Bharti Infratel Ltd (NSE:BHIN) Q1 2020 Earnings Conference Call - Final Transcript
Jul 25, 2019 • 06:00 am ET
Thank you very much sir. We will now begin the question-and-answer interactive session, for all the participants who are connected to the audio conference service from Airtel. Due to time constraints we would request if you could limit the number of questions with two to enable more participation. Hence management will take only two questions per participant to ensure maximum participation. [Operator Instructions] The first question comes from Mr. Manish Adukia from Goldman Sachs, Mumbai. Mr. Adukia, you may ask your question now.
Yes, hi, good afternoon, and thank you for taking my questions. I had two questions please. My first question is on the rent per customer that seems to have seen another sharp jump in this quarter. I just wanted to clarify, that's just a function of rentals getting reset higher for existing customers because of exit. Or are there any one-off in that, and I'm referring to the number that you've given adjusted for the accounting change?
And my second question is on the gross add, that number seems to have seen another quarter of moderation in the past you've talked about operators needing may be north of 250,000 towers for a pan-India 4G coverage. What would in your view be driving this moderation especially at a time when two of the three operators seem to be long time away from those targets. Thank you.
Manish, this is Bala. On the ARPT, which is the rental revenue which is doing, this is largely coming on account of loading and increments which happen on a quarter basis. And this is a function of growth in tendencies and loading. Rental reset, if you know that, you will see from the net churn there are not much. So it is largely coming from the ongoing business.
On your second question, Manish, we do see new tower build out picking up, that's visible from Infratel Standalone numbers where we're building towers for operators. But yes, not to the levels that we've seen in the past, and also one of the leading operators is still in the process of merger and integration of the network. We haven't seen significant additions coming in from there. We are also looking forward to capital infusion from the leading operators. We are now opening that going forward, this will translate into meaningful rollout for coverage and capacity as we move forward from there.
And if I could just quickly ask one more question. I think on the tower industry per se. How would you describe the competitive dynamic on the tower sites for example some likes of like American Tower Corporation, potentially Jio's towers coming?
So the consolidation, the good news is that ATC become similar in terms of size and scale and use own tower will also be in terms of size and scale, very similar to what we are. And you see our return ratios in terms of what we have done mostly our build out has been organic and at that we are at