Idea Cellular: Merger to conclude sooner than anticipated

Idea Cellular

BSE SENSEX

31,795

S&P CNX

9,904

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18 August 2017

Update | Sector: Telecom

CMP: INR89

TP: INR110(+20%)

Merger to conclude sooner than anticipated

Risk of market share dilution reduced; synergies not fully factored



Buy



Stock Info

Bloomberg

Equity Shares (m)

52-Week Range (INR)

1, 6, 12 Rel. Per (%)

M.Cap. (INR b)

M.Cap. (USD b)

Avg Val, INRm

Free float (%)

IDEA IN

3,607

124 / 66

1/-27/-18

310.9

4.8

1736

57.6



The

Vodafone-Idea merger is likely to conclude by the end of FY18, much ahead of

the earlier expectation of mid-FY19. This should reduce the risk of market share

dilution; we had assumed cumulative market share dilution of 150-200bp over the

next 2-3 years.

Our channel checks with network vendors indicate that master rollout plans

including network restructuring and fresh investments should kick off soon. We

expect the combined entity’s EBITDA margin to expand from the current 23-25% to

32% by FY20 and 36% by FY21. This is still lower than Bharti’s 40% margin in FY16-17.

We expect a revenue recovery from 3QFY18, by when ARPU downtrading should be

largely complete, and GST impact and seasonal weakness would have passed. RJio’s

VoLTE feature phone launch at current pricing is unlikely to be disruptive and

interconnect usage charge (IUC) limits freebies. However, IUC reduction remains a

key risk to ARPU stability.

Our pro forma workings for the merged entity imply EV/EBITDA of 8x (FY19E).

Potential synergy gains could imply EV/EBITDA of 6.2x (FY20E) and 5.2x (FY21E). This

is factoring 36% margin v/s Bharti’s 40% EBITDA margin in FY16-17. We reiterate our

Buy rating, with a target price of INR110.



Financials Snapshot (INR b)

Y/E Mar

2017 2018E 2019E

Net Sales

355.8 346.8 368.7

EBITDA

102.8

84.2

95.0

-4.0

-39.3 -40.8

EPS (INR)

-1.1

-10.9 -11.3

EPS Gr. (%)

-116.2 884.1

3.6

BV/Sh. (INR)

68.6

57.7

46.4

RoE (%)

-1.6

-17.3 -21.7

RoCE (%)

1.5

-0.3

0.3

P/E (x)

-77.9

-7.9

-7.6

P/BV (x)

1.3

1.5

1.9

Shareholding pattern (%)

As On

Jun-17 Mar-17 Jun-16

Promoter

42.4

42.2

DII

8.8

6.8

6.5

FII

25.9

27.0

25.7

Others

22.9

23.8

25.6

FII Includes depository receipts

Stock Performance (1-year)

Idea Cellular

Sensex - Rebased

120

105

Vodafone-Idea merger on fast track; to reduce risk of market share dilution

The

Vodafone-Idea merger is likely to conclude by the end of FY18, much ahead of

the earlier expectation of mid-FY19. Post approval from CCI (Competition

Commission of India) and conditional approval from SEBI, the companies have filed

the scheme of merger with NCLT (National Company Law Tribunal). After NCLT

approval, the merged entity (Vodafone-Idea) will seek DOT approval, subject to

spectrum liberalization payments and past penalties that are under litigation. We

believe the combined entity will be in a better position to compete with RJio. This

should reduce the risk of market share dilution; we had assumed cumulative

market share dilution of 150-200bp over the next 2-3 years.

Synergies significant; EBITDA margin could expand by 10pp

We believe the merged entity could see EBITDA margin expansion of 10pp. This is

based on two factors: First, at 23-25%, the current EBITDA margins of Idea and

Vodafone are significantly lower than Idea’s 33-34% in FY15-16. Once the

competitive intensity eases, margins should claw back towards previous levels.

