BHARTI AIRTEL NSE-BHARTIARTL

CREDIT RESEARCH REPORT

2019 TEAM - 331

 CORPORATE
COMPANY SNAPSHOT BUSINESS DESCRIPTION
GOVERNANCE

AGENDA
INDUSTRY OVERVIEW &
FINANCIAL ANALYSIS CAPITAL STRUCTURE
COMPETITIVE ANALYSIS

INVESTMENT
LIQUIDITY ANALYSIS INVESTMENT SUMMARY
RECOMMENDATION
COMPANY SNAPSHOT
Key Financials (in Million INR):
Timeline
Parameter Mar’18 Change
(YoY)

Revenue 8,36,879 12%

PBT 32,670 58%

1995 1999 2001 2002 2003 2004 2005 2009 2015
Cash & Cash
28,468 388%
Eq.

Dividend 13 80%

Highlights:

• Second largest telecom operator in India based on number of subscribers (300 million+)
• Total number of employees worldwide: 20,793
• Diversified portfolio which includes wireless services, homes services, digital TV and payments bank among
others
• Promoter and Promoter group has a holding of 67.14% as on Mar’18
 CORPORATE
COMPANY SNAPSHOT BUSINESS DESCRIPTION
GOVERNANCE

AGENDA
INDUSTRY OVERVIEW &
FINANCIAL ANALYSIS CAPITAL STRUCTURE
COMPETITIVE ANALYSIS

INVESTMENT
LIQUIDITY ANALYSIS INVESTMENT SUMMARY
RECOMMENDATION
CAPITAL STRUCTURE
DEBT/EQUITY RATIO
Shareholding as on March 31, 2018
Insurance Others
2.1 2.1
Mutual Companies 2% 2
Funds and 6% 1.76 1.59
Units Trust of 1.59 1.6 Airtel
1.5 1.5
India 1.27 Vodafone Idea
7%
1 1.14
0.73
0.5
Financial Institutions, MAR '14 MAR '15 MAR '16 MAR '17 MAR '18
Banks and Foreign 783,483
Institutions LONG TERM DEBT/EQUITY RATIO
18%
Million INR
2.2
2.1 2.1

Promoter and 1.7

1.5 1.5
Promoter group Airtel
67% 1.3
1.2 1.1 1.3 1.2 Vodafone Idea
0.9
0.7 0.7
• A higher promoter shareholding is generally a MAR '14 MAR '15 MAR '16 MAR '17 MAR '18
good sign
• A strong shareholding of 67% by the promoter
and promoter group indicate their high level of Improved in 2016 and is expected to decrease further as firm aims
confidence in the business to pay off a significant portion of its debt by selling fresh shares[1]
REFERENCES

1. https://www.bloombergquint.com/business/this-is-how-sunil-mittal-
can-reduce-bharti-airtels-huge-debt-pile
 CORPORATE
COMPANY SNAPSHOT BUSINESS DESCRIPTION
GOVERNANCE

AGENDA
INDUSTRY OVERVIEW &
FINANCIAL ANALYSIS CAPITAL STRUCTURE
COMPETITIVE ANALYSIS

INVESTMENT
LIQUIDITY ANALYSIS INVESTMENT SUMMARY
RECOMMENDATION
 Business Description

Bharti Tele-Ventures was incorporated on July 7, 1995

Bharti Airtel Limited is a leading global
telecommunications company with operations in 16
countries across Asia and Africa. Headquartered in New
Delhi, India, the company ranks amongst the top 3
Highlights:
mobile service providers globally in terms of subscribers. During the year 2001-02 they launched IndiaOne India's first
In India, the company's product offerings include 2G, private sector national and international long distance
3G and 4G wireless services, mobile commerce, fixed service.
line services, high speed home broadband, DTH,
enterprise services including national & international
long distance services to carriers. In the rest of the African operations into four business units — French
geographies, it offers 2G, 3G, 4G wireless services and speaking African countries, English speaking countries,
mobile commerce. Bharti Airtel had over 445 million Nigeria and Democratic Republic of Congo.
customers across its operations at the end of Sep 2018.

 Mobile – India,Sri Lanka,Bangladesh
 Telemedia(IPTV&Telephone services)-95cities
 Enterprise- end to end telecom solutions national n
International
 Digital TV- India
 Bharati Infratel – a subsiadiary, manages infrastructure
pertaining to telecom operations
 Bharti Infratel Ltd (42%) and Indus Towers Ltd are the
largest passive infrastructure service providers for
telecom services in India.
The Company’s business in India is structured
into six business units (BUs) i.e. Mobile
Services, Homes, Airtel Business, Global
Voice & Data Business, Wynk and Emerging
Businesses and Digital TV Services.
Airtel Payments Bank is an unlisted subsidiary in which the
Company owns 80.10%, the remaining 19.90% is held by
Kotak Mahindra Bank. The Payments Bank’s operations are
managed by its MD & CEO, under the supervision of an
independent Board
 The company operates in four  3997.4 Mn shares as at September
strategic business units namely 30, 2018
Mobile Telemedia Enterprise and
Digital TV
 India:
Rs. 63,433 million -2018
329,678,000 GSM mobile; Proportionate EBITDA
Rs. 80,037 million -2017
2,213,000 –Homes customers;
14,779,000- Digital TV Services Rs. 204,225 million-2018
Proportionate revenue
Africa: Rs. 217,769 million-2017
94,096,000 GSM mobile customers,
SA: 2,428,000 mobile customers
CORPORATE GOVERNANCE

 Independence of Directors in reviewing and approving corporate

strategy, major business plans and activities.
 Complete and timely disclosure of relevant financial and operational
information to enable the Board to play an effective role in guiding
strategies.
 Bharti Airtel’s recent global recognition, among others by Transparency
International, FTI Consulting, Asian Centre for Corporate Governance &
Sustainability, The Institute of Directors (Golden Peacock Award for
Excellence in Corporate Governance) and The Institute of Company
Secretaries of India is a grand acknowledgement of the defined and
structured frameworkofCorporate Governance embedded in Bharti
Airtel’s culture.
 CRISIL has assigned to Bharti Airtel its Governance and Value Creation
(GVC) rating, viz. CRISIL GVC Level 1 for Corporate Governance
practices.
CORPORATE GOVERNANCE

 The Board is chaired by the Chairman, who is responsible for the overall
strategy development, alliances, leadership development, international
opportunities, strengthening governance practices and enhancing brand
value and Airtel’s global image and reputation.
 At one level below the Board, strategic co-ordination and direction is
provided by the Airtel Corporate Council (ACC). The ACC is headed by
the Chairman and comprises the Managing Directors & CEOs
 The (Airtel Management Board ) AMB in India and South Asia, and Exco in
Africa provide support relating to the Company’s business strategy and
also derive operational synergies across business units.
 Airtel’s governance structure thus helps in clearly determining the
responsibilities and entrusted powers of each of the business entities,
enabling them to fulfill those responsibilities in the most effective manner.
It also allows the Company to retain the organisational DNA, while
enabling effective delegation of authority and empowerment at all levels