Idea Cellular: Vodafone, Idea get prepared to fight battle of capacity

Idea Cellular

BSE SENSEX

29,519

S&P CNX

9,127

20 March 2017

Update

| Sector:

Telecom

CMP: INR98

TP: INR120 (+22%)

Upgrade to buy

Vodafone, Idea get prepared to fight battle of capacity

Dominant position, synergy gains post-merger to drive healthy EBITDA growth

Stock Info

Bloomberg

Equity Shares (m)

52-Week Range (INR)

1, 6, 12 Rel. Per (%)

M.Cap. (INR b)

M.Cap. (USD b)

12M Avg Val (INR M)

Free float (%)

IDEA IN

3,600.5

128 / 66

-12/13/-23

351.4

5.4

1193

57.6

Financials Snapshot (INR b)

FY17E FY18E

Y/E MARCH

Net Sales

354.6 346.9

EBITDA

98.9

91.4

-11.1 -47.7

EPS (INR)

-3.1 -13.2

EPS Gr. (%)

-134.7 -254.8

BV/Sh. (INR)

68.5

55.2

RoE (%)

-4.4 -21.4

RoCE (%)

2.5

-0.2

P/E (x)

-31.7

-7.4

P/BV (x)

1.4

1.8

Shareholding pattern (%)

As On

Promoter

DII

FII

Others

FY19E

373.5

101.0

-50.2

-14.0

353.3

42.8

-28.5

0.3

-7.0

2.3

The telecom battleground is all set to intensify with Idea and Vodafone announcing to

merge their businesses in a deal that will create a telecom giant. The merged entity is

valued at 8.3x on FY19E with an EV of INR1,779b – Idea will issue shares at a swap ratio of

1:1 to Vodafone India shareholders. The deal will allow the merged company to

command a leadership position in spectrum (with a 24% share) and broadband sites. This

could lead us to revise up our revenue market share estimates (we have factored decline

of 250-300bp for both the companies). The current sub-30% EBITDA margin could scale up

to 36-39% over next 4-5 years, led by synergies and scale benefits. Furthermore, reducing

capex requirement and tower sale could lower leverage to around 4x by FY19E. We

upgrade Idea to Buy with a target price of INR120, implying 9x EV/EBITDA on FY19E for

the combined entity. In our view, the rich valuation is justified, as the expected recovery

from FY19 could drive EBITDA CAGR of 18% over FY18-22.

Deal contours in line with expectations

In line with our expectations, Vodafone will have 50% shareholding in the merged

entity, implying a share swap ratio of 1:1. Pro forma net debt as of end-December

2016 is INR1,079b (Vodafone: INR552b, and Idea: INR527b), with an EV of

INR1,779b at current price. The deal includes: 1) Idea’s consolidated entity,

including wireless and tower businesses and 11.15% Indus stake and 2) Vodafone’s

mobility business and standalone towers (but not its 42% stake in Indus). Idea’s

promoters will buy 5% from Vodafone at a price of INR110/share, with effective

shareholding of 26% and 45%, respectively. Additionally, Idea has the right to

acquire additional 9.5% stake from Vodafone at a price of INR130/share over next

four years to create equal shareholding of 35.5% for each promoter group.

Dec-16 Sep-16 Dec-15

42.5

6.9

24.3

26.3

42.2

6.6

25.1

26.1

42.2

5.4

24.1

28.3

Vodafone, Idea getting prepared to fight the battle of capacity

Vodafone and Idea will have combined spectrum market share of 24%, above

Bharti’s 21% and RJio’s 19%. This implies a sizeable spectrum/circle of ~51.

Additionally, it will have ~273,000 sites, of which ~170,000 will be broadband sites,

higher than estimated RJio’s broadband sites and in line with Bharti’s. This should

allow the combined company to accommodate over 15x more data volumes than

currently, and thus match RJio’s data offerings. We continue believing that the

industry is moving away from price/volume to subscriber/ARPU metrics on the

back of ARPU-accretive and bundled (voice and data) offerings. Thus, pricing-led

elasticity gains should support revenue growth with limited incremental costs.

