24 April 2020
4QFY20 Results Update | Sector: Telecom
Bharti Infratel
Estimate changes
TP change
Rating change
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
BHIN IN
1,897
307.3 / 4.1
304 / 121
-6/-18/-26
1685
CMP: INR 166
TP: INR 170 (+2% )
Neutral
Future hinges on uncontrollable levers
Financials & Valuations (INR b)
Y/E March
FY20 FY21E FY22E
Sales
143.5 127.4 130.7
EBITDA
57.5 59.5 62.9
Adj. PAT
31.4 28.8 31.1
EBITDA Margin (%)
40.1 46.7 48.1
Adj. EPS (INR)
17.0 15.6 16.8
EPS Gr. (%)
25.0 -8.4
7.8
BV/Sh. (INR)
78.1 76.2 75.6
Ratios
Net D:E
-0.1 -0.1 -0.1
RoE (%)
21.7 20.2 22.1
RoCE (%)
17.2 16.3 19.1
Payout (%)
68.9 111.7 103.6
Valuations
EV/EBITDA (x)
4.8
4.6
4.2
P/E (x)
9.0
9.8
9.1
P/BV (x)
2.0
2.0
2.0
Div. Yield (%)
6.6
9.8
9.8
FCF Yield (%)
2.4 12.8 15.2
Shareholding pattern (%)
As On
Mar-20 Dec-19
Promoter
53.5
53.5
DII
3.6
2.6
FII
42.1
43.3
Others
0.8
0.6
FII Includes depository receipts
Bharti Infratel’s (BHIN) 4QFY20 revenue was broadly in line. LTL EBITDA was
a miss (14%) owing to higher other expenses, mainly due to doubtful debt
provisioning of INR1.93b. Tower addition stood at 1,128 (v/s 823 in
3QFY20).
We have cut our FY21/FY22E revenue estimates by 14%/16% due to the
sharp plunge in crude prices and lower rental rates. Subsequently, EBITDA
estimates have been trimmed by a lower quantum of 5% for both years, as
energy margins are a mere 5%.
LTL EBITDA (pre-Ind-AS 116) declines 12% QoQ to INR13b (14% miss)
Mar-19
53.5
1.6
43.9
1.0
Proforma consol. revenue at INR35.6b decreased 1.2% QoQ (in-line) due to
decline in Rental/Energy revenues. Rental revenue dipped 1.1% QoQ (2.5%
below est.) to INR21.9b and Energy revenue were 1.2% lower QoQ to
INR13.7b (in-line).
Proforma consol. EBITDA plunged 12.1% QoQ to INR13b (14% miss) on
16.3% QoQ decline in Rental EBITDA to INR12.2b (17.5% miss). On the other
hand, Energy EBITDA grew three-fold to INR815m (v/s our est. of INR307m).
The drop in EBITDA could be attributed to 2.5x increase in other expenses.
EBITDA margin shrank 450bp QoQ to 36.5% (510bp miss) on decline in
Rental EBITDA. While Rental EBITDA margin contracted 980bp to 55%,
Energy EBITDA margin expanded 430bp to 5.9%.
PBT/PAT declined 21% QoQ to INR7.9b/INR5.9b (14% miss).
Net tenancy adds stood at 431 (v/s 744 in 3QFY20) against 1,128 tower
addition (v/s 823 in 3QFY20). We believe that increasing ratio of single
tenancy towers is turning detrimental for capital efficiency and return
ratios.
Capex for 4QFY20 stood at INR5.6b (INR3.9b in 3QFY20) while operating FCF
stood at INR8.5b.
Highlights from management commentary
Tower addition:
Gross tower addition has doubled since last year and is at
a nine-year high. Over the last few years, interest for single tenant towers
has been high, which could reduce returns. However, management is
confident that these towers would be taken by a second tenant in the near
future due to coverage needs of operators.
Rent reduction opportunity:
BHIN is locked into a long-term agreement
with its landlord. However, post-COVID, if an opportunity exists,
management would renegotiate rentals.
Small cell
will play an important role in higher footfalls areas and is
expected to garner exponential demand with introduction of 5G.
Research Analyst: Aliasgar Shakir
(Aliasgar.Shakir@motilaloswal.com); +91 22 6129 1565
Suhel Shaikh
(Suhel.Ahmad@MotilalOswal.com); +91 22 5036 2611;
Anshul Aggarwal
(Anshul.Aggarwal@motilaloswal.com); +91 22 5036 2511
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.
24 April 2020
1
 Motilal Oswal Financial Services
Bharti Infratel
Valuation and view
We believe that BHIN’s competitive position is weakening. While its top tenant
VIL’s market standing and ability to invest continues to deteriorate, the
evolution of RJio with its own tower base and InvIT could reduce the viability of
BHIN’s operations. Thus, we remain cautious on the future prospects of BHIN.
We value BHIN on an SOTP basis and assign EV/tenancy of 1.7m and EV/EBITDA
of 5x on FY22E to arrive at a TP of INR170. The stock is trading at 4x on FY22E
with dividend yield of 9.8%, which should provide cushion from the downside.
Maintain
Neutral.
