CLSA predicts Bharti Airtel’s PAT to surge 9-fold by FY21

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CLSA, a brokerage and investment firm predicted the telecom giant, Bharti Airtel’s PAT (Profit After Tax) to surge exponentially in the coming years. They expect the PAT to surge 9-fold by 2020 – 2021. They are going to achieve a compound annual growth of 16% said the brokerage company.

Airtel’s PAT expected to grow 9-fold by FY21

CLSA also mentioned that the company would grow drastically in spite of the fact that Airtel’s cash flow in the second half of the current fiscal year will face pressure. Conversely, the investment firm predicts Idea Cellular to face pressure with its cash flow in the coming months.

Airtel has already experienced an exponential rise in data usage after the revolutionary launch of Jio’s 4G data services. Analysts have said that while Airtel had lost out on customers when Jio had provided its 4G data plan for free, the had regained more than 8 million subscribers once Jio started charging its users. CLSA also stated that only 47% of Airtel’s 66 million subscribers were from urban areas, proving that the telecom giant had an immense scope to grow in future.

On the contrary, Idea had reported a loss every quarter since Jio had brought out their free 4G service. This also resulted in the company’s operating income drop by 47% in the second quarter of FY18. Idea also faced a 48% rise in net debt this year that amounted to Rs.54,000 crore.

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