FII Includes depository receipts

Stock Performance (1-year)

Idea Cellular

Sensex - Rebased

130

110

Revenue market share may be revised up from FY19

Our current estimates for both Vodafone and Idea factor in ~250-300bp market

share dilution over FY16-21E, given their weak competitive footing on individual

basis. We, however, believe this could be revised up FY19 onward if the deal is

completed over next 12 months, as the combined entity will have the wherewithal

to compete effectively.

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.

Aliasgar Shakir

(Aliasgar.Shakir@motilaloswal.com); +91 022 3982 5423

Jay Gandhi

(Jay.Gandhi@MotilalOswal.com); +91 22 6129 1546

Idea Cellular

Synergies to come in FY20E; earnings recovery 3-4 quarters away

We believe the merger benefits will be reflected only from FY19-20E once the

impact of subscriber down-trading toward RJio’s INR303 price plans is completed.

Our pro forma workings for the combined entity indicate an EBITDA decline of 9% in

FY18E after a steep fall of 18% in FY17E. However, we believe the expected industry

recovery in FY19 and the synergy gains from the merger from FY20 could drive 18%

EBITDA CAGR over FY18-22E. As the back-ended network, IT and SG&A related cost

synergies accrue from FY20E, the combined entity could record EBITDA margin of

36%-39% in FY21-22E (in line with Bharti’s 39-40% margin). This does not factor in

revision in revenue market share dilution beyond FY19E.

Lower capex requirement could improve FCF, reducing net debt

Total capex spend of both Vodafone and Idea on individual basis stands at

~INR150b, which could come down to INR100-120b post-merger due to the benefit

from complementary network and redeployment of 20-25% of overlapping network.

With improving EBITDA from FY19E and reducing capex, potential FCF improvement

could be ~INR80-100b, allowing the merged entity to reduce FY19E net debt to

EBITDA to 5x. Furthermore, the sale of the overall tower business could generate

over INR150-200b, reducing net debt to EBITDA to 4x in FY19E.

Not a valuation call; expect earnings recovery to provide valuation support

Based on our pro forma workings for the combined entity, the stock is valued at 8.3x

on FY19E EBITDA, which appears on the higher side. However, there are limited

negatives, and the stock could offer strong upside over next three years. Our

optimism on the stock comes from: 1) Idea’s favorable swap ratio of 1:1 for

Vodafone, despite being a smaller revenue market share company (18% v/s

Vodafone’s 23%); 2) industry recovery and potential ARPU accretion over 3-4

quarters as the recent entrant RJio starts charging from 1 April 2017and indicates its

ARPU accretion strategy. 3) Strong competitive position of the merged entity, which

could lead us to revise upward our market share assumption; and 4) steep synergy

gains, which could start showing in 6-8 quarters. We upgrade Idea to Buy (from

under review) with a target price of INR120, implying 9x EV/EBITDA on merged

company FY19E earnings.

20 March 2017

Idea Cellular

Vodafone-Idea deal concall highlights

Deal contours

1.) All Vodafone India assets, excluding its 42% Indus stake, will be merged with

Idea.

2.) A share swap ratio of 1:1 has been proposed. Idea’s share price is fixed at

INR72.5 merely to understand valuation at the time of deal initiation.

3.) Equal partnership is the basic principal of the transaction in terms of assets,

earnings and shareholding rights. The merger will broadly include: (i) Idea’s

consolidated business – mobility, NLD/ILD, payment banks, towers and Indus

holding and (ii) Vodafone’s mobility and standalone 10,000 towers. Vodafone

will hold a 45.1% stake after transferring 4.9% to Idea, with the latter having the

right to acquire of 9.5% in four years for INR946b (i.e. 130/share) to reach equal

partnership. From the fifth year, if equalization is not achieved, Vodafone will

sell 9.5% in the merged entity over five years.