(INR m)
Quarterly Performance
Y/E March
(Consolidated)
Revenue from operations
YoY Change (%)
Total Expenditure
EBITDA
YoY Change (%)
Depreciation
Interest
Other Income
PBT
Tax
Rate (%)
Reported PAT
Adj PAT
YoY Change (%)
E: MOFSL Estimates
1Q
36,735
4.2
21,539
15,196
-3.5
5,389
-285
609
10,701
4,321
40.4
6,380
6,380
-3.9
FY19
2Q
3Q
36,683 36,402
0.6
-0.4
21,819 21,361
14,864 15,041
-7.9
-5.9
5,625
5,727
-442
-601
557
460
9,881 10,375
3,883
3,891
39.3
37.5
5,998
6,484
6,215
6,484
-2.7
10.8
4Q
36,003
-1.7
21,092
14,911
-6.4
5,498
-243
408
10,064
3,988
39.6
6,076
6,076
-4.3
1Q
36,297
-1.2
21,298
14,999
-1.3
5,390
-118
651
10,378
1,946
18.8
8,432
8,432
32.2
FY20
FY19
FY20
2Q
3Q
4Q
35,612 36,028 35,608 1,45,823 1,43,545
-2.9
-1.0
-1.1
8.6
-1.6
20,817 21,264 22,628 85,811
86,032
14,795 14,764 12,980 60,012
57,513
-0.5
-1.8
-13.0
1.8
-4.2
5,284 4,908 5,581 22,239
21,163
58
170
48 -1,571
159
349
336
576
2,034
1,912
9,802 10,022 7,927 41,021
38,103
140 2,557 2,021 16,083
6,664
1.4
25.5
25.5
39.2
17.5
9,662 7,465 5,906 24,938
31,439
9,662 7,465 5,906 25,155
31,439
55.5
15.1
-2.8
-8.4
25.0
4Q
FY20E Var (%)
36,203
-1.6
0.6
21,143
7.0
15,059
-13.8
1.0
6,005
-7.1
170 -71.8
332
73.6
9,217
-14.0
2,320
25.2
6,897
-14.4
6,897
-14.4
13.5
Key Performance Indicators
Y/E March
1Q
Bharti Infratel Standalone
FY19
2Q
3Q
4Q
1Q
FY20
2QE
FY19
3Q
4Q
FY20
4Q
FY20E
Total Towers (nos)
Total Co-locations (nos)
Average sharing factor
Sharing revenue per operator per month (INR)
Rental EBITDA margin (%)
Energy EBITDA margin (%)
EBITDA Margins (%)
EBIT Margin (%)
Adj. PAT Margins (%)
E:MOFSL Estimates
39,719 39,946 40,192 40,388 40,636 41,050 41,471 42,053 40,388 42,053 41,721
86,053 78,275 77,693 76,341 76,119 76,176 76,322 75,715 76,341 75,715 76,522
2.2
2.1
1.9
1.9
1.9
1.9
1.8
1.8
2.1
1.8
1.8
37,281 38,687 41,632 42,143 44,623 46,095 45,018 45,715 39,174 45,442 45,468
68.5 67.2 67.5 64.7 68.1 67.7 64.9 55.0 67.0 63.9 64.9
3.2
6.6
7.6 10.4
5.4 (0.3)
1.6
5.9
6.9
3.2
2.2
41.4 40.5 41.3 41.4 41.3 41.5 41.0 36.5 41.2 40.1 41.6
26.7 25.2 25.6 26.1 26.5 26.7 27.4 20.8 25.9 25.3 25.0
17.4 16.9 17.8 16.9 23.2 27.1 20.7 16.6 17.3 21.9 19.1
Key Operating metrics
As against an estimate of 578, the company added 431 consolidated co-
locations (v/s 744 adds in 3QFY20), taking the total count to 1,74,581. The
average sharing factor stood at 1.84 (v/s 1.85 in 3QFY20).
Gross co-location adds grew to 2,498 (v/s 1,893 in 3QFY20), with exits of 2,067
(v/s 1,149 in 3QFY20). Furthermore, 3,564 co-locations exits were reported (v/s
2,798 QoQ) for which notices were received, but actual exits are yet to happen.
Rentals per tenant (per month) declined 2% QoQ to INR42,267.
24 April 2020
2
 Motilal Oswal Financial Services
Bharti Infratel
Exhibit 1: Bharti Infratel – SOTP Valuation
Value (INR b)
Standalone (DCF based)
Indus (DCF based)
Indus value (42%)
Indus value post holdco discount of 20%
Total Enterprise value
Net Debt
Shares o/s (b)
Fair value
CMP
Upside
149
464
195
156
305
-10
1.8
315
Value (INR/sh)
81
251
84
165
-5
170
166
2%
Implied FY22 EV/Tenancy
(INR m)
1.9
1.9
1.5
1.7
Implied FY22 EV/EBITDA
(x)
4.7
6.1
4.9
4.9
1.7
5.0
Source: MOFSL, Company
Exhibit 2: BHIN – 1-year forward EV/EBITDA
EV/EBITDA (x)
Avg (x)
Min (x)
+1SD
19
15
11
7
3
9.0
4.6
Max (x)
-1SD
15.5
11.4
6.7
6.8
Source: MOFSL, Company
Management call highlights
Key Highlights
Tower addition:
Gross tower addition has doubled since last year and is at an
absolute nine-year high. Over the last few years, interest for single tenant
towers has been high, which could reduce returns. However, management is
confident that these towers would be taken by a second tenant in the near
future due to coverage needs of operators.
Rent/tower:
Due to building of single tenant towers, rent per tower has
declined for Indus while rent per tenant has increased.
Rent reduction opportunity:
BHIN is into a long-term agreement with its
landlord. However, post-COVID, management might renegotiate rentals if an
opportunity exists.
Small cell opportunity:
Small cell
would play an important role in areas with
higher footfalls areas and is expected to garner exponential demand with the
introduction of 5G. The return profile of this technology is healthy as it requires
lower capex.
Bharti Infratel-Indus merger:
Management expects the merger to get
concluded within the next two months without any further extension.
24 April 2020
3
 Motilal Oswal Financial Services
Bharti Infratel
Operational Performance
Tower addition:
Gross tower addition has doubled since last year and is at an
absolute nine-year high.
Operating cash flow (OCF) position:
Excluding Ind-AS 116, OCF declined 6%
YoY due to co-location exits in FY20 (for 4QFY20, it declined 33% YoY).
Other expense increase
: Other expenses increased due to provision for
doubtful debt of INR1.9b in 4QFY20. These provisions would unwind as soon as
the company receives payment.
Return profile:
Both RoCE (pre-tax) and RoE (post-tax) stood at ~24% for
4QFY20.
Rent/tower:
Due to building of single tenant towers, rent per tower has
declined for Indus while rent per tenant has increased.
Link between receivables and other financial assets:
Due to some
technology related issue, certain receivables were transferred to other financial
assets. Thus, receivables have declined while other financial assets have
increased in 4QFY20. When combined, both have increased by INR330m in
4QFY20 (v/s 3QFY20).
Dividend policy
Annual dividend:
The board has declared an interim dividend of INR4.1/share.
Including the previous interim dividend, the total dividend amount for FY20
stood at INR10.1/share. This dividend does not include the dividend received
from Indus. However, management is expecting dividend from Indus, which
according to the company’s policy would be passed on to shareholders.
No scope for buybacks:
With the continuous dividend disbursal by the
company, there is little scope for buybacks.
Dividend distribution policy:
The company has been distributing the
maximum possible dividend in accordance with Indian laws.
Network integration
New site addition at standstill:
Due to the outbreak of COVID-19, new site
addition has halted from the last 4-5 weeks; however, the company is focusing
on keeping the network up and running. Further, BHIN is supporting its
customers in building network capacities by means of software. Post
government approval, roll-out of new sites would continue.
BHIN has not received any official request from any player to change network
payment terms.