Second, with ~40% revenue market share, the combined entity should get scale

benefits benchmarked to Bharti’s 40% margin profile until FY17. This translates

into a significant 10-15pp margin improvement potential. Our workings factor

market recovery in FY19, with 7% revenue growth and 200bp margin improvement

potential for the merged entity. The management has highlighted ~INR84b synergy

gains in the fourth year of operation. We estimate EBITDA margin of 32% in FY20

and 36% in FY21 for the merged entity, with an upward bias, given Bharti’s 40%

EBITDA margin in FY16-17.

Aliasgar Shakir - Research analyst

(Aliasgar.Shakir@motilaloswal.com); +91 22 3982 5423

Hafeez Patel - Research analyst

Hafeez.Patel@motilaloswal.com); +91 22 3010 2611

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.

Idea Cellular

Our discussions with network vendors indicate that in the first year, the merger may

be neutral from the synergies point of view – the synergy gains could be offset by

vendor settlements and restructuring cost. Network integration gains should start

from the second year, and progressively improve over the next 2-3 years, scaling

above peers, as 20% site rationalization happens. Our channel checks with vendors

indicate that master rollout plans including network restructuring and fresh

investments should kick off soon, potentially raising our synergy gain estimates.

Market should bottom in 2-3 quarters

We understand that the impact of ARPU downtrading is not completely captured in

1QFY18; there could be a spillover to 2QFY18, keeping competitive intensity high.

Further, a seasonally weak Q2 coupled with absorption of GST cost should impact

revenue. By 3QFY18, (a) ARPU downtrading should be largely complete, and (b) GST

impact and seasonal weakness would have passed; recovery should start for the

smartphone category.

VoLTE feature phone launch unlikely to be disruptive

RJio’s VoLTE feature phone launch at INR1,500 device price and INR153/month

service plan is unlikely to be disruptive, considering the current sub-INR100 ARPU

for feature phone subscribers. The digital content provided by RJio is also available

with all the incumbents. Idea is exploring options to reduce smartphone pricing

without any bundling, but does not plan to launch VoLTE feature phones, given its

weak consumer experience. It plans VoLTE service launch selectively from 4QFY18 in

places where it already has LTE network operational, and will gradually expand.

We believe VoLTE feature phones would appeal to each bucket of subscribers

differently.



Smartphone users:

Smartphone users may not find VoLTE feature phones

compelling, given that feature phones are relatively bare.



Voice-only feature phone users:

At sub-INR100 ARPU, incumbents can match

RJio’s offering with plans offering unlimited voice at INR150/month. This should

allow ARPU accretion. IUC may not be significant for incumbents due to 45-55%

on-net voice usage, which should curtail overall cost.



Low-hanging potential data subscribers:

Low-hanging potential data

subscribers using feature phones may find it attractive to use data at

INR153/month, paying INR50-60 higher than current ARPU. Idea is exploring

means to make available low-cost smartphones (without bundling) against RJio’s

INR1,500 handset. We believe RJio’s VoLTE feature phone’s (a) three-year lock-

in, (b) small screen size (2.5 inches v/s at least 4 inches for smartphones) and (c)

low data handling capability could worsen consumer experience.

IUC – the biggest risk

Our workings and channel checks indicate MOU of 650-700 for unlimited voice

plans, 1.7x the average MOU of incumbents pre RJio launch. Assuming 90% off-net

outgoing traffic, IUC/subscriber works out to be INR85-90/month. Thus, IUC cost

limits freebies for a prolonged period. However, a reduction in IUC remains a key

risk to the stability of industry ARPU.

Valuation – merger synergies not captured adequately

The stock appears expensive at an EV/EBITDA of 9x (FY19E), excluding Vodafone

numbers. However, our pro forma workings for the merged entity imply EV/EBITDA

of 8x (FY19E), and potential synergy gains from FY20 onwards could imply

EV/EBITDA of 6.2x (FY20E) and 5.2x (FY21E). This is despite building EBITDA margin

of 36%, lower than Bharti’s 40% EBITDA margin in FY16-17. We reiterate our

Buy

rating, with a target price of INR110.

