Bharti Airtel Company Analysis

Industry Profile : Being one of the fastest growing industry in India and having biggest number of user in all over world makes Indian telecom industry. Mobile Phone industry in India contribute $400 Billion in Indian GDP. Right now India is second largest smartphone market and all thanks to Jio phone, we are ready to make it largest. Before reliance Jio enter into market, there were many companies. But now the consolidation is going on. Reliance communication merge with MTS and promoter is now near to done deal with Aircel. Telenor, New Zealand based company sold business to Airtel. Vodafone Makes deal to merge with idea and Deconsolidation as losses in Indian market makes them vulnerable in home country. All thanks to reliance jio, India become largest data consumer all over the world. The growth is also fueled by Govt initiative to connect all villages via internet with Bharatnet. In second stage of Bharatnet, Private companies also permitted to bid increasing the user base further in rural area.

Company Profile :  Bharti Airtel, largest Company in Mobile telecom and second largest company in Landline. the company also provide Broadband and Subscription Television services. The company giving services in 20 countries including Asia and Africa. The company giving services to more than 200 million customers.

Shareholding :  As telecom sector is going through bad time, the shareholding is mainly promoter. Indian and foreign promoter holds 67.14%. Mutual funds holds 3.21%. Insurance companies hold 7.89% Foreign investors holds 15.22% Remain is with Public.

Financials and Ratios : 

 2010-112011-122012-132013-142014-152015-162016-17
Revenue38017.7041603.8045350.9049918.5055496.4060300.2062276.60
Net profit7716.905730.005096.306600.2013200.507546.50(9925.60)
NPM20.2913.7711.2313.2223.7812.51(15.93)
EPS20.3215.0913.4216.6933.0218.88(24.84)
Book value116.15130.15142.58166.93195.81211.25253.18
Dividend Payout4.926.627.4510.9011.657.20(4.02)
Dividend per Share1111.803.851.361
ROE17.4911.599.419.8916.868.93(9.80)
ROCE14.109.367.448.3412.765.62(6.36)
ROA10.787.135.796.7210.444.66(5.20)
Debt to Equity0.230.290.240.130.260.50.56
Asset turn over53.1151.7051.6050.8343.8937.2332.64

Future Prospects :  The competition from Reliance Jio is very large. Though the company is entered into Payment bank business, it is difficult to say that Customers like me will not go to Paytm and will come to Airtel. There is Indus Tower and Bharti Infrtel, Airtel DTH but their contribution in revenue is not large. Debt piling is very big issue plus the cost of Spectrum auction and other fixed costs are in billions of dollars. Only thing which can help the company is Soft-bank and their $100 billion Vision fund as they intended to invest in the company directly or indirectly.

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About Ashutosh Tilak

Tracking Indian Capital Market since 2010. Finance Student, On this blog I am writing about finance and Investing. You can contact me analystashu@gmail.com or @androidashu & @InsideFinanc on twitter