29 April 2016
4QFY16 Results Update | Sector: Telecom
BSE SENSEX
25,607
Bloomberg
Equity Shares (m)
M.Cap. (INR b) / (USD
b)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
Avg Val INR m
Free float (%)
S&P CNX
7,850
BHARTI IN
3,997.4
1,453/21.4
452/282
0/8/0
1630
33.3
Bharti Airtel
CMP: INR364
TP: INR420 (+15%)
Buy
EBITDA beats estimate; performance improves across all verticals
Financials & Valuation (INR Billion)
Y/E Mar
2016 2017E 2018E
Net Sales
965 1,061 1,159
EBITDA
341.9 366.1 403.7
Net Profit
42.7
49.7 67.6
EPS (INR)
10.7
12.4 16.9
EPS Gr. (%)
-17.6
16.5 36.0
BV/Sh (INR) 177.2 182.3 196.1
RoE (%)
6.2
6.9
8.9
RoCE (%)
6.1
5.2
6.3
Div. Payout% 15.3
13.3 12.2
Valuations
P/E (x)
P/BV (x)
EV/EBITDA(x)
Div. Yield (%)
34.0
2.1
7.0
0.5
29.2
2.0
6.7
0.5
21.5
1.9
5.7
0.6
Estimate change
TP change
Rating change
4QFY16 EBITDA above estimate:
BHARTI’s 4QFY16 consolidated EBITDA grew 14%
YoY and 8% QoQ to INR91.88b (7% higher than our estimate of INR85.3b), as
profitability improved across verticals. EBITDA for India mobile and Africa
surpassed estimates by 5.5%/12%, respectively and accounted for ~70% of the
overall EBITDA beat. Consolidated revenue grew 8.4% YoY and 3.7% QoQ to INR
249.59b (in line with our estimate of INR247.96b). PAT increased by 2.8% YoY and
15.5% QoQ to INR12.9b (30% higher than our estimate of INR9.86b). Reported
PAT included an exceptional loss of INR3b.
India mobile – Voice traffic growth led by step up in subscriber acquisitions:
India
mobile revenue grew 9% YoY and 5% QoQ to INR146.53b (2% higher than our
estimate of INR144.07b), led by 6% QoQ voice traffic growth. Mobile EBITDA grew
13% YoY and 8% QoQ to INR58.47b (5.5% higher than our estimate of INR55.44b).
Mobile traffic grew ~11% YoY and 6% QoQ, as BHARTI stepped up subscriber
acquisitions in 4QFY16. The company added 16m subscribers in 2HFY16 (7.9m
subscribers in 4Q FY16). Voice RPM declined by 1.5% QoQ and data revenue grew
by 5% QoQ (23.3% contribution; 10% traffic growth).
Africa EBITDA ahead of estimate:
Africa EBIDTA grew by 4% QoQ to USD210m (vs.
our estimate of USD186m). Revenue remained flat QoQ at USD953m. The
revenue-weighted currency depreciation versus the USD in Africa over the last
year has been ~6%
Net debt up QoQ; INR14.3b buy-back approved:
Net debt increased QoQ by
~INR51b to INR839b, led primarily by spectrum-related liabilities. Spectrum
liability of ~USD600m was recognized in 4QFY16 and ~USD160m is yet to be
recognized. Capex increased by ~10% QoQ to ~INR60.6b. (24% capex/sales). The
company has guided for a capex of ~USD3b. We have modeled for a capex of
INR200-220b for FY16-18, largely for building data networks. BHARTI approved
buy-back of INR14.3b and recommended final dividend of INR1.4/sh.
Maintaining EBITDA estimate:
We are largely maintaining our EBITDA estimate,
but are raising our PAT estimate by 5%/1% for FY17/FY18 to factor in the
marginally higher Mobile earnings. We estimate a CAGR of 9% in consolidated
EBITDA over FY16-18E. BHARTI trades at prop. EV/EBITDA of 6.7x/5.7x
FY17E/FY18E. Maintain
Buy
with a revised target price of INR420 (INR 380 earlier),
based on 5.5x FY18 EV/EBITDA for India (ex towers), 4x EV/EBITDA for Africa, and
15% discount vs. TP for BhartiInfratel.