4.) The deal will be completed after approvals from the Competition Commission of

India, the Department of Telecom, tribunal, shareholders and debt holders.

5.)

The 4.9% stake to be acquired by the Aditya Birla Group will not be from any

of the listed companies. It will be acquired from one of the promoter group’s

unlisted entities.

6.) The number of shares will be largely double of Idea’s current shareholding of

3,600m, with some adjustment of ESOPs.

Combined entity’s business

1.) The merged entity will have ~40.7% revenue market share (based on 400m

subscribers) and ~35% subscriber market share.

2.) The entity will be rank 1 or 2 in 21 out of the 22 circles.

3.) It will have over 1,800mhz spectrum, including 1,645mhz acquired through

auction. Of this, 1,200mhz will be broadband spectrum across the 900, 1,800,

2,100, 2500mhz bands, including 283mhz in the 900mhz band.

4.) The combination of two large entities will help offer voice and broadband

services on a pan-India basis.

5.) Vodafone’s strong presence in metros and Idea’s in urban/rural markets are

expected to drive growth and synergy. The merged company will get support

from both the Aditya Birla Group and the Vodafone Group to invest and expand

in broadband and wireless services.

6.) The board will have 12 directors, including six independent directors. The rest

will be from Idea and Vodafone (three each). Mr Kumar Mangalam Birla will be

the Chairman; the CFO will be chosen by Vodafone. The CEO and rest of the

management will be mutually agreed upon by both the companies.

7.) Spectrum and revenue caps need to be adhered after one year.

8.) Revenue and EBITDA of the merged entity stand at INR816b and INR244b,

respectively. Capex of the merged entity over the past year has been INR153b,

but it will fall going forward.

9.) Until the merger, both companies will operate independently and also

participate in spectrum auction, if any.

20 March 2017

Idea Cellular

Synergies

1.) The merged entity will have INR670b NPV of synergy, of which 60% will be

through operating cost reduction.

2.) The key reduction will come in the form of network cost, with 20%-25%

collocated sites in the network. Additionally, subscriber acquisition, back office,

IT cost (due to infrastructure sharing) and brand investments are expected to

decline. Capex synergy will come through a reduction in duplicate capex, IT

platforms and investments in single RAN technology.

3.) Spectrum consolidation of the two entities should increase capacity, despite a

20-25% reduction in sites.

4.) The NPV also builds in integration cost in the first year and spectrum

liberalization cost. There are 13 circles where spectrum needs to liberalize –

900mhz needs to be liberalized in three circles and 1,800mhz in 10 circles.

Introduction of spectrum harmonization can further benefit.

5.) Vodafone and Idea’s total spectrum is around 1,850mhz, of which 300mhz is

used for voice by each Vodafone and Idea. However, the combined entity will

only use 400mhz of spectrum for voice. The need for capex will therefore go

down and similarly opex requirement will reduce. The merged entity will invest

to increase capacity, not coverage. The combined sites at ~190,000 will have 20-

25% duplication, which will be rejigged to improve capacity. The least impact

will come for Indus as it will redeploy sites.

6.) The merged entity is in a position to deploy 1,800mhz and 2,500mhz spectrum

for broadband. Once the entire spectrum is deployed, the carrier additions will

raise capacity manifold.

7.) There are three large vendors in the market, which are equally spread among

circles – Ericson, Nokia and Huawei.

8.) Despite capex reduction, capacity will go up by 25-50x for the merged entity.

9.) The gains from higher spectrum on the same sites will increase capacity

significantly. This is not built into capex requirements.

10.) The estimated opex synergies are building conservatism and are not very

aggressive.

11.) There are nine circles where one of the two players is dominant, while the other

player is smaller. In such markets, operating synergy can be very high.

12.) In synergy calculation, employee cost is not included, which will be continued to

manage new avenues in the digital space. The overlapped employees will be

largely utilized toward new roles.

Business and outlook

1.) The telecom industry should see addition of 300-400m subscribers over next

few years, which are likely to be tapped by the merged entity.

