARPU of Reliance Jio. ARPU is considered to be the most important parameter measuring the financial health of any telecom company and the quality of its customers. Airtel’s growing postpaid subscriber base, increase in data consumption and recent prudent hike in tariff rates have played a key role in strengthening the company’s margins.
As soon as Bharti Airtel made its excellent quarterly results public, strong buying started in the company’s shares on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Airtel shares jumped 3 to 5 percent during intra-day trade, adding billions of rupees to the company’s total market capitalization. The big brokerage houses of the market have increased the target price of Airtel’s stock by keeping its rating at ‘Buy’. Investors believe that Airtel’s strong balance sheet, steps towards becoming debt free and stable revenue from the African market will take the company to greater heights in the future.
For some time, Reliance Jio’s dominance in India’s telecom arena was considered undisputed, but under the leadership of Sunil Bharti Mittal, Airtel made a major change in its strategy. Instead of just increasing the user base, the company focused on adding high-value i.e. premium customers (Postpaid and Home Broadband Users). Apart from this, rapid rollout of 5G infrastructure across the country and growth in enterprise business (B2B Services) helped Airtel earn more profits than Jio. Although Jio still remains the country’s largest company in terms of total number of mobile subscribers, Airtel has won this time in terms of financial efficiency and margins. It is clear from this new war in the telecom sector that in the coming time, the competition between the two companies regarding 5G services and digital ecosystem is going to become more intense.