Bharti Airtel 4Q FY 2013

7/30/2019 Bharti Airtel 4Q FY 2013

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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

[email protected]

Bharti AirtelPerformance highlights

4QFY2013 Result Update | Telecom

May 3, 2013


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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


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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)


Exhibit 4:Trend in VAS share (qoq)


Exhibit 5:Trend in ARPM (qoq)


Exhibit 6:Trend in ARPU (qoq)


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


(%)

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


(%)

(`/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


(%)

(`/month)

ARPU qoq growth


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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


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)


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


(`)

(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


Tenancy(x)

No.oftowe

rs(in00's)

Bharti Infratel (BTIL) Indus BTIL tenancy Indus tenancy


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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


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)


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



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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)


Exhibit 13:Opex break-up (qoq)


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


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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.


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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.


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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


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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


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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


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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


14/14


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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

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Ratings (Returns): Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)Reduce (-5% to -15%) Sell (< -15%)

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Documents

Bharti Airtel 4Q FY 2013