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
Jay Gandhi
(jay.gandhi@motilaloswal.com); +91 22 3089 6693

Bharti Airtel
India & South Asia EBITDA up 9% QoQ
India & South Asia revenue increased 4% QoQ to INR187.52b (vs our estimate of
INR186.17b).
EBITDA increased 9% QoQ to INR77.63b (vs our estimate of INR72.6b).
EBITDA margin improved 190bp QoQ to 41.4% (vs our estimate of 39%), led by
better margins across all segments.
Effective tax rate for India & South Asia has increased to 30.2% during FY16 vs
28% during FY15 on account of expiry/reduction of tax holidays benefits in
select units.
India Mobile: EBITDA up 8% QoQ
Mobile revenue increased ~9% YoY and ~5% QoQ to INR146.5b (vs. est of
INR144.07b).
Mobile EBITDA grew ~13% YoY and ~8% QoQ to INR58.47b (vs. est of
INR55.43b).
EBITDA margin improved ~130bp YoY and ~100bp QoQ to 39.9%.
Blended RPM declined 4% YoY/1.5% QoQ at 46.7p. Voice RPM declined 1.5%
QoQ to 33.3p.
Mobile traffic grew 11% YoY/6% QoQ to 308b minutes (vs. est: 291b minutes).
Data continued to grow strongly with traffic growth of 10% QoQ and data
revenue growth of ~6% QoQ. Data contribution increased marginally to 23.3% of
revenue in 4QFY16 from 23.1% in 3QFY16.
MOU per subscriber increased 2.6% QoQ at 415 minutes (vs. est: 415 minutes)
Mobile ARPU improved 1% QoQ to INR194 (vs est of INR192).
Blended monthly churn also remained flat QoQ at 3.3%.
Africa: Currency performance improves
Africa revenue remained flat QoQ at USD953m (vs est: USD941m).
EBITDA increased 4% QoQ to USD210m implying EBITDA margin of 22% (vs est:
20%.
Net loss declined 12.5% QoQ to USD59m led by lower forex loss.
Total minutes increased 4% QoQ to 34.9b but voice RPM increased 6.6% QoQ.
Subscriber base declined 2% QoQ to 80.6m.
Net debt at INR839b
Net debt increased QoQ by ~INR51b to INR839b primarily led by spectrum
related liabilities. Spectrum liability of ~USD600m was recognized in 4Q and
~USD160m is yet to be recognized. Capex increased ~10% QoQ to ~INR55b.
(23% capex/sales).
Total site additions increased from ~1700 in 3QFY16 to INR2900 in 4QFY16.
29 April 2016
2

Bharti Airtel
Story in Charts
Exhibit 1: India mobile KPIs
Mobile ARPU (INR)
Mobile MOU (mins)
Mobile RPM (p)
47.6 47.5
47.5
46.8
46.7
48.6
42.4
Source: Company, MOSL
Exhibit 2: Bharti India: YoY mobile traffic growth (%)
16
14
10
9
8 8
10 10
8 7
9
11
Exhibit 3: Bharti India: Mobile RPM trend (incl data)
1.87
YoY RPM (%)
Mobile RPM (INR)
6
5 5 5 5 5
7 7
5
2
4
4
1.54 1.17