2.) The metro, urban and semi urban markets will see ~500m broadband users, and

the merged company will leverage its high spectrum/sites and target these

consumers.

3.) Apart from wireless services, the combined company will provide fixed line,

VoLTE and other services.

4.) 700mhz spectrum is not required presently. Currently, the merged entity is

overflowing with spectrum. It will thus first deploy the current spectrum and

900mhz.

20 March 2017

Idea Cellular

5.) Net debt to EBITDA will reach at 3x if all cost and capex synergies are accrued.

Hence, there would not be a need for any equity infusion.

6.) 4QFY17 will see a decline in revenues; however, some recovery has been

witnessed since the new entrant has announced to begin commercial operations

from 1 April 2017.

7.) Until the merger is completed, both the companies will operate independently.

Thus, synergies may not be accrued before the merger.

8.) Revenue and spectrum caps may be required to be adhered to in FY19. This is

based on the regulatory approval for the merger in FY18 and the need to comply

with the caps post one year. RJio revenue accounting over next two years will

further adjust the revenue market share downward. In some of the circles

where revenue caps may be breached, the merged company will rejig its pricing

to be compliant.

9.) The merged entity will adopt a dual-brand strategy, instead of a single-brand

strategy.

Exhibit 1: Pro forma v/s Synergies (INR m)

IDEA + VODAFONE

Announced Approval

stage

FY16

FY17

FY18

763,267

747,025

-2%

259,534

34%

211,529

28%

732,755

-2%

192,960

26%

Year 1

FY19

791,628

214,104

27%

259,534

34%

945,485

699,996

6.3

3.6

211,529

28%

1,079,000

699,996

8.4

5.1

192,960

26%

214,104

27%

Year 2

FY20

845,797

245,281

29%

21,000

266,281

31%

Year 3

FY21

899,586

269,876

30%

50,400

320,276

36%

Year 4

FY22

Comments

INR B

Topline

Topline Growth

Current EBITDA

margin

Synergy EBITDA

EBITDA (post synergy)

EBITDA margin (post

synergy)

Debt

Market cap

EV/EBITDA (x)

Net Debt to EBITDA (x)

954,891 Factoring 250-300bp market share

dilution for Vodafone and Idea

over FY16-21E

305,565 Building recovery from FY19E

32%

67,200

Opex synergy is 60% of INR 140b

372,765

39%

total. Building 0% synergy in FY19

and 80% synergy in 4th year - FY22

1,079,000 1,079,000 1,079,000 1,079,000 1,079,000 Not factoring reduction in debt

due to potential tower sale in

FY19, and FCF generation

699,996 699,996 699,996 699,996 699,996

1,778,996 1,778,996 1,778,996 1,778,996 1,778,996

9.2

5.6

8.3

6.7

4.1

5.6

3.4

4.8

2.9

Source: Company, MOSL

1,645,481 1,778,996

Exhibit 2: Vodafone to get 45.1%; Idea to get 26% in Merged Co.

Pre Merger

Particulars

holding

42%

20%

38%

100%

Post Merger

Step 1: Share swap (1:1)

Step 2: Each promoter gets equal shareholding

Shares Shareholders Share

Share issued/

O/S

holding

O/S

(reduced) (m)

O/S

(reduced) (m)

holding

1,529

Vodafone

50.0%

3,601

(354)

3,247

(38,740)

45.1%

712

1,360

3,601

Idea

promoters

Axiata

Public

21.2%

9.9%

18.9%

1,529

712

1,360

354

1,882

712

1,360

38,740

26.1%

9.9%

18.9%

Source: Company, MOSL

Promoter

holding

Axiata

Public

Total

20 March 2017

Idea Cellular

Exhibit 3: Operator-wise revenue market share

Sistema

BSNL/MTNLShyam,Aircel, 5.7%

, 5.0%

4.0%

Tata Tele,

6.5%

Reliance,

4.2%

Bharti,

32.7%

Idea+Vodaf

one, 41.9%

Source: Company, MOSL

Exhibit 4: Operator-wise subscriber market share

Sistema

Shyam,

BSNL/MTNL 7.5%

, 9.3%

Tata Tele,

5.4%

Reliance,

8.3%

Idea+Vodaf

one, 36.2%

Source: Company, MOSL

Aircel, 8.6%

Bharti,

24.8%

Exhibit 5: Operator-wise 2G and broadband sites (nos)