Tower addition objective:
BHIN is open to building tower even for a single
tenant. Management is confident that these towers would be taken by a second
tenant in the near future due to coverage needs of operators. Even with a single
tenant, the company generates returns (albeit a lower quantum).
Capex differential for single tenant tower:
Capex increases by 7-10% per
tower while building a tower for two tenants. However, the company has kept
provision for a second tenant as the differential is small; also, it is not feasible to
add provision for another tenant later. Capex for a single tower ranges between
INR0.15-0.3m.
24 April 2020
4
 Motilal Oswal Financial Services
Bharti Infratel
Divergence in tenancies between BHIN and Indus
Geographical areas:
BHIN has a larger portion of category ‘C’ circles while
Indus has a larger portion of category ‘B’ circles. Increase in capacity utilization
in cities has strengthened the tenancies of Indus. BHIN’s circles are mostly in
rural areas where new roll-outs continue. Thus, there is divergence in tenancies.
This divergence could also be attributed to exit in certain areas while growth in
other.
Redeployment:
Certain low utilization sites have been redeployed to new
geographies by telecom operators.
Merger update
Merger date extension:
The board has further extended the merger approval
date to 24
th
Jun’20 due to the current lockdown and uncertainty over the AGR
matter with both the parties having the right to terminate the merger.
Management expects the merger to be concluded within the next two months
without any further extensions.
Industry Developments
AGR verdict:
The Supreme Court
(SC) has upheld the DoT’s definition of AGR
and has ruled that telcos would have to pay the entire amount including interest
and penalty. Further, the SC has also ruled out any self-assessment of dues.
Little ray of hope:
The SC has agreed to hear the DoT’s plea on allowing telcos
to stagger the AGR payment over 20 years. Management is hoping for a positive
outcome from the hearing.
Outlook
The current pandemic due to COVID-19 outlines the significance of the telecom
industry.
Management believes that the need for a better connected nation in lieu of the
COVID-19 outbreak bodes well for the industry.
Introduction of 5G in the coming years would require infrastructure demand,
which would be beneficial for the company’s future growth.
Rent reduction opportunity:
BHIN is in a long-term agreement with its
landlord; however, management might renegotiate rentals if an opportunity
exists.
Efficiency enhancement opportunities:
Looking to enhance efficiencies
post-merger. Further, the company has been successful in reducing costs from
all cost-line items and would continue with it.
The company is deploying small cells in buildings with higher footfalls in urban
cities to provide capacity. Post-COVID, operators are expected to look for
network enhancement capacity in higher footfall areas.
Small cell opportunity:
Small cell would play an important role in areas with
higher footfalls. Demand for these would grow exponentially with introduction
of 5G. Return profile of this technology is healthy as it requires lower capex.
24 April 2020
5
 Motilal Oswal Financial Services
Bharti Infratel
Exhibit 3: Performa consolidated performance (INR m)
Consolidated Revenue
-Rent
-Energy and other reimbursements
Operating Expenses
Consolidated EBITDA
EBITDA margin (%)
Depreciation and amortization
EBIT
Net finance cost
Profit Before Taxes & Exceptional items
Exceptional item
Profit Before Taxes
Tax
Effective Tax Rate (%)
Proforma Profit After Tax
Adj. PAT
Energy/Non-energy mix
Rental EBITDA
Rental EBITDA margin (%)
Energy EBITDA
Energy EBITDA margin (%)
4QFY19
36,003
21,086
14,917
21,092
14,911
41.4
5,498
9,413
-651
10,064
0
10,064
3,988
39.6
6,076
6,076
4QFY19
13,367
64.7
1,544
10.4
3QFY20
36,028
22,128
13,900
21,264
14,764
41.0
4,908
9,856
-166
10,022
0
10,022
2,557
25.5
7,465
7,465
3QFY20
14,536
64.9
228
1.6
4QFY20
35,608
21,877
13,731
22,628
12,980
36.5
5,581
7,399
-528
7,927
0
7,927
2,021
25.5
5,906
5,906
4QFY20
12,165
55.0
815
5.9
YoY%
-1.1
3.8
-8.0
7.3
-13.0
-496bps
1.5
-21.4
-18.9
-21.2
NM
-21.2
-49.3
-1413bps
-2.8
-2.8
YoY%
-9.0
-966bps
-47.2
-442bps
QoQ%
-1.2
-1.1
-1.2
6.4
-12.1
-453bps
13.7
-24.9
218.1
-20.9
NM
-20.9
-21.0
-2bps
-20.9
-20.9
QoQ%
-16.3
-984bps
257.5
430bps
4QFY20E
36,203
22,433
13,769
21,143
15,059
41.6
6,005
9,055
-162
9,217
0
9,217
2,320
25.2
6,897
6,897
4QFY20E
14,753
64.9
307
2.2
v/s est (%)
-1.6
-2.5
-0.3
7.0
-13.8
-514bps
-7.1
-18.3
226.2
-14.0
NM
-14.0
-12.9
33bps
-14.4
-14.4
v/s est (%)
-17.5
-991bps
165.7
371bps
Source: MOFSL, Company
Exhibit 4: KPI’s performance
Revenue Drivers
Consolidated
Total Towers (nos)
Total Co-locations (nos)
Average sharing factor
Sharing revenue per operator per month (INR)
Bharti Infratel Standalone
Total Towers (nos)
Total Co-locations (nos)
Average sharing factor
Sharing revenue per operator per month (INR)
