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Stock IdeaBharti Airtel Ltd.

1Bajaj Capital Centre for Investment Research

Vol. 6 / 11-12 June 18, 2011

Buy CMP: 380.35 Target: 450.0

BHARTI AIRTEL LTD. Upside: 18.3 % Horizon: 12 MAnalyst: Atul Kanwar

Phone: +91 11 66272300 Ext: 651

Email: [email protected]

Head of Research: Alok Agarwala

E-mail: [email protected]

Key Data

Sector Telecom Services

Face value (Rs.) 5.0

52-week high/low (Rs.) 400.1 / 259.5

Market cap (Rs. cr.) 144439.1

Book value (Rs.) 124.8

Price / book value 3.0

PE ratio (TTM) 24.5

Market cap / sales 2.4

Dividend (%) 20

Average daily volume (1 Y) 5579290

Beta 0.8

1 year return (%) 42.4

Shareholding Pattern

Source: BSE. As on Mar 31, 2010

Stock Performance

About the Company

Bharti Airtel is the largest wireless service provider in our country and the 5 th largest integratedtelecom operator in the world. It has presence in all the 22 telecom circles in India and operationsin Srilanka, Bangladesh and Africa. The company provides its wireless services under the GSM

(Global System for Mobile Communication) technology. It also offers broadband, IPTV (InterneProtocol Television) & Digital TV services. The company had an aggregate of 220.9 millionsubscribers as of March 31, 2011 including 211.9 million mobile services customers. Bharti Airtegives an integrated suite of telecom solutions to its enterprise customers, in addition to providinglong distance connectivity both nationally and internationally. All these services are renderedunder a unified brand Airtel. The company also deploys, owns and manages passiveinfrastructure pertaining to telecom operations under its subsidiary Bharti Infratel Ltd that alsoowns 42% of Indus Towers Ltd.

Investment Rationale

India is the worlds fastest growing mobile telecom services marketIndia is the fastest growing wireless market in the world and has the second largest mobile service

connections after China. In India, the customer base of the mobile telecom service providersincreased by 20.2 million in March 2011, taking the total number of mobile subscriptions to morethan 811.6 million. This includes 66.3% urban and 33.7% rural subscribers. The total telecomcustomer base has increased to 846.3 million and the overall tele-density in the country hasreached 70.9. The industry is expected to reach a size of Rs 344,921 cr by 2012 at a growth rate ofover 26%. India is expected to have 1.16 billion mobile subscribers by 2013 and it is expected toovertake China.

3G services to be a growth driver

Bharti Airtel had bagged 3G spectrum in 13 out of the 22 telecom circles through an auction heldlast year, for Rs 12,295 cr. These 13 circles have 65-70% of the companys 2G subscriber baseThe company has already launched 3G services in many cities. The initial response has beenoverwhelming and Airtel is the market leader with 3 million 3G customers out of the total 9million users of this service. The company plans to offer services like video call, live streaming ofvideo, high speed internet, mobile TV etc.in the beginning. This service, a premium offering isexpected to stabilize the companys ARPU (Average Revenue Per User) though the voicetelephony and SMS are being provided by the company at prices that are at par with 2G. The nonvoice revenue contributes ~12% to the total revenues in India, compared to 25-30% in developedmarkets and it is expected to grow in the years going forward. For Bharti Airtel, the share of valueadded revenues in the total revenues increased to 15.0% in Q4FY11 compared to 13.8% inQ3FY11. 3G services would further increase the Value Added Services (VAS) share in mobilityrevenue. The company plans to generate one fourth of its sales from non voice revenues over thenext two or three years. This shift to non-voice and also non-SMS revenues is already visible asSMS services that used to contribute 3/4 th to the non voice revenue a year back, just contributes1/4th now.