18 August 2017

Idea Cellular

Story in charts

Exhibit 1: Idea: Subscriber and gross rev market share (%)

Subscriber market share (%)

Gross revenue market share (%)

Exhibit 2: Idea: ARPU and RPM trajectory

Monthly ARPU

Mobile RPM (p)

Voice RPM (p)

48 47

44 45 45 44 45 46 46 45 44 45 44 46

37 38 38 37 37 36 36 34

33 32 32 33 34 33

35 32

26 24

Source: Company, MOSL

Exhibit 3: Voice traffic and QoQ growth

Voice traffic (b minutes)

8.6

2.8

-5.8

4.1

5.2

5.1

8.4

5.8

5.1

1.2

-1.7

-3.2

-1.1

-1.9

QoQ growth

7.3

8.4

Exhibit 4: Monthly churn (%)

Monthly churn (%)

Source: Company, MOSL

Exhibit 5: Data revenue (% of total)

Data revenue (% of total)

Exhibit 6: 3G subscriber base ramp-up

3G subscribers (m)

3G subs (% of total)

Source: Company, MOSL

18 August 2017

Idea Cellular

Story in charts

Exhibit 1: Data traffic and QoQ growth

Data traffic (b MB)

QoQ growth

Exhibit 2: Data revenue per MB (p)

Data revenue per MB (p)

Source: Company, MOSL

Exhibit 3: Reported consolidated EBITDA margin (%)

Reported consolidated EBITDA margin (%)

36 34 35 35 38

33 33 34

33 31

32 31 31 32

Exhibit 4: EBITDA per minute (p)

EBITDA per minute (p)

25 26 23

Source: Company, MOSL

Exhibit 5: Net debt and net debt/EBITDA

Net debt (INR b)

Net debt/EBITDA (x)

Exhibit 6: 2G cell site additions

2G cell site additions

Source: Company, MOSL

18 August 2017

Idea Cellular

Exhibit 7: Key Operating Metrics (YoY)

Subscribers (m)

YoY%

Average subscribers (m)

YoY%

Data subscribers (m)

YoY%

Average Rev Per User (INR/month)

YoY%

Minutes of Use/Sub/Month

YoY%

Data usage/data sub/month (mb)

YoY%

Voice traffic (m min)

YoY%

Data traffic (m MB)

YoY%

Voice revenue per min (p)

YoY%

Data revenue per MB (p)

YoY%

Voice revenue (INR m)

YoY%

Data revenue (INR m)

YoY%

Data revenue as % of total revenue

Non Data VAS revenue (INR m)

Capex (INRm)

Capex / Sales (%)

FY13

122

117

158

378

119

531534

37380

35.4

32.3

188382

12059

5.4

21038

57145

25.8

FY14

136

12%

129

10%

-4%

169

381

257

116%

588272

11%

79382

112%

37.2

29.1

-10%

218808

16%

23105

92%

8.9

19082

44388

17.0

FY15

158

16%

147

14%

32%

177

388

490

91%

684216

16%

172531

117%

35.6

-4%

26.3

-10%

243676

11%

45404

97%

14.6

22232

43222

13.9

FY16

175

11%

166

13%

32%

177

394

641

31%

787075

15%

297920

73%

32.4

-9%

23.2

-12%

255135

69163

52%

19.6

29148

378140

107.0

FY17

190

182

10%

-4%

159

-10%

383

-3%

843

32%

837449

436423

46%

30.2

-7%

16.4

-29%

252601

-1%

71654

20.5

24498

177290

50.8

FY18E

197

193

14%

145

-9%

448

17%

2374

181%

1041008

24%

1285493

195%

24.1

-20%

5.1

-69%

250648

-1%

65955

-8%

19.6

19743

65000

19.3

FY19E

205

201

30%

148

444

-1%

3210

35%

1070099

2131529

66%

22.7

-6%

4.6

-11%

243235

-3%

97013

47%

27.1

17478

65000

18.2

Source: MOSL, Company

Exhibit 8: Valuation Summary

Consol EBITDA

Less Net debt

Total Value

Shares o/s (b)

