CMP Rs320, Target Rs375, Upside 17.2%
- Q1 revenues up 14% qoq, including partial contribution from Zain wef June 8; Ex-Zain revs rose 5% driven by 6% wireless and 5.3% Telemedia growth
- Provision for higher spectrum charge, salary hikes and Zain integration impacted EBIDTA %; Ex-spectrum provision, OPM fell 104bps
- MOU sports a 2.6% rise while pace of RPM decline slowest since Q4 FY09; Africa MOUs at 20% of India ops but ARPUs 60% higher
- Despite higher interest burden, adjusted PAT ex-derivative/FX fluctuation remained flat
- Tariff stability in FY12, Zain EBIDTA improvement key positives; retain BUY
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