Presented byMd. Danish Ur Rahman

Md. Arshad AlamMd. Nehal Ahmad

Shambhu Paul

• Introduction to Bharti Airtel• Financial Analysis• Ratio Analysis

Content

History Of Airtel

• Bharti Tele-Ventures was incorporated on July 7, 1995 as a company with limited liability under the Companies Act, for promoting telecommunications services. Bharti Tele-Ventures received certificate for commencement of business on January 18, 1996.

Industry• Subscriber base- 330m• Wireless penetration- 14.7%• CAGR (wireless)- 68%• Second Largest Telecom Market

– Lowest tariff charges in the world– Wireless Subscribers – 315.3 Mn– Wireline Subscribers – 38.4 Mn– Teledensity – 30.6– Share in Asia Pacific mobile phone market- 6.4– Mobile subscriber base growth rate- 82.2%, 42% of the population

below 20• 9 GSM and 5 CDMA players in 19 circles and 4 metro cities connecting

2000 towns• Bharti Airtel largest player with presence in all 23 circles

FINANCIALS

Share Capital• Rs 8,340.15 million raised through the IPO• 2002 Went Public• Shares in issue– 1,898,101,604 as at September 30, 2008

• Market Capitilization– Approx. Rs. 1,371 billion

• P/E– 19.98

• EPS– 36.16

Sources of Funds

• Equity share capital 1,898.80 1,898.77 1,898.24 1,897.91 1,895.93

2011 2010 2009 2008 2007

• Share application money 278.60 186.09 116.22 57.63 30.00

2011 2010 2009 2008 2007

Reserve & Surplus

Secure Loans

Unsecured Loans

Total

Fixed Assets

Less Accumulated Depreciation

Investments

Net Current Asset

Current Liabilities & Provisions

Total of C.A. & C.L.

Some Key highlights…

Income Statement (Sep '08) (Mar '08)

Quarterly Annual

Net Sales 8274.37 25703.51

Other Income 28.43 235.86

PBDIT 3151.06 10736.89

Net Profit 1604.78 6244.20

Balance Sheet Amount in Rs. Cr

Total Share Capital 1897.91

Net Worth 20241.49

Total Debt 6570.34

Net Block 19030.65

Investments 10952.85

Net Current Assets -5922.94

Total Assets 26811.84

Per Share Ratios

Key Ratios - Airtel Mar-11 Mar-10 Mar-09 Mar-08 Mar-07

Debt-Equity Ratio 0.38 0.54 0.83 0.6 0.07

Long Term Debt-Equity Ratio 0.35 0.5 0.76 0.5 0.03

Adjusted EPS 20.12 22.40 48.93 34.08 21.20

Adjusted Cash EPS 32.27 33.19 66.76 52.16 34.34

Key Ratios - 2011 2010 2009 2008 2007

Dividend Per share 1.00 1.00 2.00 --- ---

Operating Profit Per Share 35.29 36.65 69.50 56.16 38.28

Net Operating Income Per share 100.11 93.77 179.37 135.73 94.16

Free Reserve Per Share 103.84 84.64 121.78 83.18 49.88

Profitability RatiosProfitability Mar-11 Mar-10 Mar-09 Mar-08 Mar-07

Operating Margin 35.25 39.08 38.74 41.37 40.65

Profit Margin 24.22 28.15 29.33 29.08 27.47

Net Profit Margin 20.21 26.36 22.58 23.99 22.46

Adjusted Cash Margin 32.10 35.25 36.96 38.03 36.26

Return on Net Worth 17.60 25.79 28.13 30.94 35.35

Return on Funds 16.89 24.36 29.01 28.52 29.83

GROWTH!!!!!!!!!

Income and Expenditure(Rs. Cr)

Operating Profit (Rs. Cr.)

Customer Growth across the years

Year Overall Subscriber BaseAirtel Subscriber

Base Market Share

Mar-07 2,61,54,405 42,16,317 16.12087

Mar-08 4,10,25,940 1,04,78,585 25.54136

Mar-09 6,91,93,321 1,95,79,208 28.29638

Mar-10 12,14,31,166 3,71,41,210 30.58623

Mar-11 18,44,13,702 6,19,84,721 33.61178

Subscriber GrowthGroup Company wise % market share - Nov'2008

Sr, No. Name of Company Total Sub Figures % Market Share

1 Bharti Airtel 8,29,20,593 33.25%

2 Vodafone Essar 5,87,64,164 23.57%

3 BSNL 4,04,87,511 16.24%

4 IDEA 3,28,09,720 13.16%

5 Aircel 1,53,75,258 6.17%

6 Reliance Telecom 95,82,695 3.84%

7 Spice 37,05,894 1.49%

8 MTNL 38,21,277 1.53%

9 BPL 18,82,324 0.75%

  All India 24,93,49,436 100.00%

Stock Movement

Share Price Competitors Differentials

Company Name Last Price % Chg 52 wkHigh

52 wkLow

Market Cap(Rs. cr)

Bharti Airtel 722.30 -2.69 1,063.00 484.00 137,107.31

Reliance Comm 249.20 4.18 844.00 148.60 51,435.55

Idea Cellular 53.50 0.09 148.90 34.05 16,585.51

Tata Comm 495.15 0.53 783.00 320.00 14,111.78

MTNL 74.85 -2.54 219.45 51.75 4,715.55

TataTeleservice 20.15 2.03 65.00 12.50 3,822.84

Spice Comm 36.00 10.43 77.30 23.25 2,483.73

Tulip Telecom 501.20 15.66 1,225.00 385.00 1,453.48

HFCL Infotel 7.45 6.28 59.70 5.55 391.51

Net Profit(Rs. Cr)

For the current year

Conclusion

•We analyze from Financial Analysis and Ratio Analysis that Company is in the Profit Stage and they are Enhancing Day by Day.

Thank You!!!!!!!