Indus Towers (100% basis)
Total Towers (nos)
Total Co-locations (nos)
Average sharing factor
Sharing revenue per operator per month (INR)
4QFY19
92,277
1,72,724
1.88
39,685
40,388
76,341
1.91
42,143
1,23,546
2,29,483
1.86
37,716
3QFY20
94,244
1,74,150
1.85
42,987
41,471
76,322
1.85
45,018
1,25,649
2,32,924
1.86
41,392
4QFY20
95,372
1,74,581
1.84
42,267
42,053
75,715
1.82
45,715
1,26,949
2,35,396
1.85
39,590
YoY%
3.4
1.1
-2.2
6.5
4.1
-0.8
-4.8
8.5
2.8
2.6
-0.2
5.0
QoQ%
1.2
0.2
-0.7
-1.7
1.4
-0.8
-1.5
1.5
1.0
1.1
-0.1
-4.4
4QFY20E
94,578
1,74,728
1.85
43,410
41,721
76,522
1.84
45,468
1,25,849
2,33,824
1.86
41,806
v/s est (%)
0.8
-0.1
-0.5
-2.6
0.8
-1.1
-0.9
0.5
0.9
0.7
-0.1
-5.3
Source: MOFSL, Company
Exhibit 5: QoQ tenancy analysis
Opening co-locations
Gross Adds
Exits
Net Add/(Deletions)
Closing co-locations
4QFY19
1,74,449
2,062
3,787
-1,725
1,72,724
3QFY20
1,73,406
1,893
1,149
744
1,74,150
4QFY20
1,74,150
2,498
2,067
431
1,74,581
YoY%
-0.2
21.1
-45.4
-125.0
1.1
QoQ%
-0.6
-8.2
-69.7
-143.1
0.8
Exhibit 6: Rental revenue/EBITDA ex-exit charges
Rental revenue
Exit penalty charges
Rental revenue (ex-exit charges)
Rental EBITDA (ex-exit charges)
EBITDA margin (%)
Sharing revenue per operator per month (INR)
4QFY19
21,086
997
20,089
12,370
61.6%
37,716
3QFY20
22,128
1,053
21,075
13,483
64.0%
41,392
4QFY20
21,877
1,073
20,804
11,092
53.3%
39,590
YoY%
3.8
7.6
3.6
-10.3
-826bps
5.0
QoQ%
-1.1
1.9
-1.3
-17.7
-1066bps
-4.4
Source: MOFSL, Company
24 April 2020
6
 Motilal Oswal Financial Services
Bharti Infratel
Exhibit 7: Summary of estimate change
FY21E
Total towers (000's)
Old
96.4
Actual/New
97.2
Change (%)
0.8
Total co-locations (000's)
Old
177.4
Actual/New
177.3
Change (%)
-0.1
Sharing revenue per operator (INR 000's/month)
Old
44.3
Actual/New
43.1
Change (%)
-2.7
EPS (INR)
Old
14.8
Actual/New
14.8
Change (%)
0.3
FY22E
98.2
99.0
0.8
180.2
180.0
-0.1
45.6
44.4
-2.6
14.3
14.4
0.3
Revenue (INR b)
Old
Actual/New
Change (%)
EBITDA (INR b)
Old
Actual/New
Change (%)
EBITDA margin (%)
Old
Actual/New
Change (%)
PAT (INR b)
Old
Actual/New
Change (%)
FY21E
148.7
127.4
-14.3
62.4
59.5
-4.7
41.9
46.7
472bps
31.5
28.8
-8.5
FY22E
155.1
130.7
-15.8
66.3
62.9
-5.2
42.7
48.1
537bps
34.5
31.1
-9.9
Exhibit 8: BHIN-Indus post-merger proforma financials (INR b)
FY18
254
Revenue from operations
156
-Rental Revenue
98
-Energy Reimbursements
Operating Expenditure
Power and fuel
Rent
Employee benefits expenses
Repair and maintenance expenses
Other expenses
Charity and donation
Total Opex
EBITDA
EBITDA margin
Depreciation
EBIT
EBIT margin
Net Finance cost/(Finance Income)
Exceptional Item
PBT
Total tax expense
Effective tax rate (%)
PAT
EPS (INR)
*Assuming cash election by Vodafone Idea and Providence
FY19*
253
145
108
99
25
8
14
6
1
153
100
39%
38
62
24%
2
-1
63
20
32%
42
23
FY20E*
250
154
96
97
24
8
13
10
1
154
95
38%
36
59
24%
-7
0
52
18
34%
35
13
FY21E*
223
157
66
62
25
8
15
9
1
120
102
46%
40
62
28%
-2
0
60
20
34%
40
15
FY22E*
228
164
64
61
26
8
16
9
1
120
108
47%
0
108
47%
0
0
108
37
34%
71
27
89
25
8
16
6
1
145
108
43%
40
69
27%
2
-1
70
23
32%
47
26
Source: MOFSL, Company
24 April 2020
7
 Motilal Oswal Financial Services
Bharti Infratel
Story in charts
Exhibit 9: Consol. revenue declined 1%; Consol. EBITDA margin shrank 450bp (INR b, %)
Consol Revenue (INR b)
Consol EBITDA margin (%)
Source: MOFSL, Company
Exhibit 10: Rental revenue declined 1.3% QoQ (INR b, %)
Rental Revenue (INR b)
Rental EBITDA margin (%)
Exhibit 11: Energy revenue declined 1.2% QoQ (INR b, %)
Energy Revenue (INR b)
Energy EBITDA margin (%)
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 12:
Tenancies stood flat QoQ
Towers (000's)
Average Sharing Factor
Co-locations (000's)
Exhibit 13: Sharing revenue/operator/month down 2% QoQ
Sharing revenue per operator per month (INR)
QoQ growth (%)
Source: MOFSL, Company
Source: MOFSL, Company
24 April 2020
8
 Motilal Oswal Financial Services
Bharti Infratel
Exhibit 14: Witnessed 1,128 tower adds QoQ
Exhibit 15: Witnessed net 0.4k tenancy adds (‘000)
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 16: BHIN – Tower portfolio break-up (000s)
Infratel Standalone
Indus (100%)
Total Towers
171 174
158 162 163 164 169
153
142 142 147 149
123 124 124 127 128 129
109 112 113 116 120
109
33
33
35
36
37
38
39
40
40
42 44
45
Exhibit 17: BHIN – Co-location break-up (000s)
Infratel Standalone Indus (100%) Total Co-locations
378 367
329 352
306 311 316 321
303
259 274 285
278
254 270 289
229 235 239 243
214 222 233
201
58
60
64
69
76
82
89
89
76
76 77
78
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 18: Average sharing factor (x)
Consolidated
2.50
2.30
2.10
1.90
1.70
1.50
1.7
1.8
2.0
1.8 1.8
1.9
1.9
2.0
2.0
2.1
2.2
Infratel Standalone (x)
Exhibit 19: Sharing revenue/operator (INR000s/month)
Consolidated (INR'000)
50.0
45.4
39.2
40.2 40.2 41.0
46.9
48.8
2.3 2.3
2.3
2.1
2.1
1.9 1.9 1.9
1.8
45.0
40.0
35.0
1.8 1.8
30.0
30.6
31.5 31.5 31.7 32.1 32.7 32.9
34.0 34.8
