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Telecom Towers in India
March 2012
Executive Summary

                In FY 20--, x1 telecom towers were added, taking the total no. of towers in the country to x2
  Market        In terms of revenue, domestic market size of telecom towers is estimated at INR x3-x4 bn
                The market is expected to grow at a CAGR of x5% in revenue and x6% in earning till 20--

               Drivers:                                                  Challenges:
                Growth in Wireless Subscriber Base                        Challenges faced in rural set up
  Drivers &     Emergence of Solar Power as a Positive                    Increasing Pollution and Radiations
 Challenges     Source of Energy
                Introduction 3G and Upcoming Cellular
                Technology
                Spectrum Scarcity

                Trend1
  Trends &      Trend2
Developments    Development1
                Development2
                                                           Major Players
                 Bharat Sanchar Nigam Ltd.                Bharti Infratel Ltd.              GTL Infrastructure Ltd.
Competition
                      Indus Towers Ltd.                 Reliance Infratel Ltd.               Viom Networks Ltd.


                                      TELECOM TOWERS IN INDIA 2012.PPT                                                2
•Introduction
•Market Overview
•Scope in India
•Drivers & Challenges
•Major Telecom Tower Companies
  Other Telecom Tower Companies
•Mergers & Acquisitions
•Trends & Developments
•Strategic Recommendations
•Appendix
      TELECOM TOWERS IN INDIA 2012.PPT   3
Introduction

 Telecom Industry Overview

            Indian telecom sector is the x1 largest sector in the world and x2 largest among the Asian emerging
            economies

            The telecommunication sector in India has been the major contributor to the country’s growth,
            accounting for around x3% of the total GDP in FY--


                                                  Telecommunication Industry




          Sub-Vertical1           Sub-Vertical2            Sub-Vertical3              Sub-Vertical4         Sub-Vertical5




             • Sub-Vertical3 consists of service deployment facilities and equipments
             • Telecom towers are one of the prime components of Sub-Vertical3
             • India being an enormous country with rapidly increasing colossal subscriber base across the country,
               deployment of telecom towers will be essential to reach every corner of the nation


                                             SAMPLE
             • Telecom towers can be broadly categorized in two types, type1 and Roof Type Tower

Source:

                                                   TELECOM TOWERS IN INDIA 2012.PPT                                         4
Demand for telecom towers is high resulting in a rapidly growing
 industry and emergence of lucrative tower business

 Market Overview – India
 • Growth in mobile subscribers in India over the last few years has created huge opportunities for the telecom
   infrastructure industry
 • In FY 20-- alone, x1 telecom towers were added, taking the total no. of towers in the country to x2
 • In terms of revenue, market size of telecom tower vertical is estimated at INR x3-x4 bn, which excludes reasource1 and
   reasource2 billing
          The market is expected to grow at a CAGR of x5% in revenue and x6% in earning till 20--
 • All leading mobile service operators are expanding and increasing their coverage by increasing their network, increase
   coverage through tower sharing and using independent tower networks
 • The growing market for towers is also attracting the attention of vertical1 to invest in the companies
 • The commercial terms between the tower company and its tenants are governed by Master Service Agreements (MSA)


                                 Telecom Tower Requirements - India
                                Towers (‘000s)
                               1.500

                               1.000
                                                                        +30%
                                 500

                                    0
                                         20--     20--     20--     20--     20--e    20--e    20--e     20--e
                                                                                                    Note: The figures are for the respective financial years
Source:

                                                           TELECOM TOWERS IN INDIA 2012.PPT                                                                5
Market share of Telecom Tower Companies - India




               Player1    Player2    Player3       Player4      Player5   Player6   Player7




          SAMPLE
            • Company1 holds majority of the telecom tower market in India
            • The major y1 companies hold around y2% of the market
            • Rest of the y3% market is shared by various specialty1 and specialty2 owned
              tower companies

Source:

                                    TELECOM TOWERS IN INDIA 2012.PPT                          6
Infrastructure sharing takes place at two levels – level1 and
 level2
                                           Types of Infrastructure Sharing


                            level1                                                level2




          • aaaaaaaaaa                                            • aaaaaaaaaa
          • bbbbbbbbb                                             • bbbbbbbbb
          • ccccccccccc                                           • ccccccccccc




                               X                                                    X

                                          Benefits of Infrastructure Sharing

                          • aaaaaaaaaa
                          • bbbbbbbbb
                          • ccccccccccc


Source:

                                               TELECOM TOWERS IN INDIA 2012.PPT            7
SWOT Analysis of Telecom Tower Sharing in India

                    Strengths                                                  Weaknesses


   • aaaaaaaaaa                                                • aaaaaaaaaa
   • bbbbbbbbb                                                 • bbbbbbbbb
   • ccccccccccc                                               • ccccccccccc




                                              SWOT
                                             Analysis


                   Opportunities                                                Threats


   • aaaaaaaaaa                                                • aaaaaaaaaa
   • bbbbbbbbb                                                 • bbbbbbbbb
   • ccccccccccc                                               • ccccccccccc




Source:

                                   TELECOM TOWERS IN INDIA 2012.PPT                         8
Drivers & Challenges – Summary




  Drivers                                                        Challenges
  Growth in Wireless Subscriber Base                             Challenges faced in rural set up

  Introduction 3G and Upcoming
  Cellular Technology                                            Increasing Pollution and Radiations

  Spectrum Scarcity

  Emergence of Solar Power as a
  Positive Source of Energy




                                       TELECOM TOWERS IN INDIA 2012.PPT                                9
Public: Domestic Company – Company1 (-/-)
 Company Information                                                         Offices and Centres – India
                         Adress line1
 Corporate Address       Adress line2
                         City. Country
 Tel No.                 +91- --- - -----
                                                                                          City Name
 Fax No.                 ++91- --- - -----
 Website                 www.------.com
 Year of Incorporation   19--
 Ticker Symbol           ------
 Stock Exchange          Exchange1                                                                              Head Office

 Products and Services

 Category                Products/Services
                                                                             Key People
                         •Passive Infrastructure Solutions
                         •Tower Operations Center                            Name                     Designation
 Primary Products        •Infratel Enterprise Suite
                                                                             Mr. X                    Chief Executive Officer
                         •Advantage Infratel
                                                                             Mr. Y                    Chief Financial Officer
                         •Shared Infrastructure
                                                                             Mr. Z                    Chief Operating Officer


Source:

                                                       TELECOM TOWERS IN INDIA 2012.PPT                                         10
Public: Domestic Company – Company1 (-/-)
 Financial Snapshot                                                               Key Ratios
   Revenue                                                          Profit                                        y-o-y change
                      Total Income          Net Profit/Loss                                Particulars                           2011       2010      2009        2008
   INR mn                                                          INR mn                                           (2011-10)
                                                              c4                  Profitability Ratios
  150                                                                  8
                                                                                   Operating Margin                   2.23       0.74%      -1.49%    -9.59% -10.70%
                             c2             c3                         6
  100                                                                              Net Margin                        -34.74      -35.26%    -0.51%    1.00% -37.12%
             c1                                                        4           Profit Before Tax Margin          -53.05      -53.57%    -0.51%    -25.32% -12.44%
   50                                                                              Return on Equity                  -10.93      -11.06%    -0.14%    0.21%      -5.79%
                                                                       2
                                                                                   Return on Capital Employed         0.18       0.06%      -0.12%    -0.55% -0.48%
    0                                                                  0
                                                                                   Return on Working Capital         78.72       77.98%     -0.74%    0.18%      -3.99%
             20--           20--           20--           20--                     Return on Assets                   -2.26      -2.29%     -0.04%    0.05%      -1.56%
                                                                                   Return on Fixed Assets             -2.88      -2.94%     -0.06%    0.09%      -2.98%
 Financial Summary
                                                                                   Cost Ratios
 • The company incurred a net profit of INR a1 mn in FY 20--, as                   Operating costs (% of Sales)       -2.95      99.22%    102.16% 112.14% 113.76%
   compared to net profit of INR a2 mn in FY 20--                                  Administration costs (% of
                                                                                                                      1.04       18.03%     17.00%    15.75% 18.00%
                                                                                     Sales)
 • The company reported total income of INR a3 mn in FY 20--,
                                                                                   Interest costs (% of Sales)       20.57       63.33%     42.77%    45.59% 29.69%
   registering an increase of a4 per cent over FY 20--
                                                                                   Liquidity Ratios
 • The company earned an operating margin of a5 per cent in FY 20--,               Current Ratio                    -54.82%       0.82       1.81      4.42       7.13
   an decrease of a6 percentage points over FY 20--                                Cash Ratio                       -96.41%       0.19       5.34      2.99       5.66
 • The company reported debt to equity ratio of a7 in FY 20--, an                  Leverage Ratios
   increase of a8 per cent over FY 20--                                            Debt to Equity Ratio              45.86%       3.82       2.62      2.92       2.72
                                                                                   Debt to Capital Ratio             6.85%        0.75       0.70      0.72       0.71
 Key Financial Performance Indicators                                              Interest Coverage Ratio          124.52%       0.01       -0.05     -0.27      -0.46

             Indicators                       Value (--/--/20--)                   Efficiency Ratios
  Market Capitalization (INR mn)                    10,985                         Fixed Asset Turnover              -9.25%       0.08       0.09      0.07       0.06
                                                                                   Asset Turnover                    18.69%       0.06       0.05      0.04       0.03
  Total Enterprise Value (INR mn)                   87,544
                                                                                   Current Asset Turnover            5.19%        0.47       0.45      0.11       0.07
  EPS (INR)                                         48.39                          Working Capital Turnover         -308.15%      -2.08      1.00      0.14       0.08
  PE Ratio (Absolute)                                66.9                          Capital Employed Turnover         58.09%       0.29       0.19      0.16       0.12

Source:                                                                                                                                    Improved            Decline

                                                               TELECOM TOWERS IN INDIA 2012.PPT                                                                    11
Public: Domestic Company – Company1 (-/-)
 Key Business Segments                                                           Key Geographic Segments
                   Product1          Product2      Product3                                          India     Outside India


 100%                                                                           100%


  50%                                                                            50%


   0%                                                                              0%
            20--              20--          20--           20--                               20--     20--         20--         20--


 Key Information

 Description                           Details
                                       • aaaaaaaaaa
 Overview                              • bbbbbbbbb
                                       • ccccccccccc

                                       • It owns, deploys, and manages telecom towers & communication structures for telecom operators as
 Operations                             well as wireless service providers




Source:

                                                           TELECOM TOWERS IN INDIA 2012.PPT                                                 12
Some Other Telecom Tower Companies (-/-)

 Company2
 Business Highlights
 • aaaaaaaaaa
 • bbbbbbbbb
 • Its products include telecom towers, transmission towers, substation structures, monopoles and high masts, windmill towers, broadcast
   towers, and telecom shelters
 • It serves customers in telecom, transmission and distribution, and special structures markets
 • ccccccccccc




 Company3
 Business Highlights
 • aaaaaaaaaa
                                                 SAMPLE
 • bbbbbbbbb
 • It offers Build-Operate-Lease services to design, acquire sites, procure and build the passive infrastructure for cell sites
 • ddddddddd
 • eeeeeeeeee
 • Also an independent provider of passive telecom infrastructure, offering tower space and active electronics space to multiple operators at
   its owned sites



Source:

