Premium Essay

Airtel

In: Business and Management

Submitted By tutornoida
Words 5319
Pages 22
May 9, 2013

Result Update
KEY DATA Market Cap (INR bn) Market Cap (USD mn) 52 WK High / Low Avg Daily Volume (BSE) Face Value (INR) BSE Sensex Nifty BSE Code NSE Code Reuters Code Bloomberg Code Shareholding % Promoters MF/Banks/Indian FIs FII/ NRIs/ OCBs Indian Public Performance Chart 2Q 68.0 8.0 17.0 7.0 1295.2 23984.4 370 / 238 507834 5 19990 6069 532454 BHARTIARTL BRTI.BO BHARTI IN 3Q 68.0 8.0 18.0 6.0 4Q 69.0 9.0 17.0 5.0

CMP : INR 324 Rating : Buy Target : INR 410

Bharti Airtel
Margins contract due to higher network costs and fuel expenses… Operating matrics in India improves, while that of Africa disappoints … Voice realization in both India and Africa continues to remain under pressure, but higher AMOU in India is a major positive… Headline tariffs are set to improve…
Maintain 'Buy' rating on the stock with revised price target of Rs 410 Bharti Airtel's consolidated net profit during Q4FY13 missed our estimates as well as the consensus estimates due to price realization pressure in India & Africa, high network rollout costs and sharp rise in interest cost and higher tax expenses during the quarter. Although the number of subscribers on the company's network increased both in India and Africa resulting in higher total minutes on the network (TMOU), the realized revenue per minute (ARPM) continued to remain under pressure. The average revenue per user (ARPU) though increased due to increased data usage from its 3G user base and higher voice minutes of usage (AMOU) per subscriber per month during the quarter. Nevertheless pressure on price realization implies that the competitive intensity continues to be chronic despite lower number of operators per circle. Lately though there are signs that the price is trending up and operators are cutting back on promotional & discount offers and free minutes. So this bodes well for the incumbents in the months

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