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7/29/2019 Bharti Airtel, 4th February, 2013
1/14
Please refer to important disclosures at the end of this report 1
EBITDA 6,184 6,351 (2.6) 5,958 3.8
EBITDA margin (%) 30.5 31.3 (78)bp 32.2 (172)bp
Source: Company, Angel Research
For 3QFY2013, Bharti Airtel (Bharti)s revenue as well as operating margins came
in-line with our estimates, however its bottom-line disappointed because of higher
interest charges, forex loss and higher tax. The company is now hopeful regarding
its domestic operations as mobile operators have increased tariffs and cut freebies
after a bruising three-year price war. Africa operations are expected to continueto weigh upon the companys performance. The companys board has elevated
its international operations head Manoj Kohli to the post of managing director.
For 3QFY2013, Bhartis consolidated revenue stood at
`20,254cr, almost flat qoq. Earlier in 2QFY2013, Bharti had ~`600cr of gain due
to a favorable ruling by TDSAT. So adjusting to that, revenues would have grown
by 3% qoq, largely in line with expectations. The consolidated EBITDA margin of
Bharti declined by 78bp qoq to 30.5%. PAT came in at `284cr, down 61% qoq, hit
by higher interest costs, forex fluctuations (`216cr forex loss) and higher tax
expense with tax rate coming in at ~70%. The tax rate increased as one deferred
tax asset in Africa had to be de-recognized.
: On the domestic business front, despite the festival season,
telecom operators did not resort to discounts and promotions to drive subscriber
additions. Recently, telecom operators have reduced discounts and promotional
vouchers, which would lead to improvement in realized tariffs and in turn average
revenue per minute (ARPM). The company has been consistently adding above
2.0mn subscribers plus per quarter in its Africa business. Traffic growth during the
quarter was driven by implementing various minutes growth schemes across the
continent. Going ahead elevated costs and pricing pressure in Africa might weigh
upon Bhartis performance. While operationally 3QFY2013 performance was in
line on the revenue and operating front, regulatory issues persist. Apart from this,
higher debt, interest costs and forex risks pose a risk to earnings. We expect Bhartito post revenue CAGR of 10.4% over FY2012-14E.
Key financials (Consolidated, IFRS)
% chg 13.2 42.1 20.2 12.7 8.2
% chg 5.7 (33.7) (29.4) (43.0) 62.6
EBITDA margin (%) 40.3 33.7 33.2 30.5 30.5
P/E (x) 13.8 20.8 29.5 51.7 31.8
P/BV (x) 3.0 2.6 2.5 2.4 2.2RoE (%) 21.6 12.4 8.4 4.6 7.0
RoCE (%) 17.6 8.2 8.1 6.9 7.5
EV/Sales (x) 3.1 3.1 2.7 2.4 2.2
EV/EBITDA (x) 7.6 9.3 8.0 7.9 7.1Source: Company, Angel Research
CMP `331
Target Price -
Investment Period -
Stock Info
Sector
Net debt (`cr) 642,825
Bloomberg Code
Shareholding Pattern (%)
Promoters 68.5
MF / Banks / Indian Fls 8.2
FII / NRIs / OCBs 17.3Indian Public / Others 6.0
Abs. (%) 3m 1yr 3yr
Sensex 6.6 14.3 20.9
Bharti Airtel 12.5 (8.5) 6.4
5
19,781
5,999
BRTI.BO
BHARTI.IN
125,511
0.9
401/238
488,612
Telecom
Avg. Daily Volume
Market Cap (`cr)
Beta
52 Week High / Low
Face Value (`)
BSE Sensex
Nifty
Reuters Code
022-39357800 Ext: 6819
Performance highlights
3QFY2013 Result Update | Telecom
February 1, 2013
