United States

Analyst Research Report Snapshot


Bharti Airtel Ltd. | Q4FY13 Result Update




IndiaNivesh Securities Pvt Ltd


02 May 2013





Companies referenced:


Available for Immediate Download

Bharti Airtel Ltd. Mixed overall Performance - Growth was seen in major KPI’s Bharti Airtel Ltd (BAL) Q4FY13 performance was mixed-bag, revenue and net profit was below INSPL estimates [however EBITDA was above our estimate]. During the quarter, consolidated revenue grew by 1.0% qoq to Rs.204.5 bn [v/s INSPL est. 207.7 bn]. Revenue from ‘mobile services’ - India & South Asia, grew by 3.2% qoq to Rs.112.8bn led by increase in India segment [+4.9% qoq to Rs107.1bn], partially offset by 21.0% qoq [to Rs.5.8 bn] decline in South Asia segment revenue. In ‘mobile services’-India segment, revenue was largely driven by 4.8%/20.1%/10.3% sequential increase in Voice/Data/Others [83%/6%/2% of India Rev] revenue, partially offset by 3.8% qoq decline in VAS revenue. Total India & South Asia geography revenue grew by 2.0% q-o-q driven by Mobile Services (+3.2% qoq) Telemedia Services (+0.6% qoq), Digital TV (+3.2% qoq), Passive Infra (+3.2% qoq) and Others (+9.6% qoq), partially offset by 7.6% qoq decline in Enterprise segment. Outlook & Valuation: At CMP of Rs317, the stock is trading at 6.8x FY14E and 6.4x FY15E EV/EBITDA estimates. The current quarter performance was below our expectations largely due to de-growth in Africa and South Asia geography. However, on the operational front India geography performed well backed by favourable performance from remaining SBUs. The surge in Data revenue and ARPU looks positive for margin outlook. We believe BAL’s initiatives to expand 3G cell sites would bode well 3G/4G and 2G data revenue growth. We maintain BUY with the previous target price of Rs.368 giving 16% upside from current price level.

Why buy analyst research?

  • Institutional quality research
  • Available for Immediate Download
  • Detailed company or industry insight
  • Print or save
  • 24 hour customer support
Return to previous page without adding this item to your cart.
Email Customer Support.

About Analyst Research

Analyst research reports are available for immediate download after purchase. You will have unlimited access to the report for 24 hours after purchase, to download, print or save it as many times as you wish. Analyst Research provided by Reuters does not constitute investment advice, and is not endorsed by Reuters Research. This information is protected by copyright and intellectual property laws. More information on Analyst Research.