Date post: | 14-Apr-2018 |
Category: |
Documents |
Upload: | angel-broking |
View: | 222 times |
Download: | 0 times |
of 14
7/30/2019 Bharti Airtel 4Q FY 2013
1/14
Please refer to important disclosures at the end of this report 1
(` cr) 4QFY13 3QFY13 % chg (qoq) 4QFY12 % chg (yoy)Net sales 20,460 20,254 1.0 18,739 9.2EBITDA 6,487 6,184 4.9 6,233 4.1
EBITDA margin (%) 31.7 30.5 117bp 33.3 (156)bp
PAT 509 284 79.3 1,006 (49.4)Source: Company, Angel Research
For 4QFY2013, Bharti Airtel (Bharti)s revenue as well as bottom-line came in
below expectations while operating margin performance surprised positively. 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 continue to weigh upon the companys performance.We maintain our Accumulate rating on the stock.Result highlights: For 4QFY2013, Bhartis consolidated revenue stood at`20,460cr, up 1.0% qoq. KPIs for India mobile business were encouraging with
MOU growing by 4.8% to 455min and 5.1% qoq rise in network traffic. The ARPM
declined slightly by 0.5% to 42.3paise/min. In Africa business, the company posted
a 14.2% qoq decline in MOU to 123min and ARPM declined by 5% qoq. The
consolidated EBITDA margin of the company grew by 117bp qoq to 31.7%, led by
expansion in margins in its domestic business segments. PAT came in at `509cr,
down 50% yoy. Profitability was hit due to higher tax expense with tax rate coming
in at ~61% and higher finance cost (`203cr forex loss).
Outlook and valuation: The company cited that despite the fact that the number ofmajor telecom players has fallen from more than a dozen to just seven, significant
competition still prevails in the domestic market as promotions, and discount packs
for customers have continue. Going ahead, 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. We factor in an ARPM increase of 2.5paise in FY2014E. 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 business back on track. The Management is
confident that the worst is over in Africa and margin improvement and FCF
generation remain the key focus areas in this business as major investments are
behind. The stock is currently trading at 5.4x FY2015E EV/EBITDA and 21.8xFY2015E EPS. We maintain our Accumulate rating on the stock. The SOTP basedvaluation method prices the stock at `338.Key financials (Consolidated, IFRS)Y/E March (` cr) FY2011 FY2012 FY2013E FY2014E FY2015ENet sales 59,467 71,475 80,359 86,592 95,860% chg 42.1 20.2 12.4 7.8 10.7
Net profit 6,035 4,261 2,297 4,140 5,522% chg (33.7) (29.4) (46.1) 80.2 33.4
EBITDA margin (%) 33.7 33.2 30.9 31.4 31.7
EPS (`) 15.9 11.2 6.0 10.9 14.5P/E (x) 20.0 28.3 53.0 29.1 21.8
P/BV (x) 2.5 2.4 2.4 2.2 2.0RoE (%) 12.4 8.4 4.6 7.7 9.3
RoCE (%) 8.2 8.1 7.0 7.7 9.3
EV/Sales (x) 3.0 2.6 2.3 2.0 1.7
EV/EBITDA (x) 9.0 7.8 7.4 6.5 5.4Source: Company, Angel Research
ACCUMULATECMP `318
Target Price `338
Investment Period 12 Months
Stock Info
Sector
Net debt (`cr) 63,840
Bloomberg Code
Shareholding Pattern (%)
Promoters 68.6
MF / Banks / Indian Fls 8.6
FII / NRIs / OCBs 17.2Indian Public / Others 5.6
Abs. (%) 3m 1yr 3yr
Sensex 14.1 (1.0) 12.6
Bharti Airtel 0.8 (3.9) 7.0
5
19,576