68.3%

17.2%

8.7%

5.8%

Promoter FII DII Others

80

90

100

110

120

130

140150

Bharti Airtel NSE
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]

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In Q4FY11, Telemedia services subscribers

have grown to 3.3 million and those of Digital

TV services to 5.7 million, a growth of 1%

and 15% QoQ respectively. Airtelssubscriber base in Bangladesh and Srilanka

grew ~10% QoQ to 5.5 million as on Mar 31,

2011.

The total number of towers under Bharti Infratel has grown by 7.3% in the last one

year.

The revenues from passive infrastructure

services were Rs 2201.0 cr in Q4FY11, as

compared to Rs 1945.9 cr. in Q4FY10, a

growth of 13.1% YoY. The operating profit

showed a growth of 12.9% at Rs 815.3 cr, up

from Rs 722.4 cr for the same period.

Airtels fast growing customer base

Bharti Airtel crossed the significant milestone of 200 million customers for all territories duringthe quarter ended December, 2010. The companys total subscriber base has grown by 65.8% inthe last calendar year. For March 2011, the company led other mobile service providers to add 3.2million users in India, taking its mobile service subscriber base to 162.2 million in India.

Subscriber base: quarterly growth

The advantage of passive infrastructure services

Bharti Infratel: Bharti Infratel, the companys subsidiary has 32,792 towers across 18 states and11 telecom circles at the end of Q4FY11. The sharing factor for Bharti Infratels towers for thelatest quarter was 1.73 times.

Bharti Infratel (standalone): number of towers & sharing factor

Source: Company

Indus Towers: Indus Towers is a joint venture between Bharti Infratel, Vodafone and Idea Itprovides infrastructure services in 16 service areas. Sharing factor for Indus in Q4FY11 was 1.83times. Indus benefits from assured tenancy from its promoters while Bharti Airtel benefits from thereduced capital expenditure, revenue maximization and the embedded value of the shareholdingIndus Towers has recently achieved a significant milestone of 200,000 tenancies. FurtherVodafone Essar is contemplating selling around 7,000 towers with at least one tenant each toBharti Infratel or Indus Towers for a price between Rs 3200-3500 cr.

137.0

183.4194.8

207.8220.9

9.3%

33.9%

6.2% 6.7% 6.3%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

0.0

50.0

100.0

150.0

200.0

250.0

Q4FY10 Q1FY11 Q2FY11 Q3FY11 Q4FY11

Subscriber base (in millions) % Growth (QoQ)

29,806

30,568

31,196

31,831

32,424

32,792

1.57

1.62

1.65 1.65

1.68

1.73

1.5

1.5

1.6

1.6

1.6

1.6

1.6

1.71.7

1.7

28,000

28,500

29,000

29,500

30,000

30,500

31,000

31,500

32,000

32,500

33,000

33,500

Q3FY10 Q4FY10 Q1FY11 Q2FY11 Q3FY11 Q4FY11

Total number of towers Sharing factor

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Indus is the largest independent tower

company in the world having about 108,586

towers under its management as on Mar 31,

2011.

The total number of towers under Indus has

grown by 5.5% in the last one year.

The broadband connectivity has found the

pride of place in the governments to-do list

because studies have shown that for every

10% increase in internet penetration, GDP

climbs by 1.38%.

Indus Towers: shareholding

Source: Company

Indus Towers: number of towers & sharing factor

Source: Company

Opportunities in the telemedia services

Bharti Airtel has a large presence in the telemedia services that include fixed line, broadband & the

newly introduced IPTV. Telemedia services had a customer base of 3.3 million as of March 31

2011. Total net additions in subscriber base was ~39,000 in Q4FY11. ARPU for telemedia service

was Rs 934 per month. These services contributed Rs 917.8 cr in Q4FY11 to the overall revenues

of the company and had an EBITDA margin of 45.2%. Airtel Fixed line and DSL (Digita

Subscriber Line) was available in 87 top cities in India as on Dec 31, 2011. Broadband penetration

in India is approximately 1% with a mere 11.9 million broadband connections. Airtel is expected

to benefit from the expected high growth in the telemedia services in the coming years as the

broadband revolution is forecasted to follow the wireless revolution in India.