-21 -17 -17 -17 -17 0
-20 -18
-1
-1
-24
0.93
0.77
0.64
0.53
0.44 0.44 0.46 0.48 0.47 0.47 0.48 0.50
Source: Company, MOSL
Source: Company, MOSL
Exhibit 4: Bharti India: Mobile data traffic
Data traffic (b MB)
QoQ growth (%)
25%
23%
22%
21%
20%19%
18%
26%
17%
16%
14%
14%
13%
12%
10%
Exhibit 5: Bharti India: Data revenue contribution and ARMB
Data revenue per MB (p)
35
32
Data revenue (% of wireless)
19%22%
23%
23%
22.87
29 29 31 30 30 28 28
27 27 27
4%
5% 6%
7% 7%
9%
16%18%
26 25 24
14%
12%
10%11%
Source: Company, MOSL
Source: Company, MOSL
29 April 2016
3

Bharti Airtel
Exhibit 6: Bharti India: Mobile churn rate per month (%)
7.9
8.8 8.8 8.5
7
5.9
5
-2
3.2 3.2 3.2
2.7 2.4 2.7
3.1
2.7 2.5
3.5
3.3
3.4
-2
1
7
Exhibit 7: Bharti vs Idea: QoQ India mobile traffic growth (%)
Bharti - QoQ growth
Idea - QoQ growth
6.4
7.2
9
5
5
4
8
5
-2 3 5 2
-4
3
-3
-6
4
1
9
5
4
-2
2
-3
1
5
8
6
45
-3
5
1
6
3
3.3
Source: Company, MOSL
Source: Company, MOSL
Exhibit 8: India mobile revenue and EBITDA margin
India mobile revenue (INR b)
EBITDA margin (%)
37%
39%
39%
Exhibit 9: Africa revenue and EBITDA margin
Africa mobile revenue (USD m)
EBITDA margin (%)
34%34%
34%
31% 31%
34%
32%
30% 29%
40%
33% 35%
39% 39%
37% 37%
34%
25
26
27%
28
30
34
26 25 27
27
24
26 25
24
22
22
21 21
20 21
Source: Company, MOSL
Source: Company, MOSL
Exhibit 10: Bharti: Mobile cell site base and quarterly
additions
Cellsites ('000)
Sites added ('000)
Exhibit 11: Consolidated net debt and net debt/EBITDA
Net Debt (INR b)
Net Debt/EBITDA (x)
5.1
0.9 0.9
1.01.9
3.4
2.0 2.3
1.0
1.7 1.1 1.4
0.7
1.6
1.7
3.6
1.1
1.9 2.9
1.7
2.84
2.99
2.53
2.26
2.77 2.61
2.05
1.87
2.15
2.08
2.37
2.39
2.58
2.42
2.27
2.09
2.02
2.07
2.18
Source: Company, MOSL
Source: Company, MOSL
29 April 2016
4

Bharti Airtel
Exhibit 12: Bharti Airtel: SOTP based on FY18
EBITDA (INR
Ownership
B)
Proportionate
EBITDA (INR b)
EV/EBITDA
Fair value
(INR b)
Value/Sh
India business (excl. towers)
Tower business (15% discount to fair value)
Africa business
Less net debt
Total Value
Shares o/s (b)
CMP
Upside (%)
310
58
100%
72%
90%
310
52
5.5
4.0
1,706
548
208
791
1,671
431
138
52
200
420
364
15
L
3.96
Exhibit 13: Bharti Airtel - Consolidated Segment wise Summary as per IFRS (INR m)
4QFY15*
Revenue
Mobile
Telemedia
Enterprise
Passive Infrastructure
Others (incl South Asia)
Africa
Eliminations
Consolidated Revenue
EBITDA
Mobile
Telemedia
Enterprise
Passive Infrastructure
Others (incl South Asia)
Africa
Eliminations
Consolidated EBITDA