5,944
BRTI.BO
BHARTI.IN
120,650
0.8
370/238
483,952
Telecom
Avg. Daily Volume
Market Cap (`cr)
Beta
52 Week High / Low
Face Value (`)
BSE Sensex
Nifty
Reuters Code
Ankita Somani022-39357800 Ext: 6819
Bharti AirtelPerformance highlights
4QFY2013 Result Update | Telecom
May 3, 2013
7/30/2019 Bharti Airtel 4Q FY 2013
2/14
Bharti Airtel |4QFY2013 Result Update
May 3, 2013 2
Exhibit 1:4QFY2013 Financial performance (Standalone, Indian GAAP)
(` cr) 4QFY13 3QFY13 % chg (qoq) 4QFY12 % chg (yoy) FY2013 FY2012 % chg (yoy)Net sales 11,548 11,299 2.2 10,757 7.4 45,351 41,604 9.0Access charges 1,832 1,949 (6.0) 1,537 19.2 7,421 5,809 27.8License fees and spectrum charges 1,235 1,204 2.6 1,223 1.0 4,882 4,694 4.0
Employee costs 405 386 5.1 337 20.4 1,511 1,392 8.6
Other expenses 4,587 4,585 0.0 4,152 10.5 18,066 16,066 12.5
Total operating expenses 8,060 8,124 (0.8) 7,248 11.2 31,880 27,960 14.0
as % to sales 69.8 71.9 67.4 70.3 67.2
EBITDA 3,489 3,176 9.9 3,510 (0.6) 13,471 13,644 (1.3)Depreciation and amortization 1,757 1,738 1.1 1,535 14.4 6,827 5,916 15.4
EBIT 1,732 1,438 20.5 1,974 (12.3) 6,644 7,728 (14.0)
Interest cost 281 490 (42.7) 310 (9.5) 1,652 1,396 18.3
Other income 92 45 186 1,463 625
PBT 1,543 993 55.4 1,850 (16.6) 6,455 6,956 (7.2)
Tax 459 243 89.1 276 66.1 1,359 1,226 10.8
PAT 1,084 750 44.5 1,574 (31.1) 5,096 5,730 (11.1)EBITDA margin 30.2 28.1 211bp 32.6 (241)bp 29.7 32.8 (309)bp
EBIT margin 15.0 12.7 228bp 18.4 (336)bp 14.7 18.6 (392)bp
PAT margin 9.4 6.6 275bp 14.6 (525)bp 11.2 13.8 (254)bp
Source: Company, Angel Research
Modest domestic business performance: For 4QFY2013, Bharti reported 1.0%sequential growth in revenues to `20,460cr, with growth primarily being led by
India and South Asia mobile business.
Exhibit 2:Revenue break-up (Business segment wise)
Business segment (` cr) 4QFY13 3QFY13 % chg (qoq) 4QFY13 % chg (yoy)Mobile services India & South Asia 11,285 10,936 3.2 10,510 7.4
Mobile services Africa 5,897 5,972 (1.3) 5,308 11.1
Telemedia services 962 957 0.6 916 5.0
Enterprise services 1,314 1,422 (7.6) 1,121 17.3
Passive infrastructure services 2,719 2,635 3.2 2,418 12.4
Others 540 520 3.7 440 22.7
Eliminations 2,257 2,189 3.1 1,974 14.3
Net revenue 20,460 20,253 1.0 18,739 9.2Source: Company, Angel Research
7/30/2019 Bharti Airtel 4Q FY 2013
3/14
Bharti Airtel |4QFY2013 Result Update
May 3, 2013 3
Mobile business India and South Asia: The revenue of the mobile business inIndia and South Asia grew by 3.2% qoq to `11,285cr. The Indian mobility business
reported healthy KPIs with 4.8% qoq growth in minutes of usage (MOU) to
455min. Mobile traffic grew by 5.1% qoq to 253bn min. The overall as well asvoice average revenue per minute (ARPM) declined by 0.5% qoq each to
`0.42/min and `0.35/min, respectively. Consequently, the overall as well as voice
ARPU grew by 4.2% and 4.3% qoq to `193/month and `159/month. The churn
level has come back to a comfortable position after eight quarters and stood at
3.2%. The subscriber base grew to 188.2mn from 181.9mn in 3QFY2013, a net
addition of ~6.3mn subscribers. VAS as a percentage of mobility revenue inched