                                                        TELECOM TOWERS IN INDIA 2012.PPT                                                    13
Mergers & Acquisitions (20-- - 20--)

  Announced       Deal Type       Target         Buyer/Investor(s)             Seller(s)   Deal Size (INR)    Status

                                                                                                             Completed/
   Month, 20--    Acquisition     Target1              Buyer1                   Seller1         x1 bn
                                                                                                             Expected


                                                                                                             Completed/
   Month, 20--   De-acquisition   Target2              Buyer2                   Seller2         x2 bn
                                                                                                             Expected


                                                                                                             Completed/
   Month, 20--      Merger        Target3              Buyer3                   Seller3         x3 bn
                                                                                                             Expected


                                                                                                             Completed/
   Month, 20--      Merger        Target4              Buyer4                   Seller4         x4 bn
                                                                                                             Expected


                                                                                                             Completed/
   Month, 20--    Acquisition     Target5              Buyer5                   Seller5         x5 bn
                                                                                                             Expected


                                                                                                             Completed/
   Month, 20--    Acquisition     Target6              Buyer6                   Seller6         x6 bn
                                                                                                             Expected


                                                                                                             Completed/
   Month, 20--    Acquisition     Target7              Buyer7                   Seller7         x7 bn
                                                                                                             Expected
Source:

                                            TELECOM TOWERS IN INDIA 2012.PPT                                           14
Trends & Developments


          Introduction of   • aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa
           Biometrics in
              Trend1        • bbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbb
             Education      • ccccccccccccccccccccccccccccccccccccccccccccccccccccc




     Biometric ID Cards     • aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa
          for Public
           Trend2           • bbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbb
       Transportation       • ccccccccccccccccccccccccccccccccccccccccccccccccccccc




           Biometrics       • aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa
          Application in
          Development1      • bbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbb
            Customs         • ccccccccccccccccccccccccccccccccccccccccccccccccccccc




                            • aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa
          Development2      • bbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbb
                            • ccccccccccccccccccccccccccccccccccccccccccccccccccccc


Source:

                                                   TELECOM TOWERS IN INDIA 2012.PPT   15
Strategic Recommendations (-/-)

                          • aaaaaaaaaaaaaaaaaaaaa
                          • bbbbbbbbbbbbbbbbbbbbb



                         Strategic Recommendation1


          • aaaaaaaaaa
          • bbbbbbbb
          • ccccccccc




                         Strategic Recommendation2


          • aaaaaaaaaa
          • bbbbbbbb
          • ccccccccc



Source:

                           TELECOM TOWERS IN INDIA 2012.PPT   16
Appendix

Ratio                          Calculations                             Ratio                       Calculations
                               (Operating                                                           Current Assets / Current
Operating Margin                                                        Current Ratio
                               Income/Revenues)*100                                                 Liabilities

Net Margin                     (Net Profit / Revenues) *100                                         {(Cash & Bank Balance +
                                                                        Cash Ratio                  Marketable Securities) / Current
                               (Income Before Tax / Revenues                                        Liabilities)}
Profit Before Tax Margin
                               *100
                                                                                                    Total Liabilities / Shareholders
                                                                        Debt to Equity
                               (Net Income / Shareholders                                           Equity
Return on Equity (ROE)
                               Equity)*100
                                                                                                    {Total Debt / (Shareholders
                                                                        Debt to Capital Ratio
                               EBIT / (Total Assets – Current                                       Equity + Total Debt)}
Return on Capital (ROCE)
                               Liabilities)*100
                                                                        Interest Coverage Ratio     EBIT / Interest Expense
                               (Net Income / Working Capital)
Return on Working Capital
                               *100
                                                                        Fixed Asset Turnover        Sales / Fixed Assets
Return on Assets               (Net Income / Total Assets)*100
                                                                        Asset Turnover              Sales / Total Assets
Return on Fixed Assets         (Net Income / Fixed Assets) *100

