Bharti Airtel Ltd : A brief Analysis

Company overview: A flagship company of Bharti Enterprises ltd, Global brand in telecom sector, Incorporated on 7th July 1995, 3rd Largest Mobile operator in the world, Headquartered in New Delhi, A company which is known for bringing world class service built on leading edge technologies, Presence across USA, Europe, Africa, Middle east, Asia Pacific, SAARC, In total operates in 18 countries., in a way truly a multinational company from India & we definitely can be proud on this, Represents 24% of world’s population (Surprised!!) Its true

Segments of operation: Mobile Services(2G,3G,4G Wireless services postpaid/prepaid, Roaming, Internet, Mobile tv, Video calls & Gaming), Home services (Fixed line telephones & Broadband), Digital TV Services( dth), Bharti Infratel A subsidiary a leading provider of tower & related infrastructure, You need to note an interesting point the AGR Due issues faced by voda & idea network, Bharti never faced and one reason behind is there strong subsidiary businesses in form of Infratel & one more called Airtel Business

Key Business updates: 18th May Airtel launches work@home India’s first enterprise grade work from home solutions

11th May: Airtel selects IBM & Red hat to build open hybrid cloud network, Remember India’s Data consumption is expected to grow at a CAGR 70% by 2022

5th May: Not just my birthday 😊 but All Airtel thanks customers to get free unlimited access to ZEE5’S Premium catalogue

28th May: Airtel & Nokia signs multiyear deal to boost network capacity & customer experience

20th January: Airtel & Google cloud partner to boost collaboration, productivity & digital transformation in India

& Many………………………….

Lets Talk Results: Q4 Had a loss of 5,200 crore & what happened with stock price?? Stock price still went up & why so we will tell you

Revenue growth year on year is 8.4% between Financial year -19 to FY-20, Now again we can assume revenue is not that great buy why again we are positive, EBITDA(Earning before interest tax, Depreciation & amortization) EBITA has grown by 41.1% YOY Growth, EBIT has grown by 94%, Net profit is looking at negative of 5237 crore due to one time spectrum expense which markets have expected, Operating free cash flow in positive with 1022 crore

Average revenue per user per month currently is at 154/- increased from 123/- compared to Q4 of 2019

Share holding Pattern : 59% is with promoter and again positive and in such tough times not even one paise share pledged, No concern with funds raising for company, Institutional investors have increased the stake, and general public have only 4.9%

Current Market cap : 3.25 lakh crore, ROE and ROCE are negative & we need to look forward, Interest coverage is less than 1 but with hints of improving due to tariff hikes

Key Valuation drivers : Well positioned paying AGR Dues, Strong Average revenue per user and sharp growth in EBITDA, Expected rise in wallet share due to Voda-Idea concern, Its retained its competitive position with reliance jio, Fully exploring emerging markets primarily Africa which has contributed 60% revenue, Its reasonably valued even we have seen stocks picking up

Keep this stock in your radar 🙂

Signing off…..

Having worked several years into Life Insurance, Health Insurance, Mutual Funds & Closely with people into financial planning i am now putting my first step in investment advisory

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