7/29/2019 Bharti Airtel, 4th February, 2013
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Bharti Airtel | 3QFY2013 Result Update
February 1, 2013 2
Exhibit 1:3QFY2013 Financial performance (Standalone, Indian GAAP)
Access charges 1,949 1,990 (2.1) 1,499 30.0 5,589 4,272 30.8License fees and spectrum charges 1,204 1,221 (1.4) 1,192 1.0 3,647 3,472 5.0
Employee costs 386 356 8.2 306 25.9 1,106 1,055 4.8
Other expenses 4,585 4,482 2.3 4,153 10.4 13,514 11,914 13.4
Total operating expenses 8,124 8,050 0.9 7,150 13.6 23,856 20,712 15.2
as % to sales 71.9 69.9 68.1 70.6 67.1
Depreciation and amortization 1,738 1,680 3.5 1,529 13.7 5,070 4,381 15.7
EBIT 1,438 1,794 (19.8) 1,823 (21.1) 4,877 5,754 (15.2)
Interest cost 490 336 45.8 396 23.6 1,372 1,086 26.3
Other income 45 796 257 1,407 438
PBT 993 2,253 (55.9) 1,683 (41.0) 4,912 5,106 (3.8)
Tax 243 462 (47.5) 267 (9.1) 900 950 (5.3)
EBITDA margin 28.1 30.1 (204)bp 31.9 (381)bp 29.4 32.9 (343)bp
EBIT margin 12.7 15.6 (284)bp 17.4 (463)bp 14.4 18.7 (423)bp
PAT margin 6.6 15.5 (891)bp 13.5 (684)bp 11.9 13.5 (160)bp
Source: Company, Angel Research
For 3QFY2013, Bharti reported a flat revenue growth with
revenues coming in at `20,254cr. During 2QFY2013, Bharti had ~`600cr of gain
due to a favorable ruling by TDSAT. So adjusting to that, revenues would havegrown by 3% qoq, largely in line with expectations.
Exhibit 2:Revenue break-up (Business segment wise)
Mobile services India & South Asia 10,936 11,117 (1.6) 10,176 7.5
Mobile services Africa 5,972 5,854 2.0 5,358 11.5
Telemedia services 957 953 0.4 913 4.8
Enterprise services 1,422 1,393 2.0 1,188 19.7
Passive infrastructure services 2,635 2,557 3.1 2,439 8.0
Others 520 498 4.5 399 30.3
Eliminations 2,189 2,090 4.8 1,997 9.6
Source: Company, Angel Research
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Bharti Airtel | 3QFY2013 Result Update
February 1, 2013 3
The revenue of the mobile business in
India and South Asia declined by 1.6% qoq to `10,936cr, because of high base
effect of one-time gain during 2QFY2013. The Indian mobility business reported
decent KPIs with 4.4% qoq growth in minutes of use (MOU) to 435min. Mobiletraffic grew by 3.0% qoq to 240bn min. The ARPM remained flat qoq at
`0.43/min. Consequently, the average revenue per user (ARPU) grew by 4.3% qoq
to `185/month. Churn level came back to comfortable position after seven
quarters and stood at 5.9%. The subscriber base fell to 181.9mn from 185.9mn as
the company has been pushing out inactive subscribers from its system, keeping in
notice the regulatory requirements. VAS as a percentage of mobility revenues
improved to 17.3% from 16.8% during 2QFY2013. The regulatory changes in
value added services (VAS) segment did not have any significant impact in
3QFY2013 as Bharti has been taking cuts in VAS revenues since the last couple of
quarters. The growth in non-voice revenues was led by growth in data revenue,
which grew from 5.2% to 5.7% of total mobile revenues. Data ARPU increased to`47 from `43 in 2QFY2013. Data customer base of the company increased by
2.2% qoq to 41.5mn. Data usage per subscriber increased to 161MB from 133MB
in 2QFY2013. The companys data revenue has been growing at a CQGR of
12.3% over the last three quarters, which is an encouraging sign.