CMP (INR)

Upside (%)

Methodology

FY19 EV/EBITDA

Driver

Multiple

9.5

Fair Value (INRb)

907

511

396

3.6

Value/sh (INR)

252

142

110

Source: MOSL, Company

18 August 2017

Idea Cellular

Exhibit 9: Combined spectrum holding & market share

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

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

800

900

1800

2100

2300

2500

Total

0.0%

45.0%

32.7% 12.5%

0.0% 50.0%*

18.8%

0.0%

49.5%

26.6% 25.0%

0.0% 50.0%*

20.3%

0.0%

34.7%

28.4% 25.0%

0.0% 50.0%*

19.3%

0.0%

69.3%** 21.0% 37.5% 10.0% 75.0%**

29.6%

0.0%

64.0%** 34.9% 25.0%

0.0% 75.0%**

26.2%

0.0%

24.8%

23.4% 12.5%

0.0%

25.0%

12.9%

0.0%

25.0%

34.8% 12.5%

0.0%

11.6%

0.0%

22.5%

28.1% 37.5%

0.0%

13.5%

0.0%

66.7%** 36.6% 25.0% 11.1% 50.0%**

27.4%

0.0%

25.7%

38.8% 25.0%

0.0%

25.0%

19.4%

0.0%

66.3%** 26.5% 37.5%

0.0% 50.0%*

25.4%

0.0%

64.4%** 24.2% 25.0%

0.0% 50.0%*

23.0%

0.0%

31.1%

26.4% 50.0%* 0.0% 50.0%*

25.8%

0.0%

34.4%

29.1% 37.5%

0.0% 50.0%*

24.5%

0.0%

39.8%

31.2% 12.5% 12.5% 50.0%

24.3%

0.0%

34.0%

43.7% 12.5%

0.0% 50.0%*

21.4%

0.0%

28.6% 11.1%

0.0%

25.0%

12.2%

0.0%

29.7% 11.1%

0.0%

25.0%

13.0%

0.0%

26.9%

32.2% 11.1%

0.0% 50.0%*

18.2%

0.0%

47.5% 12.5%

0.0% 50.0%*

19.7%

0.0%

47.9% 12.5%

0.0% 50.0%*

20.0%

0.0%

32.2% 12.5%

0.0%

25.0%

14.5%

0.0%

33.1%

31.9% 21.8%

1.6%

42.0% 20.1%

Source: MOSL, Company

*Circle-wise combined share is 50%; ** Circle-wise combined share exceeds 50%

Exhibit 10: Revenue & VLR subscriber Market share

Circle

Assam

Bihar

Delhi

Gujarat

Haryana

J&K

Karnataka

Kerala

Kolkata

Maharashtra

Mumbai

North East

Orissa

Punjab

Rajasthan

Tamil Nadu

UP East

UP West

West Bengal

Revenue market share (Q4FY17)

Vodafone

Idea

Combine

10.1%

24.3%

34.3%

22.5%

5.4%

27.9%

14.2%

14.4%

28.6%

31.2%

11.8%

43.0%

38.8%

22.6%

61.4%*

10.0%

12.1%

22.0%

33.1%

30.5%

63.6%*

5.5%

3.8%

9.3%

16.8%

12.8%

29.6%

24.1%

38.5%

62.5%*

33.2%

7.9%

41.1%

10.4%

46.1%

56.5%*

25.1%

33.1%

58.2%*

35.1%

10.2%

45.3%

16.4%

3.7%

20.1%

16.7%

5.8%

22.5%

17.4%

26.8%

44.2%

21.9%

12.7%

34.6%

23.1%

5.9%

29.0%

29.2%

13.7%

43.0%

25.3%

34.1%

59.3%*

32.9%

8.4%

41.3%

23.5%

18.6%

42.1%

VLR Subscriber market share (Q4FY17)