up slightly to 17.4% from 17.3% during 3QFY2013. The growth in non-voice
revenues was led by growth in data revenue, which grew from 5.7% to 6.5% of
total mobile revenues. Data ARPU increased to `55 from `47 in 3QFY2013. The
data customer base of the company increased by 4.8% qoq to 43.5mn. Data
usage per subscriber increased to 187MB from 161MB in 3QFY2013. Thecompanys data revenue has been growing at a CQGR of ~12.5% over the last
four 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
423
419
431
433
417
435
455
(4.9)
(1.0)
2.8
0.4
(3.8)
4.44.8
(6)
(4)
(2)
0
2
4
6
390
400
410
420
430
440
450
460
2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13 4QFY13
(%)
(min)
MoU qoq growth
16.115.8
16.2 16.3
16.8
17.3 17.4
15
16
17
18
2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13 4QFY13
(%)
VAS share
0.4
3
0.4
5
0.4
4
0.4
3
0.4
3
0.4
3
0.4
2
0.9
3.2
(1.7)
(2.6)
(0.2)(0.1) (0.5)
(3)
(2)
(1)
0
1
2
3
4
0.30
0.35
0.40
0.45
0.50
2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13 4QFY13
(%)
(`/min)
ARPM qoq growth
183
187
189
185
177
185
193(3.8)
2.2
1.1
(2.2)
(3.9)
4.3
4.3
(8)
(4)
0
4
8
150
160
170
180
190
200
2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13 4QFY13
(%)
(`/month)
ARPU qoq growth
7/30/2019 Bharti Airtel 4Q FY 2013
4/14
Bharti Airtel |4QFY2013 Result Update
May 3, 2013 4
Telemedia services: The revenue of the telemedia business increased by just 0.6%qoq to `962cr, led by an improvement in APRU to `978/month from `973/month
in 3QFY2013. Bhartis subscriber base in this business reported a net addition of
4,695 subscribers to 3.3mn. The EBITDA margin on this business remained almostflat qoq to 43.6%.
Exhibit 7:Telemedia Subscriber base and ARPU trend
Source: Company, Angel Research
Passive infrastructure services: The revenues in the passive infrastructure servicessegment grew by 3.2% to `2,719cr. Bharti Infratel has a portfolio of ~33,120
towers with a tenancy ratio of 1.81x and Indus Towers has a portfolio of
~111,820 towers (111,241 in 3QFY2013) with a tenancy ratio of 1.99x. EBITDA
grew by 6.9% qoq to `1,044cr with EBITDA margin growing by 134bp qoq to
38.4%.
Exhibit 8:Trend in Passive Infrastructure Business (qoq)
Source: Company, Angel Research
India & South Asia capex during the quarter stood at `2,254cr vs `1,515cr in
3QFY2013. Full year FY2013 capex for India & South Asia business stood at
`9,596cr vs `6,415cr in FY2012.
3,
328
3,
317
3,
270
3,
272
3,
275
3,
278
3,
283
955
916
933
962971 973 978
800
850
900
950
1000
2,500
2,700
2,900
3,100
3,300
3,500
2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13 4QFY13
(`)
(in0
00's)
Telemedia subscribers (in 000 's ) ARPU
1.79 1.81 1.82 1.82 1.81 1.82 1.81
1.89 1.911.94 1.96
1.98 1.99 1.99
1.0
1.2
1.4
1.6
1.8
2.0
2.2
0
300
600
900
1,200
2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13 4QFY13
Tenancy(x)
No.oftowe
rs(in00's)
Bharti Infratel (BTIL) Indus BTIL tenancy Indus tenancy
7/30/2019 Bharti Airtel 4Q FY 2013
5/14
Bharti Airtel |4QFY2013 Result Update
May 3, 2013 5
Exhibit 9:4QFY2013 Financial performance (Consolidated, IFRS)