New greenfield entrants facing significant challenge

Greenfield telecom service providers are facing a tough time with operators like Uninor, Sistema

Shyam, EtisalatDB, Videocon, Stel and Loop Telecom garnering a miniscule subscriber market

share. It looks inevitable that in the long run, merger with the larger companies remains the most

probable outcome for most of these operators. Bharti is likely to benefit from tapering competitive

pressure on the domestic front, though it is tough to put an exact timeline to the occurrence of this

event.

42%

42%

16%

Bharti Infratel Vodafone Idea

102,696102,938

104,901

106,438

107,789108,586

1.661.71

1.75

1.78

1.80

1.83

1.6

1.6

1.6

1.7

1.7

1.7

1.7

1.7

1.8

1.8

1.8

99,000

100,000

101,000

102,000

103,000

104,000

105,000

106,000

107,000

108,000

109,000

110,000


Total number of towers Sharing factor

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The total subscriber base in Africa grew 4.9%

to 44.206 million in Q4FY11 from 42.124

million in Q3FY11.

Airtel only covers 16 countries and ~44% of

Africas population.

Only one out of three persons owns a mobile

in Africa, compared with seven out of ten in

India.

The Africa opportunity

The acquisition of Zains African business has given geographical diversification to Bharti Airtel

Bharti is targeting 100 million subscribers by the end of FY2013, from its business in this

continent. It plans to increase its revenues to US$ 5 billion and EBITDA to US$ 2 billion by the

end of the next financial year. The rest of the African countries apart from that covered by Zain,

are presently untouched by Airtel and present a huge opportunity in the future. The turnaround in

Bhartis Africa business has begun. Despite being involved in a price war in several Africancountries, revenues from Africa operations stood at US$ 924 million for Q4FY11 up 1.4% QoQ

The EBITDA stood at US$ 224 million. The EBITDA margin was at 24.2%. The net profit stood

at US$ -92 million. The operating free cash flows were at US$ -158 million. The company has

increased its market share marginally in Africa in the March 2011 quarter. The ARPU came down

from US$ 7.3 to US$ 7.2 for the same period and the Average Minutes of Usage per user wen

down from 120 to 115. Bharti Airtel also has 3G licenses in 9 out of the 16 African countries it

operates in and offers this service in 8 countries. Airtel Zambia intends to launch 3G network in

the near future. The company is expecting more licenses in Africa in the next 6 months.

Airtels Africa coveragepopulation in million (2009)

Source: Company

Comparison: Airtels India & Africa business

Particulars India Africa

Mobile Penetration 70.9% 45%

Average Competitors 10 to 12 3 to 5

Business Model High usage, low pricing Low usage, high pricing

Minutes of Usage 449 115

ARPU (US$) ~ $ 4.3 ~ $ 7.2

ARPM (US cents) ~1 cent 6.2 cents

Source: BCCIR, Company

575

450

Airtel Africa

Non Airtel Africa

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The total minutes on network have increased

by 32% in Q4FY11 compared to Q4FY10.

The national average of active subscribers for

mobile service operators stands at 70.3%.

Airtel has ~20% more subscribers than its

closest competitors, Reliance Communication

& Vodafone. However, in CY2010 while

Bhartis Indian mobile subscriber base grew

by 28.3%, Aircel showed a growth of 61.7%,

Tatas mobile business grew by 46.9%, Idea

by 42%, Vodafone by 36% and Reliance

Communications by 34%. The total industry

growth was 35.3%.