                               (Operating Expenses / Sales)             Current Asset Turnover      Sales / Current Assets
Operating Costs (% of Sales)
                               *100

Administration Costs (% of     (Administrative Expenses / Sales)        Working Capital Turnover    Sales / Working Capital
Sales)                         *100

Interest Costs (% of Sales)    (Interest Expenses / Sales) *100         Capital Employed Turnover   Sales / Shareholders Equity



                                                     TELECOM TOWERS IN INDIA 2012.PPT                                                  17
Thank you for the attention
Telecom Tower in India report is a part of Research on India’s Telecommunications Series. For
more detailed information or customized research requirements please contact:

Kalyan Banga
Phone:            +91 33 4064 6215
E-Mail:           kalyan.banga@netscribes.com




Research on India is a product of Netscribes (India) Pvt. Ltd. Research on India is dedicated to disseminating information and providing quick
insights on “hot” industries in India and other emerging markets. Track our new releases and major updates in these industries on




About Netscribes
Netscribes is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business &
corporate intelligence, content-management services, and knowledge-software services. At its core lies a true value proposition that draws upon a vast knowledge base.
Netscribes is a one-stop shop designed to fulfil clients’ profitability and growth objectives.

Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India, Netscribes (India) Pvt. Ltd.
or “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes (India) Pvt. Ltd. and prior
permission is required for guidelines on reproduction.


                                                                   TELECOM TOWERS IN INDIA 2012.PPT                                                                      18

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Market Research Report : Telecom Towers in India 2012