(` cr) 4QFY13 3QFY13 % chg (qoq) 4QFY12 % chg (yoy) FY2013 FY2012 % chg (yoy)Net revenue 20,460 20,254 1.0 18,739 9.2 80,359 71,475 12.4Operating expenditure 13,973 14,070 (0.7) 12,506 11.7 55,489 47,762 16.2EBITDA 6,487 6,184 4.9 6,233 4.1 24,870 23,712 4.9Depreciation & amortization 3,983 3,901 2.1 3,468 14.8 15,496 13,368 15.9
EBIT 2,504 2,283 9.7 2,765 (9.4) 9,374 10,344 (9.4)
Interest charges 1,210 1,332 (9.2) 1,057 14.4 4,384 3,819 14.8
Non operating expenditure - - - - - - - -
Other income - - - - -
PBT 1,295 951 36.1 1,707 (24.2) 4,990 6,526 (23.5)
Income tax 788 668 18.1 698 13.0 2,715 2,260 20.1
PAT 507 284 78.4 1,010 (49.8) 2,275 4,265 (46.7)
Share in earnings of associate - - (2) - (6)
Minority Interest (2) 0 (800.0) 2 (200.0) (23) (1) 1,630.8
Adj. PAT 509 284 79.3 1,006 (49.4) 2,297 4,261 (46.1)EPS (`) 1.3 0.7 79.4 2.6 (49.4) 6.0 11.2 (46.5)
EBITDA margin (%) 31.7 30.5 117bp 33.3 (156)bp 30.9 33.2 (223)bp
EBIT margin (%) 12.2 11.3 97bp 14.8 (251)bp 11.7 14.5 (281)bp
PAT margin (%) 2.5 1.4 109bp 5.4 (288)bp 2.9 6.0 (310)bp
Source: Company, Angel Research
Exhibit 10:Actual vs Angel estimates
(` cr) Actual Estimate % Var.Net sales 20,460 20,631 (0.8)
EBITDA margin (%) 31.7 29.7 201bp
PAT 509 532 (4.4)
Source: Company, Angel Research
Mobile Africa business: For 4QFY2013, Zain Africas revenue stood at `5,897cr,down 1.3% qoq. In USD terms, the revenue declined by 1.1% qoq to
US$1,120mn, as KPIs of Africa business remained under pressure. MOU declined
considerably by 14.2% qoq to 123min. The ARPU declined by 4.9% qoq to
US$5.9/month. The EBITDA during the quarter declined by 5.1% qoq at `1,501cr,
primarily due to higher network opex and weak KPIs. The EBITDA margin declinedby 103bp qoq to 25.5%. The capex during the quarter stood at `1,269cr vs
`867cr in 3QFY2013. Full year FY2013 capex for Africa business stood at
`3,940cr vs `7,166cr in FY2012.
Exhibit 11:Operating metrics for Zain Africa
4QFY13 3QFY13 % chg qoq 4QFY12 % chg yoyARPM (US/min) 4.8 4.3 10.8 5.6 (14.3)
MOU (min) 123 144 (14.2) 122 1.2
ARPU (US$/month) 5.9 6.2 (4.9) 6.8 (13.3)
Subscriber base (mn) 63.7 61.7 3.3 53.1 19.9
Source: Company, Angel Research
7/30/2019 Bharti Airtel 4Q FY 2013
6/14
Bharti Airtel |4QFY2013 Result Update
May 3, 2013 6
Consolidated margins improve
During the quarter, Bhartis consolidated EBITDA margin increased by 117bp qoq
to 31.7%. This was on the back of healthy performance in domestic businesses.
Segment-wise, the EBITDA margin of India & South Asia mobility business and
infrastructure services grew by 100bp and 134bp qoq to 31.3% and 38.4%,
respectively. Africa margins declined by 103bp qoq to 25.5%. The EBITDA margin
of other business segments such as enterprise services grew by 630bp qoq to
22.5%, while margin of telemedia business remained almost flat qoq at 43.6%.
While the operating performance of India mobile business was satisfactory, the
Africa business surprised negatively, impacted by several macro and country-
specific issues. The Management is confident that the worst is over in Africa and
margin improvement and FCF generation remain the key focus areas in Africa as
major investments are behind.
