Bharti Hexacom , a subsidiary of telecom giant Bharti Airtel, reached a significant milestone as its shareholder lock-in period concluded on Monday, October 13. This development has unlocked 10 crore shares, representing 20% of the company's outstanding equity, now eligible for trading in the open market.

Share Valuation and Market Impact

The unlocked shares carry a substantial market value of ₹17,510.00 crore, based on the closing price from the previous Friday. However, it's important to note that while these shares are now tradable, there's no guarantee they will be immediately sold in the open market.

Bharti Hexacom's Market Performance

Since its initial public offering (IPO) in April 2024, Bharti Hexacom has demonstrated remarkable market performance:

The company's impressive 207.00% gain from its IPO price underscores strong investor confidence and market demand for its shares.

Shareholding Structure

According to the June quarter shareholding patterns, the promoters maintain a significant 70.00% stake in Bharti Hexacom. This substantial ownership suggests a strong commitment from the parent company, Bharti Airtel, to its subsidiary's operations and future prospects.

Conclusion

The end of the lock-in period marks a crucial phase for Bharti Hexacom, potentially impacting its stock liquidity and trading dynamics. Investors and market watchers will likely keep a close eye on any significant movements in the newly unlocked shares, as they could influence the stock's price and overall market sentiment towards the company.

Bharti Hexacom , a subsidiary of Bharti Airtel operating in Rajasthan and North Eastern states, has reported steady financial results for the first quarter, demonstrating improved profitability despite a slight dip in revenue.

Financial Performance

The company posted revenue of ₹2,263.00 crores for Q1. While the top line saw a marginal decline due to reduced roaming revenue, Bharti Hexacom managed to improve its profitability. The company's EBITDAaL (Earnings Before Interest, Tax, Depreciation, and Amortization after Leases) stood at ₹1,079.00 crores, with an impressive margin of 47.70%, marking a sequential improvement of 110 basis points.

Operating free cash flow, calculated as EBITDAaL minus capital expenditure, remained robust at ₹854.00 crores. This strong cash generation underscores the company's operational efficiency and financial health.

Customer Base and ARPU

Bharti Hexacom added 17,000 mobile customers and 54,000 home broadband customers during the quarter. Notably, the company saw a significant addition of 283,000 smartphone customers, indicating a positive shift towards higher-value services.

The Average Revenue Per User (ARPU) for the quarter reached ₹246.00, benefiting from continued mix improvement and an extra day in the quarter. This ARPU growth reflects the company's focus on quality customers and value-added services.

Balance Sheet Strength

The company's balance sheet remains strong, with net debt (excluding leases) at ₹2,806.00 crores. The net debt to EBITDAaL ratio stands at a comfortable 0.70 times, indicating a healthy leverage position.

Strategic Initiatives

Bharti Hexacom continues to leverage partnerships and digital tools to enhance customer experience. The company highlighted two key areas of focus:

1. Digital Tools: The company's anti-spam solution has identified 2.50 billion spam calls since its launch, demonstrating its commitment to customer safety and service quality.

2. Partnerships: Bharti Hexacom is benefiting from Airtel's partnerships, including the recent collaboration with Perplexity AI, offering free AI capabilities to customers for a year at no extra cost.

Home Broadband Momentum

The home broadband business is showing strong momentum, with sustained net additions. The company expects this trend to continue, driven by both fiber and Fixed Wireless Access (FWA) technologies.

Outlook

While the reduction in roaming revenue impacted the top line, Bharti Hexacom's focus on operational efficiency and quality customer acquisition is yielding results in terms of improved profitability. The company's strategic investments in network expansion, digital capabilities, and customer-centric offerings position it well for future growth in its operating regions.

As Bharti Hexacom continues to leverage Airtel's partnerships and technological capabilities, it aims to deliver enhanced value to its customers while maintaining a strong financial position in the competitive telecom landscape.