37.0 36.9 37.0 37.1 36.9 37.0 37.0 37.9
2.2
2.1
Source: MOFSL, Company
Source: MOFSL, Company
24 April 2020
9
 Motilal Oswal Financial Services
Bharti Infratel
Exhibit 20: Consolidated revenue growth (%)
Rental
22 21
Energy and other reimbursements
Aggregate
Exhibit 21: EBITDA margin (%)
Consolidated
Indus
Infratel Standalone
15 15
9 11 5 9 9 5 8 8 9 6 8109 6 11 8 10
3
7
18
14
0
-5
-1
-7
50
2
5 3
-2
-12
-33
40
30
20
10
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 22: Net capex intensity expected to moderate
Net Capex (INR b)
28.5
16.1 15.7
Net Capes/Sales (%)
Exhibit 23: Return ratios to improve
RoE (%)
RoCE (%)
21.7
16.2 15.6 16.0
20.2
22.1
12.4
15.5 15.8
6.7
13.4
10.8 11.2 11.6 11.0
4.0
5.3 6.3
5.7 6.6
11.4
8.6
12.7
13.2 13.7 13.2
17.2 16.3
19.1
11.1 11.2
8.6
24
15
16
13
18
19
9
19
16
16
15
14
4.4
Source: MOFSL, Company
Source: MOFSL, Company
24 April 2020
10
 Motilal Oswal Financial Services
Bharti Infratel
Exhibit 24: Bharti Infratel – A snapshot
FY14
Towers (000s)
Consolidated
YoY (%)
Net additions
-Infratel Standalone
-Indus
Co-locations (000s)
Consolidated
YoY (%)
Net additions
-Infratel Standalone
-Indus
Average sharing factor (x)
Consolidated
-Infratel Standalone
-Indus
Sharing revenue per operator (INR '000/month)
Consolidated
YoY (%)
-Infratel Standalone
-Indus
Revenue break-up (INR b)
Rental revenue
YoY (%)
-Bharti Infratel standalone
-Indus
Energy and other reimbursements
YoY (%)
-Bharti Infratel standalone
-Indus
Total revenue (INR b)
YoY (%)
-Bharti Infratel standalone
-Indus
EBITDA (INR b)
YoY (%)
EBITDA margin (%)
EBITDA per tower (INR m)
83
2
1.3
0.8
1.2
167
7
10.6
5.6
12.0
2.0
1.9
2.0
33.9
0.6
37.1
31.7
65.8
3.0
29.6
86
42.5
9.3
20.4
52.3
108
5.4
50
139
44
15.6
40.6
0.5
FY15
86
3
2.5
1.3
2.9
182
9
15.1
6.7
20.0
2.1
2.0
2.1
34.1
0.5
36.9
32.1
71.3
8.3
32.1
94
45.4
6.9
21.8
55.8
117
7.8
54
150
50
13.7
42.9
0.6
FY16
89
3
2.9
1.3
3.9
195
7
12.7
5.8
16.5
2.2
2.1
2.2
34.5
1.2
37.0
32.7
77.9
9.4
35.0
103
45.2
-0.5
20.8
59.0
123
5.7
56
162
54
8.1
43.9
0.6
FY17
91
2
1.8
0.6
2.8
211
8
15.6
7.6
18.9
2.3
2.2
2.3
34.7
0.5
37.0
32.9
84.3
8.2
38.0
110
49.9
10.4
22.9
64.8
134
8.9
61
175
59
9.0
43.9
0.7
FY18
91
1
0.8
0.4
0.9
206
-2
-5.0
-0.6
-10.5
2.3
2.3
2.3
35.6
2.8
37.9
34.0
89.5
6.2
40.4
116
55.2
10.6
25.8
71.8
145
7.9
66
187
64
8.2
44.0
0.7
FY19
92
0.9
0.8
0.9
-0.1
173
-16.0
-32.9
-12.3
-48.9
2.1
2.1
2.1
36.7
3.0
39.2
34.8
85.2
-4.8
38.8
106
60.6
9.8
29.4
78.7
146
0.6
68
185
60
-5.9
41.2
0.7
FY20E
95
3.4
3.1
1.7
3.4
175
1.1
1.9
-0.6
5.9
1.9
1.8
1.9
42.5
15.8
45.4
40.2
FY21E
97
1.9
1.8
1.5
0.8
177
1.6
2.7
1.2
3.6
1.8
1.8
1.9
43.1
1.4
46.9
40.2
FY22E
99
1.9
1.8
1.5
0.8
180
1.5
4.7
2.1
6.3
1.8
1.8
1.9
44.4
3.0
48.8
41.0
88.2
90.0
94.1
3.5
2.0
4.6
41.5
42.9
45.4
112
114
118
56.1
37.4
36.6
-7.3
-33.4
-2.3
25.3
17.0
16.9
72.3
48.5
46.8
144
127
131
-1.6
-11.2
2.6
66
60
0
184
163
165
58
59
63
-4.2
3.4
5.7
40.1
46.7
48.1
0.6
0.6
0.6
Source: Company, MOFSL
24 April 2020
11
 Motilal Oswal Financial Services
Bharti Infratel
Financials and Valuations
Consolidated - Income Statement
Y/E March
Total Income from Operations
Change (%)
Power and fuel
Rent
Employee benefits expenses
Other Expenses
Total Expenditure
% of Sales
EBITDA
Margin (%)
Depreciation
EBIT
Int. and Finance Charges
Other Income
PBT bef. EO Exp.
EO Items
PBT after EO Exp.
Total Tax
Tax Rate (%)
Minority Interest
Reported PAT
Adjusted PAT
Change (%)
Margin (%)
FY14
1,08,267
5.4
40,612
8,886
3,670
11,098
64,266
59.4
44,001
40.6
21,259
22,742
3,997
4,487
23,232
0
23,232
8,053
34.7
0
15,179
15,179
51.6
14.0
FY15
1,16,683
7.8
41,950
9,460
3,997
11,235
66,642
57.1
50,041
42.9
21,847
28,194
2,902
5,223
30,515
0
30,515
10,591
34.7
0
19,924
19,924
31.3
17.1
FY16
1,23,314
5.7
42,598
10,322
4,279
12,006
69,205
56.1
54,109
43.9
22,235
31,874
-1,847
2,048
35,769
0
35,769
13,293
37.2
0
22,476
22,476
12.8
18.2
FY17
1,34,237
8.9
46,533
11,628
4,679
12,428
75,268
56.1
58,969
43.9
22,626
36,343
-4,414
1,455
42,212
0
42,212
14,742
34.9
0
27,470
27,470
22.2
20.5
FY18
1,44,896
7.9
50,772
12,615
5,002
12,706
81,095
56.0
63,801
44.0
23,462
40,339
0
2,423
42,762
-500
42,262
17,325
41.0
0
24,937
25,232
-8.1
17.4
FY19
1,45,823
0.6
56,384
12,551
4,914
11,962
85,811
58.8
60,012
41.2
22,239
37,773
-1,571
2,034
41,378
-357
41,021
16,083
39.2
0
24,938
25,155
-0.3
17.3
FY20
1,43,545
-1.6
54,360
13,060
5,001
13,611
86,032
59.9
57,513
40.1
21,163
36,350
159
1,912
38,103
0
38,103
6,664
17.5
0
31,439
31,439
25.0
21.9
(INR Million)
FY21E
1,27,432
-11.2
35,555
13,626
5,341
13,444
67,967
53.3
59,466
46.7
22,719
36,747
159
1,912
38,500
0
38,500
9,690
25.2
0
28,809
28,809
-8.4
22.6
FY22E
1,30,685
2.6
34,709
13,750
5,445
13,930
67,833
51.9
62,852
48.1
23,087
39,765
159
1,912
41,518
0
41,518
10,450
25.2
0
31,068
31,068
7.8
23.8
Consolidated - Balance
Sheet
Y/E March
Equity Share Capital
Total Reserves
Net Worth
Total Loans
Deferred Tax Liabilities
Capital Employed
Net Fixed Assets
Capital WIP
Total Investments
Curr. Assets, Loans&Adv.
