Done by ME and Classmates

1. Presented by
Md. Danish Ur Rahman
Md. Arshad Alam
Md. Nehal Ahmad
Shambhu Paul

2. Content
• Introduction to Bharti Airtel
• Financial Analysis
• Ratio Analysis

3. 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.

4. 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

5. FINANCIALS

6. 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

7. Sources of Funds
2011 2010 2009 2008 2007
• Equity share capital
1,898.80
1,898.77
1,898.24
1,897.91
1,895.93

8. 2011 2010 2009 2008 2007
• Share application money
278.60
186.09
116.22
57.63
30.00

9. Reserve & Surplus

10. Secure Loans

11. Unsecured Loans

12. Total

13. Fixed Assets

14. Less Accumulated Depreciation

15. Investments

16. Net Current Asset

17. Current Liabilities & Provisions

18. Total of C.A. & C.L.

19. Some Key highlights…
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
Income
Net Current Assets -5922.94 (Sep '08) (Mar '08)
Statement
Total Assets 26811.84 Quarterly Annual
Net Sales 8274.37 25703.51
Other
28.43 235.86
Income
PBDIT 3151.06 10736.89
Net Profit 1604.78 6244.20

20. 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

21. Profitability Ratios
Profitability 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

22. GROWTH!!!!!!!!!

23. Income and Expenditure(Rs. Cr)

24. Operating Profit (Rs. Cr.)

25. Customer Growth across the years
Airtel Subscriber
Year Overall Subscriber Base 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

26. Subscriber Growth
Group 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%

27. Stock Movement

28. Share Price Competitors Differentials
Company Name Last Price % Chg 52 wk 52 wk Market Cap
High Low (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

29. Net Sales Year End 2011
Company Net Sales
Last Price Change % Change
Name (Rs. cr)
Bharti Airtel 722.30 -20.00 -2.69 25,761.11
Reliance
249.20 10.00 4.18 14,792.05
Comm
Idea Cellular 53.50 0.05 0.09 6,719.99
MTNL 74.85 -1.95 -2.54 4,722.52
Tata Comm 495.15 2.60 0.53 3,283.30
TataTeleservi
20.15 0.40 2.03 1,707.19
ce
Tulip
501.20 67.85 15.66 1,216.44
Telecom
Spice Comm 36.00 3.40 10.43 957.85
HFCL Infotel 7.45 0.44 6.28 248.88

30. Net Profit
Company Name Last Price Change % Change Net Profit
(Rs. cr)
Bharti Airtel 722.30 -20.00 -2.69 6,244.19
Reliance Comm 249.20 10.00 4.18 2,586.45
Idea Cellular 53.50 0.05 0.09 1,044.36
MTNL 74.85 -1.95 -2.54 406.82
Spice Comm 36.00 3.40 10.43 380.13
Tata Comm 495.15 2.60 0.53 304.46
Tulip Telecom 501.20 67.85 15.66 187.27
Goldstone Infra 17.55 -0.40 -2.23 10.01
Northeast Sec 12.08 0.57 4.95 5.25
TataTeleservice 20.15 0.40 2.03 -125.74
HFCL Infotel 7.45 0.44 6.28 -142.54

31. Net Profit(Rs. Cr)

32. For the current year

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

34. Thank You!!!!!!!