Bharti Airtel: A Blue-Chip Stock Soaring in FY2023-24 with Strong Growth and Proactive Risk Management

Bharti Airtel: A Blue-Chip Stock Soaring in FY2023-24 with Strong Growth and Proactive Risk Management
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Bharti Airtel FY2023-24: Positive Financial Growth and Operational Strength

Total Income Growth

In Jun 23, Bharti Airtel’s total income reached ₹37,788.30, reflecting a positive growth rate of ↑ 4.12%.

In Mar 23, the company had a total income of ₹36,293.90, demonstrating a commendable growth rate of 10.64%.

Effective Cost Management

Total expenses in Jun 23 increased to ₹30,911.60, with a robust growth rate of ↑ 15.70%, indicative of strong operational investment.

In Mar 23, total expenses amounted to ₹26,717.80, growing by +2.20%, underlining the company’s effective cost management.

Operational Strength

Earnings Before Interest and Taxes (EBIT) for Jun 23 were ₹6,876.70, showcasing a significant growth rate of 28.19%.

In Mar 23, EBIT stood at ₹9,576.10, with a growth rate of 19.53%, reaffirming Bharti Airtel’s operational strength.

Robust Profitability

Profit After Tax (PAT) in Jun 23 was ₹1,612.50, with a growth rate of 46.35%, indicating robust profitability.

In Mar 23, PAT reached ₹3,005.60, demonstrating an impressive growth rate of ↑ 89.25%, emphasizing Bharti Airtel’s financial resilience.

Operational Efficiency

EBIT Margin % improved from 18.20% in Jun 23 to 26.38% in Mar 23, reflecting enhanced operational efficiency.

Net Profit Margin % also showed a positive shift, with 4.27% in Jun 23 and 8.28% in Mar 23, highlighting improved profitability.

Shareholder Value Creation

Basic Earnings Per Share (EPS) increased from ₹2.84 in Jun 23 to ₹5.30 in Mar 23, indicating positive growth and value creation for shareholders.

Generous Dividends

In 2023, Bharti Airtel announced a generous dividend of 80%, underlining the company’s commitment to rewarding its shareholders. This is a positive sign of a shareholder-friendly approach.

Market Leadership

With a Market Capitalization of ₹5,69,996 Cr, Bharti Airtel solidifies its position as a market leader, a testament to its success and influence.

Bharti Airtel : Proactive Risk Management

Board Governance Level

Comprehensive Oversight: The Risk Management Framework receives frequent evaluation by the Risk Management Committee and annual scrutiny by the Board of Directors. This proactive approach ensures a well-informed and vigilant stance towards risk management.

Risk Mitigation Priority: The committee identifies crucial risks and approves action plans for priority risk mitigation, underscoring the company’s proactive stance in addressing challenges.

Management Level

Leadership Responsibility: CEOs of Management Boards take the lead in managing risks within their respective areas. This ensures a positive and responsive approach to potential challenges in the Inde & South Asia, and Africa regions.

Strategic Risk Management: The company maintains a strategic approach to risk management, with comprehensive risk registers that capture identified risks at the national and functional levels, enabling a well-informed and proactive stance.

Operating Level

Ground-Level Vigilance: Executive Committees at the circle and Operating Company levels take a proactive approach to managing risks on the ground, ensuring a positive and vigilant stance.

Collaborative Approach: Circle CEOs or Country MDs proactively coordinate various functions and partners to manage risks effectively, fostering a collaborative and solutions-oriented approach.

Comprehensive Risk Management:Operating level risk assessments are thoroughly conducted, with Internal Audit Plans designed to ensure comprehensive coverage of critical risks, further emphasizing a proactive risk management culture.

Positive Risk Management Process

Vigilant Scanning

Bharti Airtel maintains a proactive approach to risk management by meticulously scanning the entire business environment, both internal and external, to identify potential risks, ensuring they are identified early and acted upon positively.

Strategic Risk Classification

Risks are classified based on probability, impact, and nature, allowing for a proactive and strategic response to challenges.

Objective Measurement

The company applies a data-driven and objective measurement methodology, ensuring a positive and structured approach to risk assessment.

Clear Accountability

A proactive approach is taken to assign clear accountability for implementing mitigating action plans, fostering a sense of responsibility and positive action.

Proactive Mitigation

Detailed action plans to manage key risks are proactively agreed upon, ensuring a responsive and positive approach to risk mitigation.

Transparent Reporting

The company maintains a transparent and positive reporting process, ensuring that specific issues are reported to the Audit Committee/Risk Management Committee, underlining a commitment to transparency and positive governance.

Bharti Airtel Forward-Looking Vision for 2024 : Growth, Innovation & Global Expansion

In the coming year, Bharti Airtel is committed to sustaining its impressive growth through innovation, investing in cutting-edge technology, expanding in South Asia and Africa, and prioritizing proactive risk management. The company remains dedicated to delivering value to shareholders with generous dividends and focuses on sustainability and corporate responsibility to reduce its environmental footprint and contribute positively to communities. Bharti Airtel is poised for a bright future, solidifying its leadership in the telecom sector.

FAQs About Bharti Airtel

What is the current share/stock price of Bharti Airtel ?

The current share/stock price of Bharti Airtel is ₹955.35 on NSE and ₹955.60 on BSE.

How did Bharti Airtel manage risk effectively in 2023?

Bharti Airtel adopted a proactive approach to risk management in 2023. This involved comprehensive oversight at the board governance level, leadership responsibility at the management level, and vigilant risk assessments at the operating level. The company maintained a vigilant scanning of the business environment, applied a strategic risk classification, measured risks objectively, and established clear accountability for risk mitigation.

How is Bharti Airtel’s dividend policy in 2023?

Bharti Airtel announced a generous dividend of 80% in 2023, emphasizing the company’s commitment to rewarding its shareholders. This is a positive indication of a shareholder-friendly approach.

What is Bharti Airtel’s Market Capitalization in 2023?

Bharti Airtel’s Market Capitalization in 2023 is ₹5,69,996 Cr, solidifying its position as a market leader and highlighting its substantial success and influence in the telecommunications sector.

What contributed to Bharti Airtel’s positive financial growth in 2023?

Bharti Airtel’s positive financial growth in 2023 can be attributed to several key factors, including a steady increase in total income, effective cost management, operational strength, robust profitability, and improved operational efficiency. These elements collectively contributed to the company’s impressive performance during this period.

Disclaimer

The information provided in this blog is for general informational purposes only and should not be considered as professional financial or investment advice. Always conduct thorough research and seek advice from a qualified financial advisor before making any investment decisions. The blog author and publisher are not responsible for any actions taken based on the information provided in this blog. Any reliance on the content is at your own risk. Remember that the financial markets can be volatile, and past performance is not indicative of ture results. The company mentioned in the blog may have undergone changes or developments that are not reflected here. Please verify the information with credible sources before making any financial decisions.

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