2G Sites

broadband sites

170,844

85412

160,199

Bharti

130633

Idea

161,312

115000

75,900

140,000

Vodafone

270,633

Vodafone + Idea

115000

RJio

62000

RCOM

Source: Company, MOSL

Exhibit 6: Circle-wise Idea/Vodafone ARPU profile vs avg. Industry ARPUs

500

400

300

200

100

135

169 154 160 176

332

284

Idea

208

105 117 119

161

Vodafone

231

128

104

Circle Average ARPUs

201

155

135

350

300

250

200

150

100

159

106

101

Metro

A' Circle

B' Circle

C' Circle

Source: Company, MOSL

20 March 2017

Idea Cellular

Exhibit 7: Circle-wise Vodafone and Idea revenue market share (%)

75%

60%

45%

30%

15%

Idea

Vodafone

Metro

A' Circle

B' Circle

C' Circle

Source: Company, MOSL

Exhibit 8: Exhibit 9: Circle-wise Vodafone and Idea subscriber market share (%)

60%

45%

30%

15%

Idea

Vodafone

Metro

A' Circle

B' Circle

C' Circle

Source: Company, MOSL

20 March 2017

Idea Cellular

Exhibit 9: Vodafone+ Idea combined spectrum holdings across bands and potential cap breaches

Circles

Delhi

Mumbai

Kolkata

Gujarat

Karnataka

Tamil Nadu

Kerala

Punjab

Haryana

UP W

UP E

Rajasthan

Bihar

Orissa

Assam

J&K

Total

Vodafone + Idea Combined spectrum holdings (mhz)

800 900 1800

2100

2300

2500

Total

14.4

142

388

195

370

1,124

Idea + Vodafone holdings (As % of current + available spectrum)

800

900

1800

2100

2300

2500

Total

45%

33%

13%

50%

19%

50%

24%

25%

50%

20%

35%

28%

25%

50%

19%

69%

23%

38%

10%

75%

30%

64%

33%

25%

75%

27%

25%

24%

13%

25%

12%

25%

35%

13%

12%

22%

28%

38%

12%

67%

37%

25%

11%

50%

27%

26%

39%

25%

19%

66%

24%

38%

50%

25%

64%

25%

50%

25%

31%

27%

50%

28%

34%

29%

38%

50%

27%

40%

29%

13%

50%

24%

34%

44%

13%

50%

20%

29%

11%

25%

13%

31%

11%

25%

12%

27%

32%

11%

50%

17%

54%

13%

50%

19%

48%

13%

50%

19%

32%

13%

25%

13%

33%

32%

22%

42%

20%

Source: Company, MOSL

Exhibit 10: Excess spectrum

Circles

Maharashtra

Gujarat

Kerala

Haryana

UP W

Assam

Total

900 Mhz Value (INRm)

3.9

27,132

2.4

14,537

3.1

10,306

4,082

2.5

13,848

14.9

69,906

1800 Mhz

Value (INRm) 2500mhz Value (INRm)

5,510

3,705

-603

9,215

Source: Company, MOSL

-1.675

Exhibit 11: Operator/band-wise spectrum portfolio (In Mhz)

Bharti

Vodafone

Idea

Reliance Jio

Others

Total

800 Mhz

171

256

428

900 Mhz

116

169

427

1800 Mhz

274

182

206

146

362

1,170

2100 Mhz

125

115

300

620

2300 Mhz

470

600

1,700

2500 Mhz

200

170

370

Total Spectrum (Mhz)

986

579

545

918

1,687

4,715

Spectrum Share

20%

12%

19%

36%

Source: Company, MOSL

20 March 2017

Idea Cellular

Financials and Valuations

Consolidated - Income Statement

Y/E March

Total Income from Operations

Change (%)

Total Expenditure

% of Sales

EBITDA

Margin (%)

Depreciation

EBIT

Int. and Finance Charges

PBT bef. EO Exp.