Exhibit 3:Trend in MOU (qoq)
Source: Company, Angel Research
Exhibit 4:Trend in VAS share (qoq)
Source: Company, Angel Research
Exhibit 5:Trend in ARPM (qoq)
Source: Company, Angel Research
Exhibit 6:Trend in ARPU (qoq)
Source: Company, Angel Research
445
423
419
431
433
417
435
(0.8)
(4.9)
(1.0)
2.8
0.4
(3.8)
4.4
(6)
(4)
(2)
0
2
4
6
400
410
420
430
440
450
1QFY12 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13
(%)
(min)
MoU qoq growth
15.6
16.115.8
16.216.3
16.8
17.3
14
15
16
17
18
1QFY12 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13
(%)
VAS share
0.4
3
0.4
3
0.4
5
0.4
4
0.4
3
0.4
3
0.4
3
(0.8)
0.9
3.2
(1.7)
(2.6)
(0.2)
(0.1)
(3)
(2)
(1)
0
1
2
3
4
0.30
0.35
0.40
0.45
0.50
1QFY12 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13
(%)
(`/min)
ARPM qoq growth
190
183
187
189
185
177
185
(1.8)
(3.8)
2.21.1
(2.2)
(3.9)
4.3
(8)
(4)
0
4
8
150
160
170
180
190
200
1QFY12
2QFY12
3QFY12
4QFY12
1QFY13
2QFY13
3QFY13
(%)
(`/month)
ARPU qoq growth
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Bharti Airtel | 3QFY2013 Result Update
February 1, 2013 4
: The revenue of the telemedia business increased by 0.4% qoq
to `957cr, led by an improvement in APRU to `973/month from `971/month in
2QFY2013. Bhartis subscriber base in this business remained almost stable qoq.
EBITDA margin on this business grew by 115bp qoq to 43.5%.
Exhibit 7:Telemedia Subscriber base and ARPU trend
Source: Company, Angel Research
: The revenues in the passive infrastructure services
segment grew by 3.1% to `2,635cr. Bharti Infratel has a portfolio of ~34,670
towers with a tenancy ratio of 1.82x and Indus Towers has a portfolio of
~111,240 towers (110,561 in 2QFY2013) with a tenancy ratio of 1.99x. EBITDA
grew by 1.9% qoq to `976cr with EBITDA margin declining by 41bp qoq to 37.0%.
Exhibit 8:Trend in Passive Infrastructure Business (qoq)
Source: Company, Angel Research
India & South Asia capex during the quarter declined to `1,515cr vs `2,896cr in
2QFY2301. The company rolled out 2182 3G sites as compared to 2321 sites
rolled out in the last quarter.
3,3
22
3,3
28
3,3
17
3,2
70
3,2
72
3,2
75
3,2
78
952 955
916 933
962
971
973
800
850
900
950
1000
2,500
2,700
2,900
3,100
3,300
3,500
1QFY12 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13
(`)
(in000's)
Telemedia subs cribers (in 000's) ARPU
1.77 1.791.81 1.82 1.82 1.81 1.82
1.87 1.891.91 1.94
1.96 1.98 1.99
1.0
1.2
1.4
1.6
1.8
2.0
2.2
0
300
600
900
1,200
1QFY12 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13
Tenancy(x)
N
o.oftowers(in00's)
Bharti Infratel (BTIL) Indus BTIL tenancy Indus tenancy
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Bharti Airtel | 3QFY2013 Result Update
February 1, 2013 5
Exhibit 9:3QFY2013 Financial performance (Consolidated, IFRS)
Operating expenditure 14,070 13,932 1.0 12,518 12.4 41,515 35,256 17.8
Depreciation & amortization 3,901 3,856 1.2 3,585 8.8 11,514 9,900 16.3
EBIT 2,283 2,495 (8.5) 2,374 (3.8) 6,870 7,580 (9.4)
Interest charges 1,332 1,022 30.3 788 69.1 3,175 2,761 15.0
Non operating expenditure - - - - - - - -
Other income - - - - -
PBT 951 1,473 (35.4) 1,586 (40.0) 3,695 4,818 (23.3)
Income tax 668 771 (13.5) 559 19.5 1,927 1,563 23.3
PAT 284 701 (59.5) 1,028 (72.4) 1,768 3,256 (45.7)
Share in earnings of associate - - (6) 8 -
