Bharti Airtel (Q1 FY14)

India Infoline News Service | Mumbai |

Bharti Airtel adopted IFRS 11 under which JV accounting shifted from proportionate consolidation to equity method which impacted revenues, EBIDTA, free cash flow and net debt though left profit unchanged.

CMP Rs340, Target Rs360, Upside 4.5%
  • On a restated basis (to comply with IFRS 11), Q1 revenues up 3.6% qoq driven by 5.3% qoq growth in India mobile business

  • India voice RPM sport 4% qoq rise coupled with ~2% qoq traffic growth vs our forecast of 4% volume qoq

  • Africa revenues US$ decline ~5% qoq on regulatory changes and political unrest primarily in Nigeria though EBIDTA margins improve qoq

  • India business showing signs of stability along with prospect of modest RPM uptick but Africa operations still cloud consolidated performance; retain MP with revised 9-12 mth tgt of Rs360 (earlier Rs340)      

Result table
(Rs m)
Q1 FY14
Q4 FY13
% qoq
Q1 FY13
% yoy
Net sales
202,995
195,924
3.6
185,703
9.3
Access and IUC
(26,961)
(27,499)
(2.0)
(27,046)
(0.3)
Network opex
(46,700)
(45,354)
3.0
(41,545)
12.4
License fees
(18,219)
(16,933)
7.6
(16,300)
11.8
Staff
(10,926)
(10,435)
4.7
(8,917)
22.5
S G & A
(34,740)
(35,098)
(1.0)
(37,039)
(6.2)
Operating profit
65,449
60,605
8.0
54,856
19.3
OPM (%)
32.2
30.9
131 bps
29.5
270 bps
Depreciation
(38,470)
(38,004)
1.2
(35,901)
7.2
Interest
(6,338)
(11,158)
(43.2)
(7,367)
(14.0)
PBT
20,641
11,443
80.4
11,588
78.1
Tax
(9,684)
(7,255)
33.5
(4,543)
113.2
Effective tax rate (%)
55.2
63.4
-823 bps
39.2
1596 bps
Minority & Associate
(982)
898
-
577
-
Adjusted PAT
9,975
5,086
96.1
7,622
30.9
Adj. PAT margin (%)
4.9
2.6
232 bps
4.1
81 bps
Exceptional items
(3,087)
-
BSE 524.75 [7.75] ([1.46]%)
NSE 523.85 [8.85] ([1.66]%)

***Note: This is a NSE Chart

 

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