Exhibit 12:Segment-wise EBITDA margin trend (qoq)
Source: Company, Angel Research
Exhibit 13:Opex break-up (qoq)
Source: Company, Angel Research
33.8 34.0
30.3 31.0 30.331.3
38.841.0 40.3
42.4 43.543.6
16.914.6
16.515.4 16.2 22.5
37.3 38.636.5 37.5 37.0
38.4
10
20
30
40
50
3QFY12 4QFY12 1QFY13 2QFY13 3QFY13 4QFY13
(%)
Mobile services-India & South Asia Telemedia services
Enterprise services Passive infras tructure services
14.2 13.9 14.3 15.1 15.0 13.9
22.8 22.6 24.0 23.3 24.9 25.3
8.4 8.6 8.4 8.18.2 8.2
4.7 4.7 4.8 4.95.0 5.3
17.7 16.9 18.3 17.316.2 15.5
32.2 33.3 30.2 31.3 30.5 31.7
0
20
40
60
80
100
3QFY12 4QFY12 1QFY13 2QFY13 3QFY13 4QFY13
(%)
Access charges Network costs License fee Employee cost S,G&A cost EBITDA margin
7/30/2019 Bharti Airtel 4Q FY 2013
7/14
Bharti Airtel |4QFY2013 Result Update
May 3, 2013 7
Outlook and valuation
The company cited that despite the fact that the number of major telecom players
has fallen from more than a dozen to just seven, due to a Supreme Court ruling
that scrapped the licenses of a number of smaller firms due to a scandal-tarnished
sale, significant competition still prevails in the domestic market as promotions and
discount packs for customers continue. Going ahead, we are positive on the
companys Indian operations and expect tariffs 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 ~12.5% over the last four 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. We factor in an ARPM
increase of 2.5paise in FY2014E.
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 business back on track.
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 Management is
confident that the worst is over in Africa and margin improvement and FCF
generation remain the key focus areas in Africa as major investments are behind.
Going ahead, in the near term, elevated costs and pricing pressure in Africa might
weigh upon Bhartis performance. But the Management indicated that a potential
recovery, with double-digit growth in Nigeria (aided by regulatory intervention)
and Anglophone markets, even as Central African and Francophone markets
stabilize, will lead to improvement in Africa business performance. Along with this,
recent regulatory measures in Nigeria such as - a cut in termination charges by
40%, costlier on-net calls for MTN, and MNP - would help Bharti Airtel in Africa as
Nigeria contributes ~1/3rd to Bharti Africa revenues.
While operationally the performance in 4QFY2013 was in line on the revenue
front, regulatory issues still persist. Apart from this, higher debt, interest costs and
forex risks pose a risk to the earnings. We expect Bharti to post a revenue CAGR of
9.2% over FY2013-15E. 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 investments
made in 3G launches, still loom. Emerging regulatory clarity in the sector would be
positive for the sector in the medium to long term. Bharti being the leader in the
industry would be the key beneficiary of the same. The stock is currently trading at
5.4x FY2015E EV/EBITDA and 21.8x FY2015E EPS. We maintain our Accumulaterating on the stock. The SOTP based valuation method prices the stock at `338.
7/30/2019 Bharti Airtel 4Q FY 2013
8/14
7/30/2019 Bharti Airtel 4Q FY 2013
9/14
Bharti Airtel |4QFY2013 Result Update
May 3, 2013 9
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 in
Indus Towers, a JV between Bharti, Vodafone and Idea Cellular.