Vodafone

Idea

Combine

8.0%

23.8%

31.8%

21.3%

7.1%

28.4%

13.9%

17.1%

30.9%

23.5%

14.8%

38.3%

29.7%

21.6%

51.3%*

7.8%

11.2%

19.1%

25.8%

23.8%

49.6%

9.1%

7.5%

16.6%

12.0%

15.6%

27.5%

20.4%

32.2%

52.6%*

23.5%

9.6%

33.1%

8.5%

39.1%

47.5%

21.6%

31.4%

53.0%*

26.4%

13.2%

39.6%

14.6%

5.9%

20.5%

16.7%

7.5%

24.2%

15.7%

23.0%

38.7%

19.5%

14.6%

34.1%

21.3%

8.4%

29.7%

21.5%

14.1%

35.7%

20.7%

28.2%

48.9%

38.8%

13.0%

51.8%*

19.5%

39.0%

Source: MOSL, Company

*Circle-wise combined market share exceeds 50%

18 August 2017

Idea Cellular

Exhibit 11: Pro forma statement for Vodafone-Idea merged entity (INR m)

Announced

Idea

Vodafone

Topline

Growth

Idea

Vodafone

EBITDA

margin

growth

Synergy

EBITDA (post synergy) 248,910

margin (post synergy)

33%

Debt

219,083

29%

177,853

24%

979,000

FY16

359,494

403,457

762,951

119,676

129,234

248,910

33%

FY17

355,758

392,391

748,149

-2%

102,763

116,320

219,083

29%

-12%

Approval

Year 1 Year 2 Year 3 Year 4

stage

FY18

FY19

FY20

FY21

FY22

346,806 368,718 374,981 392,650 411,287

385,842 418,119 452,150 482,816 513,679

732,648

-2%

786,837 827,130 875,466 924,966

Comments

Factoring 200-350bp market share dilution

for Vodafone and Idea over FY16-21E

177,853

24%

-19%

202,652 239,868 262,640 295,989

26%

29%

30%

32%

14%

18%

13%

21,000

50,400

Building recovery from FY19E

945,485 1,079,000

Market cap

648,145 648,145 648,145

1,593,630 1,727,145 1,627,145

EV/EBITDA (x)

6.4

7.9

9.1

Net Debt to EBITDA (x)

3.8

4.9

5.5

Opex synergy is 60% of INR 140b total.

67,200 Building 0% synergy in FY19 and 80% synergy

in 4th year - FY22

202,652 260,868 313,040 363,189

26%

32%

36%

39%

Factoring debt reduction of INR 100b due to

979,000 979,000 979,000 979,000

tower sale in FY18.

648,145 648,145 648,145 648,145

1,627,1451,627,1451,627,1451,627,145

8.0

6.2

5.2

4.5

Value accretion only from FY20E

4.8

3.8

3.1

2.7

Source: MOSL, Company

18 August 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 (%)

Minority Interest

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

359,494

13.9

239,818

66.7

119,676

33.3

62,561

57,115

18,831

38,284

4,217

42,501

15,220

35.8

27,281

24,574

-14.6

7.6

FY17

355,758

-1.0

252,995

71.1

102,763

28.9

78,272

24,491

37,342

-12,851

4,218

-8,633

-4,636

53.7

-3,997

-114.7

-1.1

FY18E

346,806

-2.5

262,618

75.7

84,188

24.3

86,461

-2,272

44,932

-47,205

3,371

-43,833

-4,497

10.3

-39,336

884.1

-11.3

(INR Million)