Minority Interest 0 (20) (101.5) 11 (97.2) (20) (3) 500.0
EPS (`) 0.7 1.9 (60.7) 2.7 (71.9) 4.7 8.6 (45.3)
EBITDA margin (%) 30.5 31.3 (78)bp 32.2 (172)bp 30.7 33.1 (245)bp
EBIT margin (%) 11.3 12.3 (103)bp 12.8 (157)bp 11.5 14.4 (290)bp
PAT margin (%) 1.4 3.6 (215)bp 5.5 (407)bp 3.0 6.2 (321)bp
Source: Company, Angel Research
Exhibit 10:Actual vs Angel estimates
Net sales 20,254 20,415 (0.8)
EBITDA margin (%) 30.5 31.5 (96)bp
PAT 284 910 (68.8)
Source: Company, Angel Research
For 3QFY2013, Zain Africas revenue stood at `5,972cr,
up 2.0% qoq. In USD terms, the revenue increased by 3.3% qoq to US$1,133mn,
as MOU increased by 4.5% qoq to 144min. The ARPU, however, declined by 2.4%
qoq to US$6.2/month. ARPM declined substantially by 6.7% qoq to 4.3US/min,
as traffic growth was driven on the back of discounted on-net minutes as well as
tariff cut in Nigeria. EBITDA during the quarter remained flat qoq at `1,581cr,primarily due to higher network opex and license fee. EBITDA margin stood at
26.5%, down 70bp qoq. Capex during the quarter stood at `867cr vs `1,159cr in
2QFY2013.
Exhibit 11:Operating metrics for Zain Africa
ARPM (US/min) 4.3 4.6 (6.7) 5.7 (24.3)
MOU (min) 144 138 4.5 125 15.5
ARPU (US$/month) 6.2 6.4 (2.4) 7.1 (12.5)
Subscriber base (mn) 61.7 58.7 5.1 50.9 21.1
Source: Company, Angel Research
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Bharti Airtel | 3QFY2013 Result Update
February 1, 2013 6
Margins decline
During the quarter, Bhartis consolidated EBITDA margin declined by 78bp qoq to
30.5% qoq. This was because of higher network costs. Segment-wise, India &
South Asia, and Africa reported 73bp and 70bp margin decline to 30.2% and
26.5%, respectively. The EBITDA margin of other business segments such as
telemedia services and enterprise services grew by 115bp and 75bp qoq to 43.5%
and 16.2%, respectively. While operating performance of India mobile business
was satisfactory, Africa business surprised negatively due to pricing pressure seen
by the company.
Exhibit 12:Segment-wise EBITDA margin trend (qoq)
Source: Company, Angel Research
Exhibit 13:Opex break-up (qoq)
Source: Company, Angel Research
33.7 33.8 34.030.3 31.0 30.3
44.2
38.8
41.040.3
42.443.5
21.5
16.9
14.6
16.5
15.4
16.2
37.5
37.3 38.636.5 37.5
37.0
10
20
30
40
50
2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13
(%)
Mobile services-India & South Asia Telemedia services
Enterprise services Passive infrastructure services
13.9 14.2 13.9 14.3 15.1 15.0
22.7 22.8 22.624.0 23.3 24.9
8.4 8.4 8.6 8.4 8.18.2
5.2 4.7 4.7 4.8 4.95.0
16.2 17.7 16.9 18.3 17.316.2
33.7 32.2 33.3 30.2 31.3 30.5
0
20
40
60
80
100
2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13
(%)
Access charges Network costs License fee Employee cost S,G&A cost EBITDA margin
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Bharti Airtel | 3QFY2013 Result Update
February 1, 2013 7
Outlook and valuation
The company's board elevated Bhartis international operations head Manoj Kohli
to the post of managing director and appointed Gopal Vittal, the CEO-designate
for its Indian operations, as joint managing director. Vittal will officially assume
charge of the domestic business after Sanjay Kapoor steps down at the end of this
month.
