Bharti Airtel Ltd. is focusing on directing its capital expenditure to expand its 5G network coverage by rolling out additional 5G radios to address the rising data demand, Managing Director Gopal Vittal said on Friday.
"Our 5G coverage expansion continues as planned. We ended the quarter with a 5G base of 120 million. 5G shipments continue to grow, now contributing to over 80% of overall smartphone shipments," Vittal said during the post-earnings management call. "We continue to get our fair share from continuing 5G handset adoption."
Vittal said Airtel would not be putting any new investments for expanding its 4G coverage and, instead, would be focusing on increasing its 5G capacity.
The managing director said Airtel saw a reduction in capex in the current fiscal, adding that there would be a moderation in capex going into the next fiscal as well.
One of the biggest components for capex for Airtel is the transport network as this will provide capacities for other verticals, according to Vittal. "The core network tends to be a small component of capex. We are keen to spend more on the home business front."
Airtel's consolidated net profit surged over fourfold sequentially in the third quarter of the current financial year, beating analysts' estimates.
The telecom giant reported a net profit of Rs 14,781.2 crore during the October–December period, compared to Rs 3,593.2 crore in the previous quarter, according to an exchange filing on Thursday. Analysts tracked by Bloomberg had a consensus estimate of Rs 5,023 crore.
During the quarter, Airtel rolled out about 5,200 towers and about 16,300 mobile broadband stations to expand its network footprint and enhance customer experience across the country.
"Our balance sheet remains solid, supported by robust cash generation, prudent capital allocation, and continued deleveraging," Vittal said in a statement. "We believe the industry needs further tariff repair to ensure sustained investment and long-term value creation."
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