Account Receivables
Cash and Bank Balance
Loans and Advances
Curr. Liability & Prov.
Account Payables
Other Current Liabilities
Provisions
Net Current Assets
Appl. of Funds
E: MOFSL Estimates
FY14
18,893
1,61,489
1,80,382
26,836
11,249
2,18,467
1,53,205
1,527
74,803
56,821
3,075
1,655
52,091
67,889
1,894
45,422
20,573
-11,068
2,18,467
FY15
18,938
1,51,262
1,70,200
17,131
12,247
1,99,578
1,48,121
2,260
58,822
62,344
3,532
9,120
49,692
71,969
1,342
43,694
26,933
-9,625
1,99,578
FY16
18,967
1,64,512
1,83,479
10,767
12,249
2,06,495
1,44,868
2,245
38,811
83,265
1,916
31,916
49,433
62,694
959
41,139
20,596
20,571
2,06,495
FY17
18,496
1,36,369
1,54,865
22,249
7,150
1,84,264
1,36,326
2,568
56,211
53,350
3,664
22,970
26,716
64,191
17,387
40,699
6,105
-10,841
1,84,264
FY18
18,496
1,51,048
1,69,544
22,402
6,223
1,98,169
1,30,740
4,066
67,850
37,207
9,185
759
27,263
41,694
18,580
16,448
6,666
-4,487
1,98,169
FY19
18,496
1,26,749
1,45,245
29,242
6,153
1,80,640
1,25,871
2,485
47,973
46,167
14,883
1,371
29,913
41,856
20,991
13,547
7,318
4,311
1,80,640
FY20
18,496
1,25,908
1,44,404
47,150
2,516
1,94,070
1,21,655
1,546
54,383
57,104
20,683
2,039
34,382
40,618
18,430
14,097
8,091
16,486
1,94,070
(INR Million)
FY21E
18,496
1,22,534
1,41,030
22,966
2,516
1,66,512
1,13,756
1,546
54,383
32,866
19,669
-19,805
33,001
36,039
16,863
11,108
8,067
-3,173
1,66,512
FY22E
18,496
1,21,419
1,39,915
22,966
2,516
1,65,397
1,05,020
1,546
54,383
41,202
19,971
-12,097
33,328
36,754
17,235
11,445
8,075
4,448
1,65,397
24 April 2020
12
 Motilal Oswal Financial Services
Bharti Infratel
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 (%)
FCF per share
Return Ratios (%)
RoE
RoCE
RoIC
Working Capital Ratios
Fixed Asset Turnover (x)
Asset Turnover (x)
Inventory (Days)
Debtor (Days)
Creditor (Days)
Leverage Ratio (x)
Current Ratio
Interest Cover Ratio
Net Debt/Equity
FY14
8.0
19.3
95.5
4.4
63.5
FY15
10.5
22.1
89.9
11.0
121.0
14.5
6.9
1.7
2.0
4.8
7.2
11.5
11.4
11.1
13.6
0.8
0.6
0
11
4
0.9
9.7
-0.3
FY16
11.8
23.6
96.7
3.0
29.2
12.9
6.5
1.6
1.9
4.2
2.0
12.9
12.7
11.2
15.2
0.9
0.6
0
6
3
1.3
-17.3
-0.3
FY17
14.9
27.1
83.7
16.0
125.0
10.3
5.6
1.8
1.7
3.8
10.5
10.6
16.2
13.2
20.0
1.0
0.7
0
10
47
0.8
-8.2
-0.4
FY18
13.6
26.3
91.7
14.0
120.5
11.2
5.8
1.7
1.6
3.7
9.2
9.1
15.6
13.7
20.9
1.1
0.7
0
23
47
0.9
NA
-0.3
FY19
13.6
25.6
78.5
15.0
129.1
11.2
6.0
1.9
1.8
4.4
9.8
1.3
16.0
13.2
18.1
1.2
0.8
0
37
53
1.1
-24.0
-0.1
FY20
17.0
28.4
78.1
10.1
68.9
9.0
5.4
2.0
1.9
4.8
6.6
3.6
21.7
17.2
22.6
1.2
0.7
0
53
47
1.4
228.6
-0.1
FY21E
15.6
27.9
76.2
15.0
111.7
9.8
5.5
2.0
2.1
4.6
9.8
18.8
20.2
16.3
20.6
1.1
0.8
0
56
48
0.9
231.1
-0.1
FY22E
16.8
29.3
75.6
15.0
103.6
9.1
5.2
2.0
2.0
4.2
9.8
21.7
22.1
19.1
23.6
1.2
0.8
0
56
48
1.1
250.1
-0.1
2.9
13.8
8.6
8.6
9.6
0.7
0.5
0
10
6
0.8
5.7
-0.3
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
FY14
23,232
21,259
3,864
-4,345
1,160
45,170
-5,646
39,524
-13,389
26,135
-35,977
25,904
-23,462
57
-4,254
-3,805
-7,003
0
-15005
1,057
598
3,009
FY15
30,515
21,847
2,946
-8,420
-1,655
45,233
-5,338
39,895
-18,144
21,751
17,588
17
-539
490
-7,601
-3,010
-21,755
0
-31876
7,480
1,640
7,982
FY16
36,207
22,693
2,181
-11,547
630
50,164
-6,218
43,946
-19,433
24,513
25,887
7,504
13,958
338
-8,755
-2,180
-15,676
0
-26273
31,631
285
31,916
FY17
35,797
11,657
365
-7,961
-1,017
38,841
-10,179
28,662
-9,060
19,602
8,913
970
823
-19,969
0
0
-6,679
0
-26,648
2,837
20,133
22,970
FY18
42,262
23,462
0
-17,325
-28,565
19,834
16,430
36,264
-19,374
16,890
-11,639
5,680
-25,333
0
154
0
-30,038
0
-29,885
-18,954
19,713
759
FY19
41,021
22,239
-1,571
-16,083
-8,186
37,420
-19,158
18,262
-15,789
2,473
19,877
5,291
9,379
0
6,840
1,571
-32,183
0
-23,772
3,869
-2,498
1,371
FY20
38,103
21,163
159
-6,664
-11,507
41,254
-18,675
22,579
-16,008
6,571
-6,410
7,685
-14,733
0
17,908
-159
-21,670
0
-3,921
3,925
-1,886
2,039
(INR Million)
FY21E
38,500
22,719
159
-9,690
-2,185
49,503
0
49,503
-14,820
34,682
0
3,257
-11,563
0
-24,184
-159
-32,183
0
-56,526
-18,587
-1,218
-19,805
FY22E
41,518
23,087
159
-10,450
87
54,400
0
54,400
-14,350
40,050
0
3,257
-11,093
0
0
-159
-32,183
0
-32,342
10,965
-23,062
-12,097
24 April 2020
13
 Motilal Oswal Financial Services
Bharti Infratel
NOTES
24 April 2020
14
 Motilal Oswal Financial Services
Bharti Infratel
Explanation of Investment Rating
Investment Rating
Expected return (over 12-month)
BUY
>=15%
SELL
< - 10%
NEUTRAL
< - 10 % to 15%
UNDER REVIEW
Rating may undergo a change
NOT RATED
We have forward looking estimates for the stock but we refrain from assigning recommendation
*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall within
following 30 days take appropriate measures to make the recommendation consistent with the investment rating legend.