Share of profits of associates

PBT after EO Exp.

Total Tax

Tax Rate (%)

Reported PAT

Adjusted PAT

Change (%)

Margin (%)

FY13

224,577

14.9

164,531

73.3

60,045

26.7

34,778

25,268

9,495

15,773

5,664

35.9

10,109

39.8

4.5

FY14

265,189

18.1

181,852

68.6

83,337

31.4

45,194

38,143

7,700

30,443

10,765

35.4

19,678

94.7

7.4

FY15

315,709

19.1

207,592

65.8

108,117

34.2

53,036

55,081

5,755

49,325

17,396

35.3

31,929

62.3

10.1

FY16

359,809

14.0

229,510

63.8

130,300

36.2

66,508

63,792

16,545

47,247

16,447

34.8

30,799

-3.5

8.6

FY17E

354,634

-1.4

255,771

72.1

98,864

27.9

78,457

20,407

36,737

-16,330

4,402

-11,928

-843

7.1

-11,085

-136.0

-3.1

FY18E

346,913

-2.2

255,559

73.7

91,354

26.3

92,606

-1,252

51,341

-52,593

4,903

-47,689

0.0

-47,689

330.2

-13.7

(INR Million)

FY19E

373,509

7.7

272,489

73.0

101,019

27.0

98,575

2,445

52,692

-50,247

0.0

-50,247

5.4

-13.5

Consolidated - Balance Sheet

Y/E March

Equity Share Capital

Total Reserves

Net Worth

Total Loans

Deferred Tax Liabilities

Capital Employed

Gross Block

Less: Accum. Deprn.

Net Fixed Assets

Goodwill on Consolidation

Capital WIP

Total Investments

Curr. Assets, Loans&Adv.

Inventory

Account Receivables

Cash and Bank Balance

Loans and Advances

Curr. Liability & Prov.

Account Payables

Provisions

Net Current Assets

Appl. of Funds

FY13

33,143

111,073

144,217

140,438

11,180

295,834

467,357

175,818

291,539

8,811

10,280

53,092

726

9,601

1,429

41,336

67,949

64,719

3,230

-14,857

295,834

FY14

33,196

132,073

165,269

206,350

18,133

389,752

516,970

221,012

295,958

114,194

2,155

53,206

683

8,006

1,881

42,636

75,823

68,960

6,863

-22,616

389,752

FY15

35,978

194,314

230,292

268,591

19,015

517,898

618,207

262,871

355,336

51,405

115,267

82,598

710

9,789

15,537

56,562

86,769

78,013

8,756

-4,171

517,898

FY16

36,005

221,670

257,675

415,031

30,714

703,420

986,766

303,848

682,918

60,986

13,728

68,807

1,065

11,776

7,818

48,148

123,081

112,331

10,750

-54,273

703,420

FY17E

36,005

210,585

246,590

573,284

30,714

850,588

1,194,745

382,304

812,441

60,986

13,728

63,375

876

9,580

7,217

45,702

100,004

91,521

8,483

-36,628

850,588

FY18E

36,005

162,896

198,901

603,380

30,714

832,995

1,269,745

474,910

794,835

60,986

13,728

72,107

928

11,311

9,822

50,047

108,724

98,393

10,331

-36,615

832,995

(INR Million)

FY19E

36,005

117,956

153,961

604,486

30,714

789,161

1,344,745

573,485

771,260

60,986

13,728

59,145

1,015

11,183

-6,200

53,147

116,021

106,094

9,926

-56,875

789,161

20 March 2017

Idea Cellular

Financials and Valuations

Ratios

Y/E March

Basic (INR)