  • 1. Telecom Towers in India March 2012
  • 2. Executive Summary In FY 20--, x1 telecom towers were added, taking the total no. of towers in the country to x2 Market In terms of revenue, domestic market size of telecom towers is estimated at INR x3-x4 bn The market is expected to grow at a CAGR of x5% in revenue and x6% in earning till 20-- Drivers: Challenges: Growth in Wireless Subscriber Base Challenges faced in rural set up Drivers & Emergence of Solar Power as a Positive Increasing Pollution and Radiations Challenges Source of Energy Introduction 3G and Upcoming Cellular Technology Spectrum Scarcity Trend1 Trends & Trend2 Developments Development1 Development2 Major Players Bharat Sanchar Nigam Ltd. Bharti Infratel Ltd. GTL Infrastructure Ltd. Competition Indus Towers Ltd. Reliance Infratel Ltd. Viom Networks Ltd. TELECOM TOWERS IN INDIA 2012.PPT 2
  • 3. •Introduction •Market Overview •Scope in India •Drivers & Challenges •Major Telecom Tower Companies Other Telecom Tower Companies •Mergers & Acquisitions •Trends & Developments •Strategic Recommendations •Appendix TELECOM TOWERS IN INDIA 2012.PPT 3
  • 4. Introduction Telecom Industry Overview Indian telecom sector is the x1 largest sector in the world and x2 largest among the Asian emerging economies The telecommunication sector in India has been the major contributor to the country’s growth, accounting for around x3% of the total GDP in FY-- Telecommunication Industry Sub-Vertical1 Sub-Vertical2 Sub-Vertical3 Sub-Vertical4 Sub-Vertical5 • Sub-Vertical3 consists of service deployment facilities and equipments • Telecom towers are one of the prime components of Sub-Vertical3 • India being an enormous country with rapidly increasing colossal subscriber base across the country, deployment of telecom towers will be essential to reach every corner of the nation SAMPLE • Telecom towers can be broadly categorized in two types, type1 and Roof Type Tower Source: TELECOM TOWERS IN INDIA 2012.PPT 4
  • 5. Demand for telecom towers is high resulting in a rapidly growing industry and emergence of lucrative tower business Market Overview – India • Growth in mobile subscribers in India over the last few years has created huge opportunities for the telecom infrastructure industry • In FY 20-- alone, x1 telecom towers were added, taking the total no. of towers in the country to x2 • In terms of revenue, market size of telecom tower vertical is estimated at INR x3-x4 bn, which excludes reasource1 and reasource2 billing The market is expected to grow at a CAGR of x5% in revenue and x6% in earning till 20-- • All leading mobile service operators are expanding and increasing their coverage by increasing their network, increase coverage through tower sharing and using independent tower networks • The growing market for towers is also attracting the attention of vertical1 to invest in the companies • The commercial terms between the tower company and its tenants are governed by Master Service Agreements (MSA) Telecom Tower Requirements - India Towers (‘000s) 1.500 1.000 +30% 500 0 20-- 20-- 20-- 20-- 20--e 20--e 20--e 20--e Note: The figures are for the respective financial years Source: TELECOM TOWERS IN INDIA 2012.PPT 5
  • 6. Market share of Telecom Tower Companies - India Player1 Player2 Player3 Player4 Player5 Player6 Player7 SAMPLE • Company1 holds majority of the telecom tower market in India • The major y1 companies hold around y2% of the market • Rest of the y3% market is shared by various specialty1 and specialty2 owned tower companies Source: TELECOM TOWERS IN INDIA 2012.PPT 6
  • 7. Infrastructure sharing takes place at two levels – level1 and level2 Types of Infrastructure Sharing level1 level2 • aaaaaaaaaa • aaaaaaaaaa • bbbbbbbbb • bbbbbbbbb • ccccccccccc • ccccccccccc X X Benefits of Infrastructure Sharing • aaaaaaaaaa • bbbbbbbbb • ccccccccccc Source: TELECOM TOWERS IN INDIA 2012.PPT 7
  • 8. SWOT Analysis of Telecom Tower Sharing in India Strengths Weaknesses • aaaaaaaaaa • aaaaaaaaaa • bbbbbbbbb • bbbbbbbbb • ccccccccccc • ccccccccccc SWOT Analysis Opportunities Threats • aaaaaaaaaa • aaaaaaaaaa • bbbbbbbbb • bbbbbbbbb • ccccccccccc • ccccccccccc Source: TELECOM TOWERS IN INDIA 2012.PPT 8