Increasing Total Minutes on Network

Total minutes on network (million minutes)

Source: Company

Maximum number of active customers

According to a recent TRAI report, Bharti Airtel has 91.8% active customers. Idea cellular has90% active subscribers followed by Vodafone Essar at 76%, 66-68% for RelianceCommunications, 57% for BSNL, 49.7% for Tatas GSM business and 46.5% for their CDMAbusiness. New telecom service providers such as EtisalatDB, Stel, Uninor and Sistema Shyamhave less than 50% active customers. MTNL is at the bottom of the list with 35.6% activesubscribers in GSM and 27% in CDMA.

Focus on rural demand

Bharti Airtel has shifted focus to the rural demand in India. Revenue growth going forward for the

company, apart from 3G and Africa, would be driven by the rural demand in India. Rural India

constitutes 33.7% of Indias overall wireless subscriber base. Rural penetration remains low in

India at less than 25%. Bharti Airtel at present has a high rural market share of ~25%.

Peer Analysis

Telecom service providers: mobile subscriber base (million)March 2011

Source: TRAI

Q4FY10 Q1FY11 Q2FY11 Q3FY11 Q4FY11

182,001

206,213216,373

227,262240,245

162.2

135.7 134.5

91.6 89.5 89.1

54.8 54.2

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One out of every five mobile customer is a

Airtel subscriber.

ARPU of the mobile service providers has

been declining steadily.

Bharti Airtel has shown a steady decline in

ARPM due to the tariff wars in the mobile

services industry.

Mobile service providers: customer market share (%)March 2011

Source: TRAI

Mobile service providers: ARPU (Rs) comparison

Source: Respective Company

20.0%

16.7% 16.6%

11.3% 11.0% 11.0%

6.8% 6.6%

Q1FY11 Q2FY11 Q3FY11 Q4FY11

215202 198 194

182167 168 161

130122

111 107

Airtel Idea RelCom

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Multiple SIM usage has impacted the MOUs

of the players in the wireless telecom industry.

Bharti Airtel enjoys far superior PBIDT &

APAT margins than its peers. It also has a

much higher RONW than its competitors.

Mobile number portability is both a concern

and an opportunity for the company.

Mobile service providers: MOU (min) comparison

Source: Respective Company

Telecom service providers: comparison (consolidated financials in Rs cr.)

CompanyNet

Sales APAT PBIDTM% APATM% PE P/BV P/SMktCap

Bharti Airtel 59467.2 5904.9 33.9 9.9 24.5 3.0 2.4 144439.1

Reliance Comm. 22430.4 1505.8 40.5 6.7 13.0 0.4 0.9 19628.9

Idea Cellular 15503.2 898.7 24.5 5.8 28.5 2.1 1.7 25651.5

Tata Comm. 11932.0 -775.2 12.0 -6.5 0.0 1.7 0.5 5855.3

Tata Tele (Mah) 2303.1 80.2 50.8 3.5 38.8 -4.5 1.4 3111.4P/E, P/BV, P/S & Mkt Cap figures are as on June 17, 2011. Net Sales, APAT, PBIDTM (%), APATM (%) statistics are for FY2011.

Key Concerns

Mobile Number Portability (MNP)While some subscibers of the company can migrate to other telecom service providers attracted bylower prices, others can get attracted to the company due to its record of providing excellentservice. MNP service that was launched in Haryana on Nov 25, 2010 is available throughout Indiasince Jan 20, 2011.

Temporary setback to telecom tower businessTelecom towers which act as emitting points for cell phone signals, have not been getting added

tenancy. Launch of 3G services and expansion plans of new telecom operators like UninorVideocon, Loop Telecom, Etisalat etc. were expected to create a surge in tower tenancy. Butuncertainty over license conditions for new operators has put network rollouts on hold, thusaffecting the growth of the tower business temporarily.

TRAI recommendation for additional 2G spectrum payment

Telecom Regulatory Authority of India (TRAI) has issued a recommendation that companiesholding over 6.2 MHz of spectrum or radio frequencies would have to pay for the additionalspectrum from April 2010 onwards. Accordingly Airtel would be required to pay Rs 4,000 cr. ifthese recommendations are accepted by the government.

