Bharti Infratel (Q1 FY14)

India Infoline News Service | Mumbai |

Q1 capex stood at ~Rs3.1bn as both tower roll out on standalone and consolidated basis slowed down qoq; FY14 capex guidance at Rs20bn

CMP Rs145, Target Rs180, Upside 24.1%
 
  • Bharti Infratel reported 8.5% yoy rise in Q1 revenues; adjusted for Indus Towers merger with Bharti Infratel Ventures (BIVL, a 100% subsidiary ofBharti Infratel) effective June 11, revenues would have grown 10.6% yoy but remained flat qoq
  • Adjusted for above Indus merger, EBIDTA margin would still be up 136bps qoq to 38.9% vs reported rise of 265bps qoq; consolidated tenancy remained flat qoq at 1.91x and standalone tower rentals dipped 0.4% qoq; Indus rentals however improved 1.7% qoq
  • Adjusted PAT jumped 12.3% qoq and ~51% yoy on lower tax rate and higher other income; depreciation declined qoq as actual depreciation lower than the IRU charges applied earlier.
  • Q1 capex stood at ~Rs3.1bn as both tower roll out on standalone and consolidated basis slowed down qoq; FY14 capex guidance at Rs20bn 
  • Post Indus merger with BIVL, we revise our FY14/15 estimates and in lieu of recent correction in the stock, upgrade Bharti Infratel to BUY with revised 9-12 mth target of Rs180 (earlier Rs190).
Results table
(Rs m)
Q1 FY14
Q4 FY13
% qoq
Q1 FY13
% yoy
Net sales
26,220
26,736
(1.9)
24,165
8.5
Power & fuel
(9,990)
(9,825)
1.7
(8,863)
12.7
Rent
(2,158)
(2,816)
(23.4)
(2,670)
(19.2)
Repair & maintenance
(2,232)
(2,322)
(3.9)
(2,183)
2.2
Staff
(866)
(807)
7.3
(805)
7.6
Other expenses
(424)
(917)
(53.8)
(785)
(46.0)
Operating profit
10,550
10,049
5.0
8,859
19.1
OPM (%)
40.2
37.6
265 bps
36.7
358 bps
Depreciation
(5,528)
(5,655)
(2.2)
(5,396)
2.4
Interest
(1,044)
(1,067)
(2.2)
(849)
23.0
Other income
1,469
1,369
7.3
543
170.5
PBT
5,447
4,696
16.0
3,157
72.5
Tax
(1,871)
(1,845)
1.4
(1,023)
82.9
Effective tax rate (%)
34.3
39.3
(494) bps
32.4
195 bps
Exceptional items
-
22
-
-
-
Adjusted PAT
3,576
2,873
24.5
2,134
67.6
Adj. PAT margin (%)
13.6
10.7
289 bps
8.8
481 bps
Reported PAT
3,576
2,873
24.5
2,134
67.6
Source: Company, India Infoline Research
 
Financial summary

Y/e 31 Mar (Rs m)
FY12
FY13
FY14E
FY15E
Revenues
94,521
102,720
110,281
118,368
yoy growth (%)
11.1
8.7
7.4
BSE 373.50 [8.45] ([2.21]%)
NSE 373.70 [8.65] ([2.26]%)

***Note: This is a NSE Chart

 

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