FY19E

368,718

6.3

273,754

74.2

94,964

25.8

92,569

2,395

46,800

-44,405

3,649

-40,756

0.0

-40,756

3.6

-11.1

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

E: MOSL Estimates

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

FY17

36,053

211,269

247,322

550,545

13,218

811,085

1,149,691

382,120

767,571

75,351

63,783

59,912

588

13,139

827

45,358

155,592

151,551

4,041

-95,681

811,085

FY18E

36,053

171,933

207,986

576,641

13,218

797,845

1,214,691

468,580

746,110

75,351

63,783

77,513

1,216

14,243

10,997

51,057

164,974

159,520

5,454

-87,461

797,845

(INR Million)

FY19E

36,053

131,177

167,230

613,747

13,218

794,195

1,279,691

561,150

718,541

75,351

63,783

110,705

702

15,143

39,218

55,642

174,246

169,605

4,641

-63,541

794,195

18 August 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

13.5

43.5

0.3

11.5

FY14

5.5

19.5

49.8

0.4

7.9

15.8

FY15

8.9

23.6

64.0

0.6

8.1

9.7

3.7

1.3

1.8

4.2

0.7

16.1

8.2

11.7

0.5

0.6

1.0

9.6

0.6

FY16

6.8

24.2

71.6

0.6

9.5

12.7

3.6

1.2

2.0

5.9

0.7

10.1

6.3

7.7

0.4

0.5

0.6

3.0

1.5

FY17

-1.1

20.6

68.6

0.0

-77.9

4.2

1.3

2.4

7.8

0.0

-1.6

1.5

1.8

0.3

0.4

0.7

2.0

FY18E

-10.9

13.1

57.7

0.0

-7.9

6.6

1.5

2.5

9.7

0.0

-17.3

-0.3

0.3

0.4

0.5

-0.1

2.4

FY19E

-11.3

14.4

46.4

0.0

-7.6

6.0

1.9

2.4

8.7

0.0

-21.7

0.3

0.4

0.3

0.5

0.6

0.1

3.1

0.3

7.4

5.9

6.0

0.5

0.8

2.7

0.9

6.2

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

E: MOSL Estimates

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

16,560

118,147

-75,157

42,991

-68,432

-143,588

175

-86,558

-8,505

-2,598

-97,486

-122,927

130,745

7,818

FY17

-3,997

78,272

40,411

-11,443

6,960

110,202

-4,829

105,373

-52,930

52,443

-33,472

-68,763

-155,165

-4,453

84,297

-32,800

-2,599

44,445

-5,347

6,174

827

FY18E

-39,336

86,461

44,932

1,951

94,008

-65,000

29,008

-65,000

26,096

-44,932

390

-18,446

10,562

435

10,997

FY19E

-40,756

92,569

46,800

4,301

102,915

-65,000

37,915

-65,000

37,106

-46,800

-9,694

28,221

10,997

39,218

18 August 2017

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or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.

Idea Cellular

Disclosure of Interest Statement



Analyst ownership of the stock

Idea Cellular

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

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Contact No.:022-30801085.

Registration details of group entities.: MOSL: NSE (Cash): INB231041238; NSE (F&O): INF231041238; NSE (CD): INE231041238; BSE (Cash): INB011041257; BSE(F&O): INF011041257; BSE(CD); MSE(Cash): INB261041231;

MSE(F&O): INF261041231; MSE(CD): INE261041231; CDSL: IN-DP-16-2015; NSDL: IN-DP-NSDL-152-2000; Research Analyst: INH000000412. AMFI: ARN 17397. Investment Adviser: INA000007100. Motilal Oswal Asset

Management Company Ltd. (MOAMC): PMS (Registration No.: INP000000670) offers PMS and Mutual Funds products. Motilal Oswal Wealth Management Ltd. (MOWML): PMS (Registration No.: INP000004409) offers

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18 August 2017