EBITDA margin (%)
Mobile
Telemedia
Enterprise
Passive Infrastructure
Africa
Consolidated EBITDA margin
Depreciation and amortization
Operating income
Other income and share of JV/Associate
Net finance cost
Proforma Profit Before Taxes
Proforma Tax
Effective Tax Rate (%)
Proforma Profit After Tax
Proforma Minority Interest
Proforma Net Profit
*Numbers adjusted for exceptional expenses
134,135
11,288
17,805
13,518
10,769
62,153
-19,513
230,155
51,744
5,165
3,079
6,766
2,129
12,901
-1,279
80,505
38.6
45.8
17.3
50.0
20.8
35.0
37,785
42,720
1,825
19,390
25,155
10,668
42.4
14,487
-1,934
12,553
3QFY16*
139,750
11,951
19,265
14,104
12,349
62,506
-19,266
240,659
54,353
5,543
4,688
6,688
1,704
13,287
-1,514
84,748
38.9
46.4
24.3
47.4
21.3
35.2
43,451
41,297
-1,329
13,910
26,058
13,498
51.8
12,559
-1,390
11,169
4QFY16*
146,525
12,460
18,808
14,215
13,013
64,511
-19,936
249,596
58,474
5,774
5,269
7,130
2,559
14,233
-1,557
91,882
39.9
46.3
28.0
50.2
22.1
36.8
48,163
43,719
-884
17,139
25,696
10,762
42
14,934
-2,031
12,903
YoY%
9.2
10.4
5.6
5.2
20.8
3.8
2.2
8.4
13.0
11.8
71.2
5.4
20.2
10.3
21.7
14.1
133bps
58bps
1072bps
11bps
131bps
183bps
27.5
2.3
-148.4
-11.6
2.2
0.9
-53bps
3.1
5.0
2.8
QoQ%
4.8
4.3
-2.4
0.8
5.4
3.2
3.5
3.7
7.6
4.2
12.4
6.6
50.2
7.1
2.8
8.4
101bps
-4bps
368bps
274bps
81bps
160bps
10.8
5.9
-33.5
23.2
-1.4
-20.3
-992bps
18.9
46.1
15.5
4QFY16E
144,075
12,165
20,710
14,668
11,631
64,032
-19,322
247,958
55,437
5,693
4,349
6,881
1,745
12,708
-1,511
85,301
v/s Est (%)
1.7
2.4
-9.2
-3.1
11.9
0.7
3.2
0.7
5.5
1.4
21.2
3.6
46.7
12.0
3.0
7.7
38.5
143bps
46.8
-46bps
21.0
701bps
46.9
325bps
19.8
222bps
34.4
241bps
46,006
4.7
39,295
11.3
1,600
-155.3
16,595
3.3
24,300
5.7
13,613
-20.9
56.0
-1414bps
10,687
39.7
-831
144.4
9,856
30.9
Source: Company, MOSL
29 April 2016
5

Bharti Airtel
Exhibit 14: India Mobile: Operating Metrics
4QFY15
India - Wireless KPIs
Wireless traffic (b min)
RPM (p)
ARPU (INR)
MOU (min)
Data Traffic (b MB)
RPMb (p)
Monthly churn (%)
Voice RPM (p)
Non-voice revenue contribution
Data revenue contribution
278
48.6
202
416
87
26.8
2.5
36.2
23.7
17.6
3QFY16
290
47.5
192
405
134
23.8
3.4
33.8
28.9
23.1
4QFY16
308
46.7
194
415
147
22.9
3.3
33.3
28.9
23.3
YoY%
10.8
-3.9
-4.1
-0.2
69.4
-14.7
79bps
-8.2
522bps
568bps
QoQ%
6.0
-1.5
1.0
2.6
9.6
-3.8
-15bps
-1.5
2bps
20bps
4QFY16E
300
47.3
192
407
v/s Est (%)
2.5
-1.2
0.9
2.1
Source: Company, MOSL
Exhibit 15: Bharti Africa: Quarterly Performance (USDm)
4QFY15
Revenue
EBITDA