On the domestic business front, despite the festival season, telecom operators did
not resort to various discounts and promotions to drive subscriber additions.
Recently, telecom operators have reduced discounts and promotional vouchers,
which would lead to improvement in realized tariffs and in turn ARPM. Going
ahead, we are positive on the Indian operations and expect tariff to inch up.
Reduction in channel payouts and pricing improvement would provide margin
cushion going forward. However, many regulatory issues still lack clarity. Bhartis
data revenue has been growing at a CQGR of 12.3% over the last three quarters
which is an encouraging sign. We believe sustained RPM improvement would be
imperative for a turnaround in the India mobile business as mobile traffic growth is
already subdued and data revenue is yet to contribute significantly.
Bharti is on its way to turnaround its Africa business by bringing down its network
operating expenditure by outsourcing various network-related developments but is
taking longer than expected to bring the Africa business back on track.
The company has been consistently adding above 2.0mn subscribers plus per
quarter in its Africa business. Traffic growth during the quarter was driven by
implementing various minutes growth schemes across the continent. Going ahead
elevated costs and pricing pressure in Africa might weigh upon Bhartisperformance.
Overall industry growth in Africa has come down to 8-9% vs 14-15% when the
Management took over Zain in 2010, which led to deviation in the Managements
initial guidance of US$5bn revenue and US$2bn EBITDA. The company has been
consistently gaining revenue market share in Africa. African markets have been
more receptive in terms of data consumption. The leading telecom operator in
Nigeria has reduced the tariffs by 30% in the last couple of quarters, so Bharti had
to further cut its tariffs. Its impact would be visible in the coming quarters also. The
Management indicated that investments in Africa would continue because of a)
brand expansion, b) incorporation of tower company which would requireadditional investment and c) 3G expansion (currently launched in 11 out of 17
countries where Bharti operates). The Management also indicated that in FY2014
focus in Africa would be more on margins rather than revenue market share.
While operationally 3QFY2013 performance was in line on the revenue and
operating front, regulatory issues persist. Apart from this, higher debt, interest costs
and forex risks pose a risk to the earnings. We expect Bharti to post revenue CAGR
of 10.4% over FY2012-14E. In addition, we expect VAS share to inch up due to
surging demand for non-SMS data services; this would further comfort the
companys ARPM. Key downside risks such as 1) uncertainty in regulatory outcome;
2) pricing scenario in Africa operations; and 3) delay in return on investmentsmade in 3G launches, still loom. Emerging regulatory clarity in the sector would
remain positive for the sector in the medium to long term. Bharti being the leader
in the industry may remain the key beneficiary of the same. The stock is currently
7/29/2019 Bharti Airtel, 4th February, 2013
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Bharti Airtel | 3QFY2013 Result Update
February 1, 2013 8
trading at 7.1x FY2014E EV/EBITDA and 31.8x FY2014E EPS.