Disclosures
The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).
Motilal Oswal Financial Services Ltd. (MOFSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOFSL, the Research Entity (RE) as defined in the
Regulations, is engaged in the business of providing Stock broking services, Investment Advisory Services, Depository participant services & distribution of various financial products.
MOFSL is a subsidiary company of Passionate Investment Management Pvt. Ltd.. (PIMPL). MOFSL is a listed public company, the details in respect of which are available on
www.motilaloswal.com. MOFSL (erstwhile Motilal Oswal Securities Limited - MOSL) is registered with the Securities & Exchange Board of India (SEBI) and is a registered Trading
Member with National Stock Exchange of India Ltd. (NSE) and Bombay Stock Exchange Limited (BSE), Multi Commodity Exchange of India Limited (MCX) and National Commodity
& Derivatives Exchange Limited (NCDEX) for its stock broking activities & is Depository participant with Central Depository Services Limited (CDSL) National Securities Depository
Limited (NSDL),NERL, COMRIS and CCRL and is member of Association of Mutual Funds of India (AMFI) for distribution of financial products and Insurance Regulatory &
Development Authority of India (IRDA) as Corporate Agent for insurance products.
Details of associate entities of Motilal Oswal Financial Services Limited are available on the
website at
http://onlinereports.motilaloswal.com/Dormant/documents/List%20of%20Associate%20companies.pdf
MOFSL and its associate company(ies), their directors and Research Analyst and their relatives may; (a) from time to time, have a long or short position in, act as principal in, and
buy or sell the securities or derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other
compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have
any other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the
specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even
though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report
MOFSL and / or its affiliates do and seek to do business including investment banking with companies covered in its research reports. As a result, the recipients of this report should
be aware that MOFSL may have a potential conflict of interest that may affect the objectivity of this report. Compensation of Research Analysts is not based on any specific merchant
banking, investment banking or brokerage service transactions. Details of pending Enquiry Proceedings of Motilal Oswal Financial Services Limited are available on the website at
https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx
A graph of daily closing prices of securities is available at
www.nseindia.com, www.bseindia.com.
Research Analyst views on Subject Company may vary based on Fundamental
research and Technical Research. Proprietary trading desk of MOFSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated from
MOFSL research activity and therefore it can have an independent view with regards to Subject Company for which Research Team have expressed their views.
Regional Disclosures (outside India)
This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability or
use would be contrary to law, regulation or which would subject MOFSL & its group companies to registration or licensing requirements within such jurisdictions.
For Hong Kong:
This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong Kong
Securities and Futures Commission (SFC) pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst
Regulations) 2014 Motilal Oswal Securities (SEBI Reg No. INH000000412) has an agreement with Motilal Oswal capital Markets (Hong Kong) Private Limited for distribution of
research report in Hong Kong. This report is intended for distribution only to “Professional Investors” as defined in Part I of Schedule 1 to SFO. Any investment or investment activity
to which this document relates is only available to professional investor and will be engaged only with professional investors.” Nothing here is an offer or solicitation of these
securities, products and services in any jurisdiction where their offer or sale is not qualified or exempt from registration. The Indian Analyst(s) who compile this report is/are not
located in Hong Kong & are not conducting Research Analysis in Hong Kong.
For U.S.
Motilal Oswal Financial Services Limited (MOFSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under
applicable state laws in the United States. In addition MOFSL is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act"
and together with the 1934 Act, the "Acts), and under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any brokerage and
investment services provided by MOFSL , including the products and services described herein are not available to or intended for U.S. persons. This report is intended for
distribution only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the Exchange Act and interpretations thereof by SEC (henceforth referred to as "major institutional
investors"). This document must not be acted on or relied on by persons who are not major institutional investors. Any investment or investment activity to which this document
relates is only available to major institutional investors and will be engaged in only with major institutional investors. In reliance on the exemption from registration provided by Rule
15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") and interpretations thereof by the U.S. Securities and Exchange Commission ("SEC") in order
to conduct business with Institutional Investors based in the U.S., MOFSL has entered into a chaperoning agreement with a U.S. registered broker-dealer, Motilal Oswal Securities
International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be executed within the provisions of this chaperoning agreement.
The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S.
registered broker-dealer, MOSIPL, and therefore, may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public
appearances and trading securities held by a research analyst account.