EBITDA margin (%)
Depreciation and amortization
EBIT
Net finance cost
Profit Before Taxes
Total Tax
Profit After Tax (before minorities)
Minority Interest
Net Profit
1,000
207
20.7
176
31
249
-218
-5
-213
30
-183
3QFY16
949
202
21.2
172
29
49
-20
63
-82
8
-74
4QFY16
953
210
22.0
196
14
35
-21
58
-79
20
-59
YoY%
-4.7
1.6
136bps
11.4
-54.3
-85.9
-90.4
-1260.0
-63.0
-33.3
-67.8
QoQ%
0.4
4.2
80bps
13.8
-52.3
-28.6
6.9
-7.4
-4.0
150.0
-20.6
4QFY16E
941
186
19.8
171
15
52
-36
63
-99
20
-79
v/s Est (%)
1.3
12.9
227bps
14.8
-8.5
-32.1
-42.1
-7.4
-20.1
0.0
-25.2
Bharti Africa: KPIs
Mobile Subs (m)
Mobile ARPU (USD/month)
Total Minutes of Use (b mins)
Minutes of Use/Sub/Month
Voice RPM (US Cents)
76.3
82.1
80.6
4.3
31.0
4.2
33.7
4.2
34.9
137
2.37
138
2.19
143
2.05
5.6
-3.4
12.5
4.1
-13.4
-1.8
-0.5
3.8
3.3
-6.6
80.6
3.9
0.0
7.6
Source: Company, MOSL
29 April 2016
6

Bharti Airtel
Exhibit 16: Key assumptions and value drivers
Mobile segment
Mobile - India
Subs (m)
YoY (%)
Total voice traffic (b min)
YoY%
Total data traffic (b MB)
YoY%
Average Rev Per User (Rs/month)
YoY%
Minutes of Use/Sub/Month
YoY%
Mobile RPM (Rs)
YoY%
Voice revenue per min (p)
YoY%
Data revenue per MB (p)
YoY%
Voice revenue (INR b)
YoY %
Data revenue (INR b)
YoY %
Data revenue as % of total revenue
Mobile Capex (INR b)
Mobile Capex/Sales (%)
Mobile - Africa
Subs (m)
YoY (%)
Netadds per month (m)
ARPU (USD/month)
YoY (%)
Capex (USD b)
Capex/Sales (%)
EBITDA margin (%)
FY11
162
27
792
30
FY12
179
12
881
12
FY13
191
4
954
9
FY14
203
9
1,010
6
147
205
5
428
0
0.48
5
37
5
30
0
380
0
44
0
9
41
8
69
9
0.5
5.6
-11
0.6
14
26
FY15
226
10
1,080
5
287
96
198
2
417
-4
0.47
7
37
1
27
-9
404
6
78
79
15
93
18
76
10
0.6
5.0
-10
1.1
24
23
FY16
251
11
1,171
8
503
75
193
-3
409
-2
0.47
-1
34
-8
24
-13
403
0
119
52
21
120
21
81
6
0.4
4.1
-19
0.7
18
21
FY17E
269
7
1,282
9
829
65
198
3
411
0
0.48
2
34
-2
19
-20
432
7
157
32
25
130
21
FY18E
284
5
1,370
7
1,227
48
207
4
413
1
0.50
4
33
-2
17
-12
453
5
204
30
29
129
19
201
-17
455
-1
0.44
-17
189
-6
431
-5
0.44
0
199
-1
431
1
0.46
-3
59
16
44
5
0.2
7.3
0.9
24
25
37
9
53
21
0.8
7.1
-2
1.5
37
26
41
9
64
19
0.9
6.3
-11
0.7
16
26
89
97
10
9
0.7
0.7
3.8
3.7
-6
-3
0.8
0.8
20
20
21
20
Source: Company, MOSL
29 April 2016
7

Bharti Airtel
Exhibit 17: Business Mix
Revenue (INR b)
Mobile
Telemedia
Enterprise
Passive Infrastructure
Others (incl South Asia)
Africa
Total revenue
Eliminations and others
Consolidated revenue
YoY%
EBITDA (INR b)
Mobile
Telemedia