Exhibit 14:SOTP valuation
Domestic business (excl. Tower) 15x P/E 279
Zain - Africa operations 7x EV/EBITDA 2
Bharti Infratel - Tower business 20% discount to CMP 65
Source: Company, Angel Research
Exhibit 15:One-year forward EV/EBITDA (x)
Source: Company, Angel Research
Exhibit 16:Change in estimates
Net revenue 80,353 80,521 0.2 86,654 87,160 0.6
EBITDA 24,794 24,589 (0.8) 27,118 26,576 (2.0)
PBT 5,367 4,784 (10.9) 6,792 6,169 (9.2)
Tax 2,138 2,377 11.2 2,309 2,221 (3.8)
PAT 3,249 2,428 (25.3) 4,483 3,948 (11.9)
Source: Company, Angel Research
0
75,000
150,000
225,000
300,000
375,000
450,000
525,000
A
pr-07
A
ug-0
7
D
ec-0
7
A
pr-08
A
ug-0
8
D
ec-0
8
A
pr-09
A
ug-0
9
D
ec-0
9
A
pr-10
A
ug-1
0
D
ec-1
0
A
pr-11
A
ug-1
1
D
ec-1
1
A
pr-12
A
ug-1
2
D
ec-1
2
EV(`cr)
EV 17x 14x 11x 8x 5x
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Bharti Airtel | 3QFY2013 Result Update
February 1, 2013 9
Exhibit 17:Recommendation summary
Idea Cellular Neutral 112 112 - 2.4 28.7 12.7 10.3 8.4
RCom Neutral 81 81 - 0.4 20.3 (14.8) 4.2 2.2
Source: Company, Angel Research
Company Background
Bharti Airtel is India's leading telecommunication service provider, offering mobile
services in all the 22 circles of the country and having a subscriber base of 181mn.
In 2010, Bharti acquired Zain's telecom business in 15 countries of Africa and is
currently present in 17 African countries (62mn subscribers). The company also
has a presence in Sri Lanka and Bangladesh. Bharti also holds a 42% stake inIndus Towers, a JV between Bharti, Vodafone and Idea Cellular.
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Bharti Airtel | 3QFY2013 Result Update
February 1, 2013 10
Profit and Loss account (Consolidated, IFRS)
Roaming and access charges 4,481 7,499 9,869 12,013 13,149
% of net sales 10.7 12.6 13.8 14.9 15.1
Network operating exp. 8,912 12,993 16,180 19,542 21,514
% of net sales 21.3 21.8 22.6 24.3 24.7
License fee 4,088 5,166 6,112 6,617 6,979
% of net sales 9.8 8.7 8.6 8.2 8.0
Other expenses 7,513 13,774 15,602 17,760 18,942
Total expenditure 24,993 39,432 47,762 55,932 60,584
% of net sales 59.7 66.3 66.8 69.5 69.5
% of net sales 40.3 33.7 33.2 30.5 30.5
Dep. and amortization 6,284 10,206 13,368 15,521 16,777
Non operating expenses (18) 111 - - -
Interest charges 18 2,182 3,819 4,284 3,629
Other income, net 70 129 - - -
Profit before tax 10,640 7,666 6,526 4,784 6,169
Provision for tax 1,345 1,778 2,260 2,377 2,221
% of PBT 12.6 23.2 34.6 49.7 36.0
Share in earnings of associate - - (6) - -
Minority interest 187 (148) (1) (20) -
EPS (`) 24.0 15.9 11.2 6.4 10.4
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Bharti Airtel | 3QFY2013 Result Update
February 1, 2013 11
Balance sheet (Consolidated, IFRS)
Share capital 1,899 1,899 1,899 1,899 1,899Reserves and surplus 40,295 46,868 48,713 50,696 54,200
Minority interest 2,529 2,856 2,770 2,770 2,770
Secured loans 8,147 53,234 49,715 54,177 51,360
Unsecured loans 2,042 8,437 19,308 20,734 19,251
Other liabilities 5,300 4,665 5,078 1,000 1,000
Gross block 69,725 96,810 112,529 122,529 131,529
Acc. depreciation 21,462 31,668 45,036 60,557 77,334