Q1FY11 Q2FY11 Q3FY11 Q4FY11

480454 449 449

415 394 401 397

295 276251 241

Airtel Idea RelCom

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Due to the new telecom service providers

offering rock bottom rates in order to entice

customers from the established players, all

the entrenched players except Tata

Teleservices have lost market share in the

last one year period.

Decline in ARPUs is mainly because of theintense competition, resulting in steep fall in

mobile rates and also due to the companysthrust on the rural customers. In Q4FY11,

Bharti AirtelIndias Average MOU (Minutesof Use) per user was 449 minutes, down -4%

YoY from 468 minutes in Q4FY10. ARPM

(Average Rate Per Minute) was at 43.1 paise,

down -8% from 47 paise in the last quarter of

FY10. ARPM is expected to improve going

forward due to the increased use of 3G

services and the industry players hiking the

low unsustainable 2G tariffs.

Bharti Airtel has already launched 3G

services in many cities including Delhi &

Mumbai garnering ~3 million 3G subscribers.

The company is a market leader in this

segment also. This represents a market share

of appox. 30.0% out of a total ~10 mn 3G

subscribers in India.

Decline in India Customer Market Share (CMS)

Decline in customer market share (in million)

Source: Company

Decline in ARPUs (India)

ARPU (Average Revenue Per User) - Rs

Source: Company

Conclusion

India is the fastest growing telecom market in the world. The mobile subscriber base of BhartiAirtel in India is growing at a scorching pace of ~3 million subscribers per month. The companyalso has the largest number of active customers (~92%) among all mobile telecom operators. Thecompany is all set to exploit the 3G opportunity in India, as it launches these premium servicesacross all 13 circles that it had bagged in the auction. This is expected to accelerate the increase incompanys non voice revenue. Bhartis Africa operations have been stabilizing with subscribersgrowing steadily and its market share in the continent improving. The company is also focusing onrural customers. While one out of every 5 subscriber nationally is a Airtel customer, in case ofrural customers this ratio is one out of four. 3G, Africa operations and the rural markets in Indiaare going to be the growth drivers for the company going ahead. The mobile rates have already

reached rock bottom with the new players running out of steam. This presents acquisitionopportunities for Bharti in the near future. The expected broadband revolution is set to boost therevenues of the companys telemedia services arm, going further. Though BhartisARPUs havebeen declining, they are expected to stabilize at the present levels.Bharti Airtel has a market capitalization of Rs 144439.1 cr. and is trading at a share price of Rs.380.35. The consolidated TTM EPS is Rs. 15.6 translating into a TTM PE of 24.5. The price tobook value stands at 3.0. The stock is an attractive buy considering the growth prospects of theindustry as well as the company.

We recommend a BUY on the stock with an investment horizon of 12 months and targe

price of Rs. 450.


22.7% 21.8% 21.5% 20.8% 20.3% 20.0%


230220

215

202 198 194

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A Snapshot of Airtels World

Sno. Country Remarks

1. India Airtel is the largest telecom service provider in India with 220.9 million subscribers at the end of March 2011.2. Bangladesh Airtel Bangladesh had about 3.2 million customers as on Dec 31, 2010.3. Sri Lanka Airtel Lanka that had started operations on Jan 12, 2009, had ~1.8 million customers at the end of last year.4. Burkina Faso Airtel Burkina Faso is the dominant player with 1.43 million customers and a 50% market share.5. Chad Airtel Chad is the market leader with 69% market share.6. Democratic Republic of Congo -7. Gabon Airtel Gabon has 829,000 customers and it the leader with a market share of 61%.8. Ghana Airtel Ghana had about 1.76 million customers at the end of CY2010.9. Kenya Airtel Kenya is the second largest operator in the country with 4 million customers.10. Madagascar Airtel is the second largest telecom service provider with 1.4 million customers and a 39% market share.11. Malawi Airtel Malawi is the largest operator with a 72% market share.12. Niger Airtel Niger is the market leader with a 68% market share.13. Nigeria Airtel Nigeria is the no. 3 player in the country with 15.8 million subscribers.14. Republic of Congo Airtel Congo is the market leader with 55% market share.15. Seychelles Airtel is the leading player with over 55% market share.16. Sierra Leone Airtel Sierra Leone is the leading mobile service operator in the country.17. Tanzania Airtel Tanzania is the market leader with a 38% market share.18. Uganda Airtel Uganda is the no. 2 player with a market share of 38%.19. Zambia Bharti Airtel controlled Celtel Zambia is the top mobile phone company with a 70% market share.