  • 9. Drivers & Challenges – Summary Drivers Challenges Growth in Wireless Subscriber Base Challenges faced in rural set up Introduction 3G and Upcoming Cellular Technology Increasing Pollution and Radiations Spectrum Scarcity Emergence of Solar Power as a Positive Source of Energy TELECOM TOWERS IN INDIA 2012.PPT 9
  • 10. Public: Domestic Company – Company1 (-/-) Company Information Offices and Centres – India Adress line1 Corporate Address Adress line2 City. Country Tel No. +91- --- - ----- City Name Fax No. ++91- --- - ----- Website www.------.com Year of Incorporation 19-- Ticker Symbol ------ Stock Exchange Exchange1 Head Office Products and Services Category Products/Services Key People •Passive Infrastructure Solutions •Tower Operations Center Name Designation Primary Products •Infratel Enterprise Suite Mr. X Chief Executive Officer •Advantage Infratel Mr. Y Chief Financial Officer •Shared Infrastructure Mr. Z Chief Operating Officer Source: TELECOM TOWERS IN INDIA 2012.PPT 10
  • 11. Public: Domestic Company – Company1 (-/-) Financial Snapshot Key Ratios Revenue Profit y-o-y change Total Income Net Profit/Loss Particulars 2011 2010 2009 2008 INR mn INR mn (2011-10) c4 Profitability Ratios 150 8 Operating Margin 2.23 0.74% -1.49% -9.59% -10.70% c2 c3 6 100 Net Margin -34.74 -35.26% -0.51% 1.00% -37.12% c1 4 Profit Before Tax Margin -53.05 -53.57% -0.51% -25.32% -12.44% 50 Return on Equity -10.93 -11.06% -0.14% 0.21% -5.79% 2 Return on Capital Employed 0.18 0.06% -0.12% -0.55% -0.48% 0 0 Return on Working Capital 78.72 77.98% -0.74% 0.18% -3.99% 20-- 20-- 20-- 20-- Return on Assets -2.26 -2.29% -0.04% 0.05% -1.56% Return on Fixed Assets -2.88 -2.94% -0.06% 0.09% -2.98% Financial Summary Cost Ratios • The company incurred a net profit of INR a1 mn in FY 20--, as Operating costs (% of Sales) -2.95 99.22% 102.16% 112.14% 113.76% compared to net profit of INR a2 mn in FY 20-- Administration costs (% of 1.04 18.03% 17.00% 15.75% 18.00% Sales) • The company reported total income of INR a3 mn in FY 20--, Interest costs (% of Sales) 20.57 63.33% 42.77% 45.59% 29.69% registering an increase of a4 per cent over FY 20-- Liquidity Ratios • The company earned an operating margin of a5 per cent in FY 20--, Current Ratio -54.82% 0.82 1.81 4.42 7.13 an decrease of a6 percentage points over FY 20-- Cash Ratio -96.41% 0.19 5.34 2.99 5.66 • The company reported debt to equity ratio of a7 in FY 20--, an Leverage Ratios increase of a8 per cent over FY 20-- Debt to Equity Ratio 45.86% 3.82 2.62 2.92 2.72 Debt to Capital Ratio 6.85% 0.75 0.70 0.72 0.71 Key Financial Performance Indicators Interest Coverage Ratio 124.52% 0.01 -0.05 -0.27 -0.46 Indicators Value (--/--/20--) Efficiency Ratios Market Capitalization (INR mn) 10,985 Fixed Asset Turnover -9.25% 0.08 0.09 0.07 0.06 Asset Turnover 18.69% 0.06 0.05 0.04 0.03 Total Enterprise Value (INR mn) 87,544 Current Asset Turnover 5.19% 0.47 0.45 0.11 0.07 EPS (INR) 48.39 Working Capital Turnover -308.15% -2.08 1.00 0.14 0.08 PE Ratio (Absolute) 66.9 Capital Employed Turnover 58.09% 0.29 0.19 0.16 0.12 Source: Improved Decline TELECOM TOWERS IN INDIA 2012.PPT 11
  • 12. Public: Domestic Company – Company1 (-/-) Key Business Segments Key Geographic Segments Product1 Product2 Product3 India Outside India 100% 100% 50% 50% 0% 0% 20-- 20-- 20-- 20-- 20-- 20-- 20-- 20-- Key Information Description Details • aaaaaaaaaa Overview • bbbbbbbbb • ccccccccccc • It owns, deploys, and manages telecom towers & communication structures for telecom operators as Operations well as wireless service providers Source: TELECOM TOWERS IN INDIA 2012.PPT 12
  • 13. Some Other Telecom Tower Companies (-/-) Company2 Business Highlights • aaaaaaaaaa • bbbbbbbbb • Its products include telecom towers, transmission towers, substation structures, monopoles and high masts, windmill towers, broadcast towers, and telecom shelters • It serves customers in telecom, transmission and distribution, and special structures markets • ccccccccccc Company3 Business Highlights • aaaaaaaaaa SAMPLE • bbbbbbbbb • It offers Build-Operate-Lease services to design, acquire sites, procure and build the passive infrastructure for cell sites • ddddddddd • eeeeeeeeee • Also an independent provider of passive telecom infrastructure, offering tower space and active electronics space to multiple operators at its owned sites Source: TELECOM TOWERS IN INDIA 2012.PPT 13