EPS

Cash EPS

BV/Share

DPS

Payout (%)

Valuation (x)

P/E

Cash P/E

P/BV

EV/Sales

EV/EBITDA

Dividend Yield (%)

Return Ratios (%)

RoE

RoCE

RoIC

Working Capital Ratios

Fixed Asset Turnover (x)

Asset Turnover (x)

Inventory (Days)

Debtor (Days)

Leverage Ratio (x)

Current Ratio

Interest Cover Ratio

Net Debt/Equity

FY13

2.8

12.5

40.1

0.3

11.5

FY14

5.5

18.0

45.9

0.4

7.9

FY15

8.9

23.6

64.0

0.6

8.1

11.0

4.1

1.5

1.9

5.6

0.6

16.1

8.2

11.7

0.5

0.6

1.0

9.6

0.6

FY16

8.6

27.0

71.6

0.6

8.4

11.4

3.6

1.4

2.1

5.8

0.6

12.6

7.1

8.7

0.4

0.5

0.6

3.9

1.5

FY17E

-3.1

18.7

68.5

0.0

-31.7

5.2

1.4

2.6

9.3

0.0

-4.4

2.5

2.7

0.3

0.4

0.6

2.2

FY18E

-13.2

12.5

55.2

0.0

-7.4

7.8

1.8

2.7

10.3

0.0

-21.4

-0.2

0.3

0.4

0.7

0.0

2.9

FY19E

-14.0

13.4

42.8

0.0

-7.0

7.3

2.3

2.6

9.5

0.0

-28.5

0.3

0.5

0.0

3.9

0.3

7.4

5.9

6.0

0.5

0.8

2.7

0.9

0.4

12.7

7.5

9.0

0.5

0.7

5.0

1.2

Consolidated - Cash Flow Statement

Y/E March

OP/(Loss) before Tax

Depreciation

Interest & Finance Charges

Direct Taxes Paid

(Inc)/Dec in WC

CF from Operations

Others

CF from Operating incl EO

(Inc)/Dec in FA

Free Cash Flow

(Pur)/Sale of Investments

Others

CF from Investments

Issue of Shares

Inc/(Dec) in Debt

Interest Paid

Dividend Paid

Others

CF from Fin. Activity

Inc/Dec of Cash

Opening Balance

Closing Balance

FY13

10,109

34,778

9,963

-4,110

6,096

56,836

6,135

62,971

-34,766

28,205

657

-34,109

248

-10,368

-9,283

-250

-19,653

9,209

1,521

1,429

FY14

19,678

45,194

8,564

-6,384

5,354

72,406

9,786

82,192

-36,448

45,744

-29,194

-65,642

263

-15,936

-7,682

-1,306

-24,661

-8,111

10,729

1,881

FY15

31,929

53,036

9,337

-11,043

5,540

88,800

15,379

104,179

-41,576

62,603

-15,680

-57,256

37,374

52,355

-6,656

-2,792

80,280

127,202

3,543

15,537

FY16

30,799

66,508

18,498

-10,789

-3,429

101,587

18,512

120,100

-75,157

44,943

-54,772

-129,928

175

-86,558

-8,505

-2,598

-97,486

-107,315

130,745

23,430

FY17E

-11,085

78,457

36,737

-18,246

85,862

-207,980

-122,117

-207,980

158,253

-36,737

121,516

-601

7,818

7,217

(INR Million)

FY18E

-47,689

92,606

51,341

2,592

98,850

-75,000

23,850

-75,000

30,096

-51,341

-21,245

2,605

7,217

9,822

FY19E

-44,940

98,575

52,692

4,238

110,565

-75,000

35,565

-75,000

1,106

-52,692

-51,586

-16,021

9,822

-6,200

20 March 2017

Idea Cellular

NOTES

20 March 2017

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Idea Cellular

Disclosure of Interest Statement

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

Served as an officer, director or employee -

IDEA CELLULAR

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20 March 2017