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SWOT Analysis

Strengths

Largest telecom opeartor in India: Bharti Airtel is thelargest telecom service provider in India and the 5th largestintegrated telecom operator in the world.

Strong customer base growth: Bharti Airtel's subscriberbase has grown from 137.0 mn in Mar 2010 to 220.9 mn inMar 2011, a phenomenal growth of 61.2%.

3G service launch: The telecom operator has bagged 3Gspectrum in 13 out of the 22 circles in India and plans tooffer these services in all these circles (covering 65-70% ofits subscriber base) by the end of March 2011.

Large passive infrastructure: Bharti has 32,792 towersunder Bharti Infratel and 108,586 towers unders Indus at theend of FY2011.

Increase in total minutes on network: The total minuteson network have increased from 182,001 million minutes inQ4FY10 to 240,245 mn mins in Q4FY11.

Maximum number of active customers: Bharti Airtel has~92% active customers, the maximum in the industry.

Focus on rural sales: The company enjoys one-fourth ofthe rural market share and is focused on increasing it further.

Weaknesses

Decline in customer market share: Bharti Airtel'scustomer market share has declined to 20.0% in March 2011compared to 21.8% in March 2010. However, all the majortelecom service providers except Tata Teleservices havetaken a hit on their market share during this period due tothe new greenfield operators offering rock bottom prices

Decline in ARPU's: Due to the company's focus on therural markets, ARPU's have declined from Rs 220 inQ4FY10 to Rs 194 in Q4FY11.

Opportunities

India is the fastest growth mobile services market in theworld: The mobile connections in India increased by ~20million in March 2011 to reach 811.6 million. The highgrowth is expected to continue, going further.

New subcriber additions through MNP: Bharti Airtel hasthe opportunity of attracting subscribers of other telecomservice providers after the launch of Mobile NumberPortability (MNP) recently, as the company has a reputationof providing excellent services.

Future potential of telemedia services: The governmenthas a huge stake in the growth of these services as a 10%growth in the broadband services results in ~1.38% growthin the GDP of the country. This presents a good opportunityfor Airtel in the coming years.

Opportunities in Africa: Airtel is the dominant player ismost of the 16 Afrcan countries that it operates in. Theremaining countries in the continent, where the company hasno presence provide an opportunity for the future.

Possibilty of acquistions: The new greenfield operatorshave not been successful in acquiring a decent revenue andcustomer market share, inspite of offering lower prices. Thismay lead to an opportunity for the bigger plaerys like Bhartito acquire these businesses in the future.

Threats

MNP can be a double edged sword: Other telecom serviceproviders, especillay the new greenfield entrants could try toentice Airtel's customers through rock bottom prices.

Temperory setback to telecom tower growth: Due to theuncertainty faced by the new operators over licenseconditions, the new operators have put their network rollouton hold, thus affecting the tower business.

TRAI recommendation: Airtel would have to pay Rs4,000 cr. extra, if the TRAI recommendation of chargingthose telecom companies that hold more 2G spectrum than6.2 Mhz (from April 2010 onwards), are accepted.

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Financials

Income Statement (Quarterly): Standalone Rs. Cr.