7/30/2019 Bharti Airtel 4Q FY 2013
10/14
Bharti Airtel |4QFY2013 Result Update
May 3, 2013 10
Profit and Loss account (Consolidated, IFRS)
Y/E March (` cr) FY2011 FY2012 FY2013E FY2014E FY2015ENet sales 59,467 71,475 80,359 86,592 95,860Roaming and access charges 7,499 9,869 11,733 12,411 14,060
% of net sales 12.6 13.8 14.6 14.3 14.7
Network operating exp. 12,993 16,180 19,588 21,729 22,897
% of net sales 21.8 22.6 24.4 25.1 23.9
License fee 5,166 6,112 6,619 7,322 8,153
% of net sales 8.7 8.6 8.2 8.5 8.5
Other expenses 13,774 15,602 17,550 17,909 20,316
Total expenditure 39,432 47,762 55,489 59,371 65,426
% of net sales 66.3 66.8 69.1 68.6 68.3
EBITDA 20,035 23,712 24,870 27,222 30,435% of net sales 33.7 33.2 30.9 31.4 31.7
Dep. and amortization 10,206 13,368 15,496 16,712 17,968
Non operating expenses 111 - - - -
EBIT 9,719 10,344 9,374 10,509 12,467Interest charges 2,182 3,819 4,384 4,140 3,838
Other income, net 129 - - - -
Profit before tax 7,666 6,526 4,990 6,369 8,629
Provision for tax 1,778 2,260 2,715 2,229 3,106
% of PBT 23.2 34.6 54.4 35.0 36.0
PAT 5,887 4,265 2,275 4,140 5,522Share in earnings of associate - (6) - - -
Minority interest (148) (1) (23) - -Adj. PAT 6,035 4,261 2,297 4,140 5,522EPS (`) 15.9 11.2 6.0 10.9 14.5
7/30/2019 Bharti Airtel 4Q FY 2013
11/14
Bharti Airtel |4QFY2013 Result Update
May 3, 2013 11
Balance sheet (Consolidated, IFRS)
Y/E March (` cr) FY2011 FY2012 FY2013E FY2014E FY2015ELiabilitiesShare capital 1,899 1,899 1,899 1,899 1,899
Reserves and surplus 46,868 48,713 48,423 52,119 57,197
Tot. shareholders funds 48,767 50,611 50,322 54,017 59,095Minority interest 2,856 2,770 4,089 4,089 4,089
Secured loans 53,234 49,715 61,548 58,329 46,962
Unsecured loans 8,437 19,308 11,412 13,582 17,649
Total debt 61,671 69,023 72,961 71,911 64,611Other liabilities 4,665 5,078 6,322 6,322 6,322
Total liabilities 117,959 127,482 133,693 136,339 134,117AssetsGross block 96,810 112,529 117,636 126,636 135,636
Acc. depreciation 31,668 45,036 48,793 65,505 83,473
Net block 65,142 67,493 68,843 61,578 52,163
Goodwill 63,732 66,089 68,081 68,081 68,081
Oth. non-current assets 1,918 3,543 4,185 5,185 6,185
Investments 622 1,813 6,745 9,245 11,745Inventories 214 131 111 200 200
Sundry debtors 5,493 6,374 6,643 8,117 8,879
Cash and equivalents 958 2,030 1,730 5,915 9,497
Other current asst 3,921 4,461 5,062 8,062 11,062
Total current assets 10,585 12,995 13,545 22,294 29,637Less: - current liab. 28,430 29,450 33,446 35,785 39,435Less:- provisions 118 129 184 184 184
Net current assets (17,962) (16,584) (20,085) (13,675) (9,981)Net deferred tax 4,506 5,128 5,925 5,925 5,925
Miscellaneous exp. - - - - -
Total assets 117,959 127,482 133,693 136,339 134,117
7/30/2019 Bharti Airtel 4Q FY 2013
12/14
Bharti Airtel |4QFY2013 Result Update
May 3, 2013 12
Cash flow statement (Consolidated, IFRS)
Y/E March (` cr) FY2011 FY2012 FY2013E FY2014E FY2015EPretax profit from operations 7,536 6,526 4,990 6,369 8,629
Depreciation 10,206 13,368 15,496 16,712 17,968
Expenses (deferred)/written off - - - - 1
Pre tax cash from operations 17,742 19,894 20,486 23,081 26,598
Other income/prior period ad 129 - - - -
Net cash from operations 17,872 19,894 20,486 23,081 26,598
Tax (1,778) (2,260) (2,715) (2,229) (3,106)
Cash profits 16,093 17,633 17,771 20,852 23,491(Inc)/Dec in
Current assets (3,628) (1,337) (851) (4,563) (3,762)
Current liabilities 17,666 1,032 4,050 2,339 3,650
Net trade working capital 14,038 (305) 3,200 (2,225) (112)
Cash flow from oper. actv. 30,131 17,328 20,971 18,628 23,379(Inc)/Dec in fixed assets (27,085) (15,719) (16,846) (9,448) (8,553)
(Inc)/Dec in intangibles (57,743) (2,357) (1,992) - -
(Inc)/Dec in investments 4,614 (1,191) (4,932) (2,500) (2,500)
(Inc)/Dec in net dfr. tax asset (3,257) (622) (797) - -
(Inc)/Dec in minority interest 328 (87) 1,319 - -
(Inc)/Dec in oth. non-curr. ast. (94) (1,631) (626) (1,000) (1,000)
