This telecom company plans to source 23,000 MWh of renewable energy by Q4FY24 for six Nxtra data centres!

Airtel, headquartered in India, is a global communications solutions provider with over 500 million customers across 17 countries in South Asia and Africa. It ranks among the top three mobile operators worldwide, covering more than two billion people. In India, Airtel is the largest integrated communications provider and the second-largest mobile operator in Africa. Airtel’s retail offerings include high-speed 4G/5G mobile broadband, Airtel Xstream Fiber with speeds up to 1 Gbps, entertainment streaming services, digital payments, and financial services.

Bharti Airtel has announced plans to acquire 23,000 MWh of renewable energy for its data centre subsidiary, Nxtra, by Q4FY24. This move aligns with Airtel’s commitment to reducing its carbon footprint. To fulfil this commitment, Airtel will invest in renewable energy projects established by Continuum Green India Pvt Ltd and Vibrant Energy Holdings Pte Ltd. These projects will power six of Nxtra’s Edge data centre facilities.

Airtel will utilize the open access route to acquire stakes in Continuum Green’s project company, which will supply green power to Nxtra’s Edge data centres in Madhya Pradesh. Additionally, Airtel has entered into a similar agreement with Vibrant Energy’s project company to source solar power for its Edge data centre in Vijaywada. This strategic move will increase Nxtra’s contracted renewable energy capacity to over 274,000 MWh, solidifying its position as a leader in the development of environmentally friendly data centres.

The company has delivered returns of 16.47% over the past year and returns of 67.8% over the past 3 years. Furthermore, the company has been able to grow its sales by 11% (CAGR) for the past 5 years and net profit has grown by 48% (CAGR) for the same period. Additionally, the company has a ROCE of 13.5% and a ROE of 12%.

On Monday, shares of the company plunged by 0.33% and traded at Rs 863.

Investors should keep a close eye on this trending stock.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.

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