  • 14. Mergers & Acquisitions (20-- - 20--) Announced Deal Type Target Buyer/Investor(s) Seller(s) Deal Size (INR) Status Completed/ Month, 20-- Acquisition Target1 Buyer1 Seller1 x1 bn Expected Completed/ Month, 20-- De-acquisition Target2 Buyer2 Seller2 x2 bn Expected Completed/ Month, 20-- Merger Target3 Buyer3 Seller3 x3 bn Expected Completed/ Month, 20-- Merger Target4 Buyer4 Seller4 x4 bn Expected Completed/ Month, 20-- Acquisition Target5 Buyer5 Seller5 x5 bn Expected Completed/ Month, 20-- Acquisition Target6 Buyer6 Seller6 x6 bn Expected Completed/ Month, 20-- Acquisition Target7 Buyer7 Seller7 x7 bn Expected Source: TELECOM TOWERS IN INDIA 2012.PPT 14
  • 15. Trends & Developments Introduction of • aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa Biometrics in Trend1 • bbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbb Education • ccccccccccccccccccccccccccccccccccccccccccccccccccccc Biometric ID Cards • aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa for Public Trend2 • bbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbb Transportation • ccccccccccccccccccccccccccccccccccccccccccccccccccccc Biometrics • aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa Application in Development1 • bbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbb Customs • ccccccccccccccccccccccccccccccccccccccccccccccccccccc • aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa Development2 • bbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbbb • ccccccccccccccccccccccccccccccccccccccccccccccccccccc Source: TELECOM TOWERS IN INDIA 2012.PPT 15
  • 16. Strategic Recommendations (-/-) • aaaaaaaaaaaaaaaaaaaaa • bbbbbbbbbbbbbbbbbbbbb Strategic Recommendation1 • aaaaaaaaaa • bbbbbbbb • ccccccccc Strategic Recommendation2 • aaaaaaaaaa • bbbbbbbb • ccccccccc Source: TELECOM TOWERS IN INDIA 2012.PPT 16
  • 17. Appendix Ratio Calculations Ratio Calculations (Operating Current Assets / Current Operating Margin Current Ratio Income/Revenues)*100 Liabilities Net Margin (Net Profit / Revenues) *100 {(Cash & Bank Balance + Cash Ratio Marketable Securities) / Current (Income Before Tax / Revenues Liabilities)} Profit Before Tax Margin *100 Total Liabilities / Shareholders Debt to Equity (Net Income / Shareholders Equity Return on Equity (ROE) Equity)*100 {Total Debt / (Shareholders Debt to Capital Ratio EBIT / (Total Assets – Current Equity + Total Debt)} Return on Capital (ROCE) Liabilities)*100 Interest Coverage Ratio EBIT / Interest Expense (Net Income / Working Capital) Return on Working Capital *100 Fixed Asset Turnover Sales / Fixed Assets Return on Assets (Net Income / Total Assets)*100 Asset Turnover Sales / Total Assets Return on Fixed Assets (Net Income / Fixed Assets) *100 (Operating Expenses / Sales) Current Asset Turnover Sales / Current Assets Operating Costs (% of Sales) *100 Administration Costs (% of (Administrative Expenses / Sales) Working Capital Turnover Sales / Working Capital Sales) *100 Interest Costs (% of Sales) (Interest Expenses / Sales) *100 Capital Employed Turnover Sales / Shareholders Equity TELECOM TOWERS IN INDIA 2012.PPT 17
  • 18. Thank you for the attention Telecom Tower in India report is a part of Research on India’s Telecommunications Series. For more detailed information or customized research requirements please contact: Kalyan Banga Phone: +91 33 4064 6215 E-Mail: kalyan.banga@netscribes.com Research on India is a product of Netscribes (India) Pvt. Ltd. Research on India is dedicated to disseminating information and providing quick insights on “hot” industries in India and other emerging markets. Track our new releases and major updates in these industries on About Netscribes Netscribes is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one-stop shop designed to fulfil clients’ profitability and growth objectives. Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India, Netscribes (India) Pvt. Ltd. or “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction. TELECOM TOWERS IN INDIA 2012.PPT 18