Cash flow from investing actv. (83,237) (21,606) (23,874) (12,948) (12,053)Inc/(Dec) in debt 51,481 7,352 3,938 (1,050) (7,300)
Inc/(Dec) in equity/premium 1,130 (1,970) (2,135) - -
Others (635) 413 1,244 - -Dividends 444 444 444 444 444
Cash flow from financing actv. 51,532 5,351 2,602 (1,494) (7,744)Cash generated/(utilized) (1,575) 1,072 (300) 4,186 3,582Cash at start of the year 2,532 958 2,030 1,730 5,915
Cash at end of the year 958 2,030 1,730 5,915 9,497
7/30/2019 Bharti Airtel 4Q FY 2013
13/14
Bharti Airtel |4QFY2013 Result Update
May 3, 2013 13
Key ratios
Y/E March FY2011 FY2012E FY2013E FY2014E FY2015EValuation ratio (x)P/E (on FDEPS) 20.0 28.3 53.0 29.1 21.8
P/CEPS 7.4 6.8 6.8 5.8 5.1
P/BVPS 2.5 2.4 2.4 2.2 2.0
Dividend yield 0.3 0.3 0.3 0.3 0.3
EV/Sales 3.0 2.6 2.3 2.0 1.7
EV/EBITDA 9.0 7.8 7.4 6.5 5.4
EV/Total assets 1.5 1.5 1.4 1.3 1.2
Per share data (`)EPS 15.9 11.2 6.0 10.9 14.5
Cash EPS 42.8 46.4 46.9 54.9 61.9
Dividend 1.0 1.0 1.0 1.0 1.0
Book value 128.5 133.3 132.5 142.3 155.7
DuPont analysisTax retention ratio (PAT/PBT) 0.8 0.7 0.5 0.7 0.6
Cost of debt (PBT/EBIT) 0.8 0.6 0.5 0.6 0.7
EBIT margin (EBIT/Sales) 0.2 0.1 0.1 0.1 0.1
Asset turnover ratio (Sales/Assets) 0.5 0.6 0.6 0.6 0.7
Leverage ratio (Assets/Equity) 2.4 2.5 2.7 2.5 2.3
Operating ROE 12.4 8.4 4.6 7.7 9.3
Return ratios (%)RoCE (pre-tax) 8.2 8.1 7.0 7.7 9.3
Angel RoIC 18.5 18.0 16.4 19.8 27.8RoE 12.4 8.4 4.6 7.7 9.3
Turnover ratios (x)Asset turnover (fixed assets) 0.7 0.6 0.6 0.6 0.7
Receivables days 34 33 30 30 30
Payable days 263 225 220 220 220
7/30/2019 Bharti Airtel 4Q FY 2013
14/14
Bharti Airtel |4QFY2013 Result Update
Research Team Tel: 022 - 3935 7800 E-mail: [email protected] Website: www.angelbroking.com
DISCLAIMERThis document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investmentdecision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make
such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies
referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and
risks of such an investment.
Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make
investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this
document are those of the analyst, and the company may or may not subscribe to all the views expressed within.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and
trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
fundamentals.
The information in this document has been printed on the basis of publicly available information, internal data and other reliablesources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as thisdocument is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any wayresponsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report .Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify,nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. WhileAngel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory,compliance, or other reasons that prevent us from doing so.
This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,
redistributed or passed on, directly or indirectly.
Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or
other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in
the past.
Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in
connection with the use of this information.
Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, pleaserefer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited andits affiliates ma have investment ositions in the stocks recommended in this re ort.
Disclosure of Interest Statement Bharti Airtel
1. Analyst ownership of the stock No
2. Angel and its Group companies ownership of the stock No
3. Angel and its Group companies' Directors ownership of the stock No
4. Broking relationship with company covered No
Ratings (Returns): Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)Reduce (-5% to -15%) Sell (< -15%)
Note: We have not considered any Exposure below `1 lakh for Angel, its Group companies and Directors