Enterprise
Passive Infrastructure
Others (incl South Asia)
Africa
Total EBITDA
Eliminations and others
Consolidated EBITDA
YoY%
Capex (INR b)
Mobile
Telemedia
Enterprise
Others (incl South Asia)
Passive infrastructure
Africa
Consolidated capex
YoY%
Capex/Sales (%)
FY11
363
36
41
86
10
131
667
-72
595
42
FY11
126
16
10
32
-10
29
202
-3
200
19
FY11
59
8
4
14
23
36
143
71
24
FY12
403
37
46
96
16
199
797
-80
717
21
FY12
136
16
9
36
-9
53
241
-3
237
19
FY12
37
8
2
9
14
76
140
-2
20
FY13
459
37
49
105
19
231
901
-88
813
13
FY13
161
15
10
39
-8
69
287
-4
283
19
FY13
41
3
1
11
11
39
122
-13
17
FY14
504
38
53
115
22
264
995
-96
899
11
FY14
176
15
11
45
-4
89
331
-4
327
16
FY14
41
4
1
13
8
38
106
-13
15
FY15
520
44
67
54
43
269
998
-77
920
2
FY15
194
18
14
26
5
61
318
-5
313
-4
FY15
93
5
1
12
10
65
187
76
20
FY16
561
48
78
56
49
251
1043
-77
965
5
FY16
219
22
19
27
8
53
347
-6
342
9
FY16
120
7
3
16
10
45
200
7
21
FY17E
FY18E
628
696
54
59
83
87
63
71
52
56
265
283
1146
1252
-85
-93
1061
1159
10
9
FY17E
FY18E
232
258
26
28
20
21
31
36
8
9
55
58
372
410
-6
-7
366
404
7
10
FY17E
FY18E
130
129
10
3
2
3
16
15
10
11
53
57
221
218
10
-2
21
19
Source: Company, MOSL
29 April 2016
8

Bharti Airtel
Exhibit 18: Summary of estimate change
FY16
Revenue (INRb)
Old
New
Change (%)
EBITDA (INRb)
Old
New
Change (%)
EBITDA margin (%)
Old
New
Change (bp)
Depreciation (INRb)
Old
New
Change (%)
Net finance cost (INRb)
Old
New
Change (%)
Tax rate (%)
Old
New
Change (bp)
Net Profit (INRb)
Old
New
Change (%)
EPS (INR)
Old
New
Change (%)
964
965
0.2
335
342
2.0
34.8
35.4
62bps
172
175
2
68
69
1
56
52
-364bps
40
43
7.7
9.9
10.7
7.7
FY17E
1063
1061
-0.2
364
366
0.6
34.2
34.5
28bps
202
202
0
60
59
-1
53
52
-93bps
47
50
5.4
FY18E
1159
1159
0.0
402
404
0.4
34.7
34.8
15bps
213
213
0
58
60
4
49
49
-87bps
67
68
1.3
11.8
16.7
12.4
16.9
5.4
1.3
Source: Company, MOSL
29 April 2016
9

Bharti Airtel
Financials and valuations
Income Statement
Y/E March
Revenues
Change (%)
Total Expenses
EBITDA
% of Gross Sales
Depn. & Amortization
EBIT
Net finance cost
Other Income
PBT
Tax
Rate (%)
Minority Interest
Adjusted PAT
Change (%)
E: Inquire Estimates
Balance Sheet
Y/E March
Share Capital
Add. Paid up Capital
Reserves
Net Worth
Loans
Minority Interest
Other Liabilities
Deferred Tax Liability
Capital Employed
Gross Block
Less : Depreciation
Net Block
Other Non-Current Assets
Curr. Assets
Inventories
Debtors
Cash & Bank Balance
Short-term investments
Other Current Assets
Curr. Liab. & Prov.
