Bharti Airtel Ltd.- Company - India
Data, Information, News, Analysis and Valuation
Data and News Relevant for analysis and valuation of the company will be given in this knol as a part of learning effort by students of investment analysis, security analysis and equity research courses. The information is meant for demonstrating the application of textbook principles by learners only. It is not for commercial decision making by investors. Investors are advised to contact and consult registered investment advisors only.
Authors
About the Company
- Bharti Airtel, formerly known as Bharti Tele-Ventures Limited (BTVL) is India's largest cellular service provider with more than 79 million subscribers as of November 2008.
- SingTel owns over 30% of the Bharti Telecom Group.
Source: http://www.bhartiairtel.in/index.php?id=aboutbhartiairtel http://www.answers.com/topic/bharti-airtel
Quick Facts:
- Chairman & MD: Sunil Mittal
- Joint MD: Akhil Gupta
- Founded: 1985
- Revenue (2008): $6 billion
Promoters:
- Bharti Telecom Ltd (45.3%)
- Pastel Ltd (15.58%)
- Indian Continent Investment Ltd In Various Accounts (6.27%)
Public Shareholding:
- Life Insurance Corporation Of India Under Various Schemes (3.43%)
- Europacific Growth Fund (1.47%)
Rating:
AAA given by CRISIL in 2008Auditors:
S R Batliboi & Associates (for 2008-09)
Source: CMIE Prowess Database
_______________________________________________________________________________
Recent News:
· It has set a target of 125 million subscribers by 2010.
· In December 2008, Bharti Airtel rolled out third generation services in Sri Lanka in association with Singtel.
· In July 2007, Bharti Airtel signed an MoU with Nokia-Siemens for a 900 million dollar expansion of its mobile and fixed network.
Source: http://www.en.wikipedia.org/wiki/Airtel
_______________________________________________________________________________Stock Information (as on Feb 03, 2009):
· BSE: Rs. 624.90
· NSE : Rs. 625.00
· 52 Week Low: Rs. 483.00
· Face Value: Rs. 10
Source: http://www.sharekhan.com/MarketCorner/CompanySnapshot.aspx?SSKICode=BHARTI _______________________________________________________________________________
Summary of Financials:
| (Rs. Crore) | 08-Mar | 08-Jun | 08-Sep | 08-Dec |
|
| 3 mths | 3 mths | 3 mths | 3 mths |
| Total Income | 7446.82 | 8010.79 | 8302.8 | 8850.25 |
| Net Sales | 7413.73 | 7893.01 | 8274.37 | 8830.11 |
| Other Income | 33.09 | 117.78 | 28.43 | 20.14 |
| Extra-ordinary Income | 0 | 0 | 0 | 0 |
| Change in stock | 0 | 0 | 0 | 0 |
| Expenditure | 5654.52 | 5964 | 6698.02 | 6832.96 |
| Consp. raw mat. | 0 | 0 | 0 | 0 |
| Personnel cost | 330.54 | 357.5 | 360.59 | 382.04 |
| Other expenses | 4248.44 | 4557.67 | 4791.15 | 5094.2 |
| Extra-ordinary exp. | 0 | 0 | 0 | 0 |
| PBDIT | 2867.84 | 3095.62 | 3151.06 | 3374.01 |
| Interest | 280.08 | 0 | 1075.99 | 401.66 |
| PBDT | 2587.76 | 3095.62 | 2075.07 | 2972.35 |
| Depreciation | 762.94 | 725.1 | 764.47 | 814.38 |
| PBT | 1824.82 | 2370.52 | 1310.6 | 2157.97 |
| Tax | 32.52 | 323.73 | -294.18 | 140.68 |
| PAT | 1792.3 | 2046.79 | 1604.78 | 2017.29 |
| Adjusted EPS (Rs.) | 32.90045 | 36.23817 | 36.16092 | 39.30617 |
| Growth (%) |
|
|
|
|
| Net sales | 42.06004 | 40.65475 | 36.54324 | 33.42021 |
| Total expenses | 42.64934 | 31.41629 | 48.70412 | 29.8368 |
| PBDIT | 31.78564 | 16.44542 | 19.65021 | 18.73335 |
| Interest | 540.6221 | Error | Error | -14.2174 |
| PBDT | 21.3532 | 16.44542 | -21.2067 | 25.23384 |
| PAT | 39.27916 | 44.86241 | -0.8875 | 42.07868 |
| Profitability (%) |
|
|
|
|
| PBDIT/Total income | 38.51093 | 38.64313 | 37.95178 | 38.12333 |
| PBDT/Total income | 34.74987 | 38.64313 | 24.99241 | 33.58493 |
| PAT/Total income | 24.06799 | 25.55041 | 19.32818 | 22.79359 |
| PBDIT netof PE&OI/OpInc | 38.68282 | 39.21977 | 38.08217 | 38.21028 |
| PBDT netof PE&OI/OpInc | 34.90497 | 39.21977 | 25.07828 | 33.66153 |
| PAT netof PE&OI/OpInc | 23.72908 | 24.43947 | 19.051 | 22.6175 |
| Price (Rs.) | 826.1 | 721.65 | 785.05 | 715.1 |
| P/E | 25.10908 | 19.91409 | 21.7099 | 18.19307 |
Source: Collated data from the annual reports of Bharti Airtel:
http://www.bhartiairtel.in/index.php?id=annual_results
Analysis
Graham-Rao Method
| Year | PAT (Rs. Crores) |
| 1999 | -1.68 |
| 2000 | 0.8 |
| 2001 | 0.39 |
| 2002 | 0.13 |
| 2003 | 0.22 |
| 2004 | 0.37 |
| 2005 | 1210.67 |
| 2006 | 2012.08 |
| 2007 | 4033.23 |
| 2008 | 6244.10 |
Dividend Discount Model
Bharti-Aritel has not given any dividends in the past. Thus, the dividend discount model is not applicable. We shall nonetheless use the cash flow models in the coming days for further analysis of the company.
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