Net block 48,263 65,142 67,493 62,286 54,643
Goodwill 5,989 63,732 66,089 66,089 66,089
Oth. non-current assets 1,825 1,918 3,543 6,458 10,307
Investments 5,236 622 1,813 3,013 4,013
Inventories 48 214 131 200 200
Sundry debtors 3,571 5,493 6,374 7,942 9,858
Cash and equivalents 2,532 958 2,030 3,191 4,078
Other current asst 2,381 3,921 4,461 5,961 7,961
Less: - current liab. 10,841 28,430 29,450 33,713 36,516
Less:- provisions 41 118 129 153 153
Net deferred tax 1,249 4,506 5,128 10,000 10,000
Miscellaneous exp. - - - - -
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Bharti Airtel | 3QFY2013 Result Update
February 1, 2013 12
Cash flow statement (Consolidated, IFRS)
Pretax profit from operations 10,571 7,536 6,526 4,784 6,169
Depreciation 6,284 10,206 13,368 15,521 16,777Expenses (deferred)/written off - - - - -
Pre tax cash from operations 16,854 17,742 19,894 20,305 22,946
Other income/prior period ad 70 129 - - -
Net cash from operations 16,924 17,872 19,894 20,305 22,946
Tax (1,345) (1,778) (2,260) (2,377) (2,221)
(Inc)/Dec in
Current assets 3,501 (3,628) (1,337) (3,138) (3,916)
Current liabilities (4,352) 17,666 1,032 4,286 2,804
Net trade working capital (851) 14,038 (305) 1,149 (1,112)
(Inc)/Dec in fixed assets (13,633) (27,085) (15,719) (10,314) (9,133)
(Inc)/Dec in intangibles (1,953) (57,743) (2,357) - -
(Inc)/Dec in investments (1,431) 4,614 (1,191) (1,200) (1,000)
(Inc)/Dec in net dfr. tax asset (1,249) (3,257) (622) (4,872) -
(Inc)/Dec in minority interest 1,458 328 (87) - -
(Inc)/Dec in oth. non-curr. ast. (801) (94) (1,631) (2,895) (3,849)
Inc/(Dec) in debt (1,690) 51,481 7,352 5,888 (4,300)
Inc/(Dec) in equity/premium 2,944 1,130 (1,970) (0) -
Others 3,484 (635) 413 (4,078) -
Dividends 444 444 444 444 444
Cash at start of the year 1,115 2,532 958 2,030 3,191
Cash at end of the year 2,532 958 2,030 3,191 4,078
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Bharti Airtel | 3QFY2013 Result Update
February 1, 2013 13
Key ratios
P/E (on FDEPS) 11.3 17.1 24.2 29.8 21.1P/CEPS 6.7 6.3 5.8 5.5 4.8
P/BVPS 2.4 2.1 2.0 1.9 1.8
Dividend yield 0.4 0.4 0.4 0.4 0.4
EV/Sales 2.5 2.7 2.4 2.0 1.7
EV/EBITDA 6.3 8.1 7.1 6.4 5.3
EV/Total assets 1.7 1.4 1.3 1.3 1.3
EPS 24.0 15.9 11.2 9.1 12.9
Cash EPS 40.6 42.8 46.4 49.6 56.0
Dividend 1.0 1.0 1.0 1.0 1.0
Book value 111.2 128.5 133.3 141.2 152.9
Tax retention ratio (PAT/PBT) 0.9 0.8 0.7 0.6 0.7
Cost of debt (PBT/EBIT) 1.0 0.8 0.6 0.6 0.7
EBIT margin (EBIT/Sales) 0.3 0.2 0.1 0.1 0.1
Asset turnover ratio (Sales/Assets) 0.7 0.5 0.6 0.7 0.8
Leverage ratio (Assets/Equity) 1.4 2.4 2.5 2.2 2.0
Operating ROE 21.6 12.4 8.4 6.4 8.4
RoCE (pre-tax) 17.6 8.2 8.1 8.1 9.9
Angel RoIC 22.8 18.5 18.0 19.0 25.9
RoE 21.6 12.4 8.4 6.4 8.4
Asset turnover (fixed assets) 0.8 0.7 0.6 0.6 0.7
Receivables days 28 34 33 34 34
Payable days 158 263 225 240 240
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Bharti Airtel | 3QFY2013 Result Update
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Disclosure of Interest Statement Bharti Airtel
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