Particulars Q4FY11 Q3FY11 Q4FY10 QoQ (%) YoY (%)

Net Sales 16265.4 15756.0 10749.1 3.2 51.3

Total Income 16304.2 15781.8 10806.1 3.3 50.9

Total Expenditure 10821.2 10774.6 6568.8 0.4 64.7

PBIDT 5483.0 5007.2 4237.3 9.5 29.4

PBIDT Margin % 33.7 31.8 39.4

Interest 682.6 747.0 0.0 -8.6 -

Depreciation 2970.2 2710.7 1695.3 9.6 75.2

Tax 499.6 336.6 341.5 48.4 46.3

APAT 1330.6 1212.9 2102.9 9.7 -36.7

APATM (%) 8.2 7.7 19.6

Financials (Annual): Standalone Rs. Cr.

Particulars 201103 201003 200903 200803 200703 2006035 yr CAGR

%

Share Capital 1898.8 1898.8 1898.2 1897.9 1895.9 1893.9

Networth 39614.8 28984.8 21664.4 11453.6 7340.2

Capital Employed 53020.5 43872.6 32338.0 16964.3 12234.3

Debt 10288.1 13517.1 9601.7 5285.9 4772.8

CWIP 2435.9 4143.7 3570.0 2470.9 2436.5

Inventory 48.4 96.3 114.2 91.2 38.1

Sundry Debtors 3182.5 2899.8 2839.8 1871.2 1114.0

Cash & Bank Balance 2578.6 2766.0 703.4 852.1 351.1

Revenues 59467.2 41829.5 37352.1 27012.2 18420.2 11664.1 38.5

Total Income 59601.8 43100.3 37949.6 27372.3 18598.7 11771.9 38.3

Total Expenditure 39431.8 25369.0 24182.7 16203.3 11192.3 7714.9 38.6

PBIDT 20170.0 17731.4 13766.8 11168.9 7406.4 4057.0 37.8

Interest 2181.3 636.5 503.1 386.0 279.4 229.6 56.9

Depreciation 10206.6 6199.4 4672.8 3471.4 2448.7 1481.9 47.1

PAT 5904.9 9361.5 8044.2 6495.4 4110.3 2054.6 23.5

Cash Flow from Operating Activities 15456.5 13711.6 12324.4 8466.4 4869.9

Cash Flow from Investing Activities -14703.1 -15175.4 -18432.7 -8342.5 -5302.9

Cash Flow from Financing Activities -1374.9 2064.8 5998.7 377.1 369.8

Free Cash Flows 2797.4 -3389.6 -5109.8 -3096.5 -2473.3

Dividend % 20.0 20.0 20.0 0.0 0.0 0.0

EPS - Adjusted (Rs.) 15.9 24.1 20.7 16.8 10.7 5.4

Debt-Equity Ratio 0.3 0.5 0.4 0.5 0.8

RoNW % 27.3 31.8 39.2 43.7 34.8

Asset Turnover Ratio 0.9 1.0 1.1 1.3 1.1

PBIDT Margin % 33.9 42.4 36.9 41.3 40.2 34.8

PAT Margin % 9.9 22.4 21.5 24.0 22.3 17.6

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Disclaimer:

This document has been prepared by Bajaj Capital Centre for Investment Research (BCCIR), a unit of Bajaj Capital Limited (BCL). BC L and its subsidiarie

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Disclosure of interest:

1. BCL and its affiliates have not received compensation from the company covered herein in the past twelve months for Issue Management, Capital

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2. Affiliates of BCL are currently not having any mandate from the subject company.

3. One of the Directors of Bajaj Capital Limited holds shares of this company.

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Bajaj Capital Centre for Investment Research

Bajaj Capital Ltd

97, Bajaj House, Nehru PlaceNew Delhi 110019

Tel 4169 3000, 4169 2900, Ext. 651Email: [email protected]
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