Dear All,
Forwarding you the Result Flash on Bharti Airtel for 4QFY2011.
Bharti Airtel reported its 4QFY2011 numbers which were marginally below street as well as our expectation at revenue front but lower on PAT front because of one off expenses in Africa operaions. The consolidated revenues stood at `16,265cr (vs. our estimate of `16,501cr) with 3.2% qoq growth. The revenues from mobile services for India came in at `9,495cr (vs. our estimate of `9,179cr) on the back of maintained MoU at 449 (vs our estimate of 441). ARPM for India business came saw a dip of 2.2% qoq to 0.43 `/min (vs. our estimate of 0.44 `/min). The Zain Africa contribution to revenues stood at `4,181cr due to MoU slipping by 4% qoq to 115min whereas ARPM inched up to 6.2US$c/min (as against 6.1 US$c/min in 3QFY2011). At operating front, EBITDA margin of India mobile business declined by 160bp to 33.3% whereas other businesses like Telemedia and Enterprise posted increase in EBITDA margins by 60bp and 420bp to 45.2% and 25.7%, respectively. Mobile Africa business also posted 160bp expansion in EBITDA margins at 26.4%. However, EBIT margin for mobile Africa business stood at 6% which dragged down company’s overall profitability. Consolidated EBITDA margin stood at 33.5%, expansion of 185bp qoq. PAT came in lower at `1,401cr (vs. our estimate of `1,625cr) due to poor net profitability of Africa operations.
Exhibit 1: Key Financials (IFRS, Consolidated)
| (Rs cr) | 4QFY11 | 4QFY11E | % Var | 3QFY11 | % chg qoq | 4QFY10 | % chg yoy |
| Net sales | 16265 | 16501 | (1.4) | 15,756 | 3.2 | 10,749 | 51.3 |
| EBITDA | 5444 | 5347 | 1.8 | 4,982 | 9.3 | 4,083 | 33.3 |
| EBITDA margin(%) | 33.5 | 32.4 | 107bp | 31.6 | 185bp | 38.0 | (451)bp |
| PAT | 1,401 | 1,626 | (13.8) | 1,304 | 7.5 | 2,045 | (31.5) |
Exhibit 2: Key Performance Indicators (Mobile India business)
| Particulars | 4QFY11 | 4QFY11E | % Var | 3QFY11 | % chg qoq | 4QFY10 | % chg yoy |
| ARPM (Rs/min) | 0.43 | 0.44 | (2.8) | 0.44 | (2.7) | 0.47 | (8.5) |
| MOU (mins) | 449 | 441 | 1.7 | 449 | 0.0 | 468 | (4.0) |
| ARPU (Rs) | 194 | 194 | (0.2) | 198 | (2.2) | 220 | (11.7) |
| EPM (Rs/min) | 0.17 | 0.17 | - | 0.16 | 3.5 | 0.17 | (5.1) |
| Subscriber base (mn) | 161.0 | 161.0 | - | 152.5 | 5.6 | 127.6 | 26.2 |
Operationally, the overall results were impressive. The stock is currently under review and we will be releasing a detailed result update post the concall.
If you have any further queries, feel free to call us on 022 39357600, Extn: 6865 or mail us at advisory@angelbroking.com
With best regards,
Fundamental Advisory Desk
Angel Broking
Akruti Star,6th Floor, Road No.7,MIDC, Andheri (E),Mumbai – 93.
Call : (91) (022) 39357600 Ext. 6865
Website : www.angelbroking.com
Disclaimer: Ours is an advisory role. The final decision and consequences based on our information is solely yours. Moreover, in keeping with regulatory guidelines, we do not guarantee any returns on investments. Prospective investors and others are cautioned that any forward-looking statements are not predictions and may be subject to change without notice.
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