Creditors
Other Current Liabilities
Net Curr. Assets
Appl. of Funds
2012
714,507
20.2
477,385
237,122
33.2
133,680
103,442
38,185
-73
65,184
22,602
34.7
-13
42,595
-29.6
2013
769,045
7.6
536,466
232,579
30.2
148,148
84,431
40,085
3,506
47,852
25,183
52.6
-88
22,757
-46.6
2014
857,460
11.5
579,690
277,770
32.4
156,496
121,274
48,379
5,750
78,644
48,450
61.6
2,467
27,727
21.8
2015
920,394
7.3
607,779
312,614
34.0
154,713
157,901
48,464
-838
108,599
53,904
49.6
2,860
51,835
86.9
2016
965,322
4.9
623,421
341,901
35.4
175,220
166,681
68,866
1,981
99,796
52,127
52.2
4,970
42,699
-17.6
2017E
1,060,856
9.9
694,747
366,108
34.5
201,964
164,144
59,341
5,000
109,803
57,558
52.4
2,521
49,725
16.5
(INR Million)
2018E
1,159,075
9.3
755,359
403,715
34.8
212,646
191,069
60,141
5,500
136,428
66,272
48.6
2,521
67,635
36.0
2012
18,988
56,499
430,626
506,113
690,232
27,695
31,920
18,861
1,274,821
1,776,560
440,740
1,335,820
86,711
148,084
1,308
63,735
20,300
18,934
43,807
295,795
243,461
52,334
-147,710
1,274,821
2013
18,988
56,499
427,729
503,216
667,363
40,886
36,166
22,300
1,269,932
1,923,675
637,011
1,286,663
108,685
196,906
1,109
67,824
16,078
65,546
46,349
322,321
273,147
49,174
-125,416
1,269,932
2014
19,987
123,456
454,117
597,560
758,958
42,102
47,247
26,894
1,472,761
2,085,053
678,908
1,406,145
165,429
260,198
1,422
62,441
49,808
98,606
47,921
359,011
299,258
59,753
-98,813
1,472,761
2015
19,987
123,456
476,121
619,564
803,556
48,525
41,769
21,358
1,534,772
2,401,065
899,625
1,501,440
203,108
253,270
1,339
67,252
11,719
124,100
48,860
423,047
361,013
62,034
-169,776
1,534,772
2016
19,987
123,456
512,858
656,301
950,430
51,984
93,023
21,706
1,773,444
2,892,449
1,075,186
1,817,263
181,050
250,359
1,692
73,106
37,087
58,681
79,793
475,228
410,339
64,889
-224,869
1,773,444
2017E
19,808
123,456
535,831
679,095
1,084,032
49,577
83,845
22,773
1,919,321
3,163,472
1,290,690
1,872,782
187,110
350,535
1,831
83,123
131,968
49,259
84,353
491,107
422,073
69,034
-140,571
1,919,321
(INR Million)
2018E
19,808
123,456
588,444
731,708
877,463
52,097
86,205
23,548
1,771,021
3,381,040
1,530,054
1,850,986
193,688
270,055
1,987
92,400
36,768
49,259
89,640
543,708
474,362
69,346
-273,653
1,771,020
29 April 2016
10

Bharti Airtel
Financials and valuations
Ratios
Y/E March
Basic (INR)
EPS
Cash EPS
Book Value
DPS
Payout %(Incl.Div.Taxes)
Valuation (x)
P/E
Cash P/E
EV/EBITDA
EV/Sales
Price/Book Value
Dividend Yield (%)
Profitability Ratios (%)
RoE
RoCE
Turnover Ratios
Debtors (Days)
Asset Turnover (x)
Leverage Ratio
Net Debt/Equity (x)
2012
11.2
46.5
140.7
1.1
10.0
2013
6.0
45.0
143.4
0.6
10.0
2014
7.0
46.6
161.8
2.1
30.4
2015
13.0
51.7
167.1
2.6
20.0
2016
10.7
54.5
177.2
1.6
15.3
2017E
12.4
63.0
182.3
1.7
13.3
2018E
16.9
70.1
196.1
2.1
12.2
32.4
7.8
8.8
2.8
2.6
0.3
51.8
7.8
7.9
2.4
2.2
0.6
28.0
7.0
7.0
2.3
2.2
0.7
34.0
6.7
7.0
2.4
2.1
0.5
29.2
5.8
6.7
2.2
2.0
0.5
21.5
5.2
5.7
1.9
1.9
0.6
8.1
6.2
4.2
4.3
4.7
5.0
7.9
6.6
6.2
6.1
6.9
5.2
8.9
6.3
33
0.65
32
0.71
27
0.79
27
0.80
28
0.75
29
0.73
29
0.80
1.2
1.1
1.0
1.0
1.2
1.2
1.0
Cash Flow Statement
Y/E March
Op.Profit/(Loss) bef Tax
Other Income
Interest Paid
Direct Taxes Paid
(Inc)/Dec in Wkg. Cap.