For Singapore
In Singapore, this report is being distributed by Motilal Oswal Capital Markets Singapore Pte Ltd (“MOCMSPL”) (Co.Reg. NO. 201129401Z) which is a holder of a capital markets
services license and an exempt financial adviser in Singapore.As per the approved agreement under Paragraph 9 of Third Schedule of Securities and Futures Act (CAP 289) and
Paragraph 11 of First Schedule of Financial Advisors Act (CAP 110) provided to MOCMSPL by Monetary Authority of Singapore. Persons in Singapore should contact MOCMSPL in
respect of any matter arising from, or in connection with this report/publication/communication. This report is distributed solely to persons who qualify as “Institutional Investors”, of
which some of whom may consist of "accredited" institutional investors as defined in section 4A(1) of the Securities and Futures Act, Chapter 289 of Singapore (“the
SFA”). Accordingly, if a Singapore person is not or ceases to be such an institutional investor, such Singapore Person must immediately discontinue any use of this Report and
inform MOCMSPL.
Specific Disclosures
1 MOFSL, Research Analyst and/or his relatives does not have financial interest in the subject company, as they do not have equity holdings in the subject company.
2 MOFSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company
3 MOFSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months
4 MOFSL, Research Analyst and/or his relatives do not have material conflict of interest in the subject company at the time of publication of research report
5 Research Analyst has not served as director/officer/employee in the subject company
6 MOFSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
7 MOFSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months
8 MOFSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months
9 MOFSL has not received any compensation or other benefits from third party in connection with the research report
10 MOFSL has not engaged in market making activity for the subject company
********************************************************************************************************************************
24 April 2020
15
 Motilal Oswal Financial Services
Bharti Infratel
The associates of MOFSL may have:
-
financial interest in the subject company
-
actual/beneficial ownership of 1% or more securities in the subject company
-
received compensation/other benefits from the subject company in the past 12 months
-
other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the
specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even
though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report.
-
acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
-
be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the
company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies)
-
received compensation from the subject company in the past 12 months for investment banking / merchant banking / brokerage services or from other than said services.
The associates of MOFSL has not received any compensation or other benefits from third party in connection with the research report
Above disclosures include beneficial holdings lying in demat account of MOFSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not
consider demat accounts which are opened in name of MOFSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOFSL also earns DP income from
clients which are not considered in above disclosures.
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the
research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.
Terms & Conditions:
This report has been prepared by MOFSL and is meant for sole use by the recipient and not for circulation. The report and information contained herein is strictly confidential and
may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of
MOFSL. The report is based on the facts, figures and information that are considered true, correct, reliable and accurate. The intent of this report is not recommendatory in nature.
The information is obtained from publicly available media or other sources believed to be reliable. Such information has not been independently verified and no guaranty,
representation of warranty, express or implied, is made as to its accuracy, completeness or correctness. All such information and opinions are subject to change without notice. The
report is prepared solely for informational purpose and does not constitute an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial
instruments for the clients. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. MOFSL will not treat recipients as
customers by virtue of their receiving this report.
Disclaimer:
The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed,
in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent. This report and information herein is solely for informational purpose
and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Nothing in this report
constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances. The securities
discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment objectives,
financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient. Each recipient of this document
should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this document (including
the merits and risks involved), and should consult its own advisors to determine the merits and risks of such an investment. The investment discussed or views expressed may not be
suitable for all investors. Certain transactions -including those involving futures, options, another derivative products as well as non-investment grade securities - involve substantial
risk and are not suitable for all investors. No representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of the information and opinions
contained in this document. The Disclosures of Interest Statement incorporated in this document is provided solely to enhance the transparency and should not be treated as
endorsement of the views expressed in the report. This information is subject to change without any prior notice. The Company reserves the right to make modifications and
alternations to this statement as may be required from time to time without any prior approval. MOFSL, its associates, their directors and the employees may from time to time, effect
or have effected an own account transaction in, or deal as principal or agent in or for the securities mentioned in this document. They may perform or seek to perform investment
banking or other services for, or solicit investment banking or other business from, any company referred to in this report. Each of these entities functions as a separate, distinct and
independent of each other. The recipient should take this into account before interpreting the document. This report has been prepared on the basis of information that is already
available in publicly accessible media or developed through analysis of MOFSL. The views expressed are those of the analyst, and the Company may or may not subscribe to all the
views expressed therein. This document is being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other
person or published, copied, in whole or in part, for any purpose. This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of
or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject
MOFSL to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category
of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction. Neither the Firm, not its directors,
employees, agents or representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost revenue or lost profits that may
arise from or in connection with the use of the information.
The person accessing this information specifically agrees to exempt MOFSL or any of its affiliates or employees from, any
and all responsibility/liability arising from such misuse and agrees not to hold MOFSL or any of its affiliates or employees responsible for any such misuse and further agrees to hold
MOFSL or any of its affiliates or employees free and harmless from all losses, costs, damages,
expenses that may be suffered by the person accessing this information due to any
errors and delays.
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 71934200/ 022-71934263; Website
www.motilaloswal.com.CIN
no.: L67190MH2005PLC153397.Correspondence Office Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road,
Malad(West), Mumbai- 400 064. Tel No: 022 7188 1000.
Registration Nos.: Motilal Oswal Financial Services Limited (MOFSL)*: INZ000158836(BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst:
INH000000412. AMFI: ARN - 146822; Investment Adviser: INA000007100; Insurance Corporate Agent: CA0579;PMS:INP000006712. Motilal Oswal Asset Management Company
Ltd. (MOAMC): PMS (Registration No.: INP000000670); PMS and Mutual Funds are offered through MOAMC which is group company of MOFSL. Motilal Oswal Wealth Management
Ltd. (MOWML): PMS (Registration No.: INP000004409) is offered through MOWML, which is a group company of MOFSL. Motilal Oswal Financial Services Limited is a distributor of
Mutual Funds, PMS, Fixed Deposit, Bond, NCDs,Insurance Products and IPOs.Real Estate is offered through Motilal Oswal Real Estate Investment Advisors II Pvt. Ltd. which is a
group company of MOFSL. Private Equity is offered through Motilal Oswal Private Equity Investment Advisors Pvt. Ltd which is a group company of MOFSL. Research & Advisory
services is backed by proper research. Please read the Risk Disclosure Document prescribed by the Stock Exchanges carefully before investing. There is no assurance or guarantee
of the returns. Investment in securities market is subject to market risk, read all the related documents carefully before investing. Details of Compliance Officer: Name: Neeraj
Agarwal, Email ID: na@motilaloswal.com, Contact No.:022-71881085.
* MOSL has been amalgamated with Motilal Oswal Financial Services Limited (MOFSL) w.e.f August 21, 2018 pursuant to order dated July 30, 2018 issued by Hon'ble National
Company Law Tribunal, Mumbai Bench.
24 April 2020
16