CF from Op.Activity
(inc)/Dec in FA + CWIP
Free Cash Flow
(Pur)/Sale of Investments
CF from Inv.Activity
Issue of Shares
Inc/(Dec) in Debt
Other Financing Activities
CF from Fin.Activity
Inc/(Dec) in Cash
Add: Opening Balance
Closing Balance
2012
237,122
-73
-38,185
-25,730
-18,280
154,854
-180,757
-25,904
-11,990
-192,748
-19,791
73,524
-5,113
48,620
10,725
9,575
20,300
2013
232,579
3,506
-40,085
-31,431
21,448
186,018
-98,991
87,027
-58,141
-157,132
-21,242
-22,869
11,005
-33,106
-4,222
20,300
16,078
2014
277,770
5,750
-48,379
-43,887
43,534
234,787
-275,978
-41,191
-78,209
-354,187
71,204
91,595
-9,669
153,131
33,730
16,078
49,808
2015
312,614
-838
-48,464
-55,281
-4,989
203,043
-250,008
-46,965
-15,049
-265,057
-13,854
44,598
-6,819
23,925
-38,089
49,808
11,719
2016
341,901
1,981
-68,866
-40,092
84,204
319,128
-491,043
-171,914
55,859
-435,184
-7,320
146,874
-8,050
131,504
15,448
11,719
37,087
2017E
366,108
5,000
-59,341
-64,075
-4,535
243,157
-257,483
-14,326
9,422
-248,061
-2,427
133,602
-11,563
119,612
114,708
37,087
131,968
(INR Million)
2018E
403,715
5,500
-60,141
-66,272
29,652
312,455
-190,850
121,605
0
-190,850
0
-206,569
-8,254
-214,823
-93,218
131,968
36,768
29 April 2016
11

Bharti Airtel
Corporate profile: Bharti Airtel
Company description
Bharti Airtel is an integrated telecom operator with
presence in wireless, fixed-line and broadband,
long
distance,
enterprise,
and
passive
infrastructure services across India, Sri Lanka,
Bangladesh and Africa. Bharti is the largest Indian
wireless operator with revenue market share of
~31% and population coverage of 86%. Bharti is the
fourth largest wireless company globally by
subscribers.
Exhibit 19: Sensex rebased
Exhibit 20: Shareholding pattern (%)
Mar-16
Promoter
DII
FII
Others
66.8
10.0
16.8
6.5
Dec-15
65.6
7.6
17.9
8.9
Mar-15
65.4
7.5
17.9
9.2
Exhibit 21: Top holders
Holder Name
LIC of India Child Fortune Plus Balanced Fund
Three Pillars Limited
ICICI Prudential Life Insurance Company Limited
Dodge and Cox International Stock Fund
% Holding
5.1
5.0
1.6
1.3
Note: FII Includes depository receipts
Exhibit 22: Top management
Name
Sunil Bharti Mittal
Gopal Vittal
Designation
Chairman
Managing Director & CEO
Exhibit 23: Directors
Name
Sunil Bharti Mittal
Gopal Vittal
Rajan Bharti Mittal
Ajay Lal*
Manish Kejriwal*
Dinesh Kumar Mittal*
Craig Edward Ehrlich*
Name
Obiageli Katryn Ezekwesili*
Vegulaparanan Kasi Viswanathan*
Bernardus Johannes Maria Verwaayen*
Manoj Kohli
Tan Yong Choo
Chua Sock Koong
Sheikh Faisal Thani Al-Thani
*Independent
Exhibit 24: Auditors
Name
S R Batliboi & Associates LLP
Chandrasekaran Associates
KPMG
R J Goel & Co
Type
Statutory
Secretarial Audit
Internal
Cost Auditor
Exhibit 25: MOSL forecast v/s consensus
EPS
(INR)
FY17
FY18
MOSL
forecast
12.4
16.9
Consensus
forecast
14.6
17.6
Variation
(%)
-15.0
-4.2
29 April 2016
12

Bharti Airtel
NOTES
29 April 2016
13

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BHARTI AIRTEL
No
No
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