MIRA INFORM REPORT
|
Report Date : |
3RD May 2006 |
IDENTIFICATION DETAILS
|
Name: |
BHARTI
CELLULAR DIVISION OF BHARTI AIRTEL LIMITED |
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|
Formerly Known as : |
BHARTI
TELE-VENTURES LIMITED |
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Registered Office : |
Qutab
Ambience, H-5/12, Mehrauli Road, New Delhi – 110 030, India |
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Country : |
India |
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Financials (as on) : |
31.03.2005 |
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Date of Incorporation : |
7th
July 1995 |
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Com. Reg. No.: |
55-70609 |
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CIN No.: |
L74899DL1995PLC070609 |
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TAN No.: (Tax Deduction &
Collection Account No.) |
DELB04730F |
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Legal Form : |
A Public Limited Liability
Company. The company’s shares are
listed on the Stock Exchanges. |
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Line of Business : |
Company
is in engaged in Telecommunications services, Provides telephone services and
Internet access over DSL in 15 circles. The company complements its mobile,
broadband & telephone services with national and international long
distance services. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
RATING
|
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is
considered normal. Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 180000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a
well-established and reputed company. Available information indicates high financial
responsibility of the company. Directors are reported as experienced and
respectable industrialists. Financial position of the company is good.
Payments are usually correct and as per commitments. The company can be
considered for normal business dealings at usual trade terms and conditions. |
LOCATIONS
|
Registered Office : |
Qutab Ambience, H-5/12,
Mehrauli Road, New Delhi – 110 030, India |
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Tel. No.: |
91-11-51666000-007 |
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Fax No.: |
91-11-51666011/12 |
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E-Mail : |
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|
Website : |
DIRECTORS
|
Name : |
Mr. Sunil Bharti Mittal |
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Designation : |
Chairman & Managing
Director |
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|
|
|
Name : |
Mr. Rakesh Bharti Mittal |
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Designation : |
Director |
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Name : |
Mr. Rajan Bharti Mittal |
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Designation : |
Joint Managing Director |
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Name : |
Mr. Akhil Gupta |
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Designation : |
Joint Managing Director |
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|
Name : |
Mr. Sin Hang Boon |
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Designation : |
Director nominated by
SingTel |
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|
Name : |
Mr. Lim Toon |
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Designation : |
Director nominated by
SingTel |
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Name : |
Mr. Lung Chien Ping |
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Designation : |
Director |
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|
Name : |
Mr. Bashir Abdulla
Currimjee |
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Designation : |
Director |
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Name : |
Mr. Pulak Chandan Prasad |
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Designation : |
Director |
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Name : |
Mr. Paul O’Sullivan |
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Designation : |
Director |
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Name : |
Ms. Chua Sock Koong |
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Designation : |
Director nominated by
SingTel |
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Name : |
Mr. Dalip Pathak |
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Designation : |
Director |
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Name : |
Mr. Donald Cameron |
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Designation : |
Director |
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Name : |
Mr. Wong Hung Khim |
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Designation : |
Director |
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Name : |
Mr. N kumar |
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Designation : |
Director |
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Name : |
Mr. P M Sinha |
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Designation : |
Director |
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OTHER PERSONNEL |
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Name : |
Mr. Narendra Gupta |
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Designation : |
Company Secretary |
KEY EXECUTIVES
|
Name: |
Mr.
Sunil Bharti Mittal |
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Designation: |
Chairman
and Managing Director |
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Age: |
44
Years |
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Qualification: |
Graduate |
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Experience: |
25
Years |
|
Date of Joining: |
01st
October, 2001 |
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Previous Employment: |
Bharti
Telecom Limited, Chairman |
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|
|
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Name: |
Mr.
Rajan Bharti Mittal |
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Designation: |
Joint
Managing Director |
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Age: |
44
Years |
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Qualification: |
B.A. |
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Experience: |
20
Years |
|
Date of Joining: |
01st
October, 2001 |
|
Previous Employment: |
Bharti
Healthcare Limited |
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|
|
|
Name: |
Mr.
Akhil Gupta |
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Designation: |
Joint
Managing Director |
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Age: |
46
Years |
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Qualification: |
FCA |
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Experience: |
20
Years |
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Date of Joining: |
01st
October, 2001 |
|
Previous Employment: |
Consultancy |
MAJOR SHAREHOLDERS
|
Category |
No of
Shares |
% of
Shareholding |
|
Promoters
Holding |
|
|
|
Indian Promoters |
859,986,028 |
46.40% |
|
Person Acting in Concert |
2,750,000 |
0.15% |
|
Non Promoters Holding |
|
|
|
Mutual Funds and UTI |
41,837,723 |
2.26% |
|
Bank Financial Institutions
and Insurance |
9,204,200 |
0.50% |
|
FII’s |
99,526,851 |
5.36% |
|
Other
Investors |
|
|
|
Private Corporate Bodies |
21,069,224 |
1.14% |
|
Indian Public |
25,553,492 |
1.38% |
|
NRIs/OCBs/Foreign Others |
31,561,292a |
1.70% |
|
Foreign Companies |
745,096,539 |
40.20% |
|
Others |
16,781,418 |
0.91% |
|
Grand Total |
1,853,366,767 |
100.00% |
Details
on the latest shareholding structure and major shareholders, as on March
31, 2006
|
Category |
No of Shares
Held |
% of
Shareholding |
|||
|
Indian Holding |
|
|
|||
|
Promoters* |
861,286,728 |
45.48% |
|||
|
Banks/Mutual
Funds/Indian Financial Institutions/Insurance Companies |
|
|
|||
|
Indian
Residents/Bodies Corporates/Others |
|
2.62% |
|||
|
Total - Indian |
|
51.95% |
|||
|
|
|
|
|||
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Foreign Holding |
|
|
|||
|
Foreign
companies |
|
21.61% |
|||
|
|
25.62% |
|||
|
|
0.82% |
|||
|
Total - Foreign |
|
48.05% |
|||
|
|
|
|
|||
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Total |
|
100.00% |
|||
|
|
|||||
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Major
Shareholders |
|||||
Details
of Shareholders holding more than 1% of the paid up share capital as on
December 31, 2005
Name
and number of shares held and percentage of shareholding of entities/ persons
holding more than 1% of the Company under each head is as below:
|
Category |
|
Name of Shareholders |
|
No. of
shares |
|
% of
Shareholding |
|
|
Promoter |
Bharti
Telecom Limited |
859,986,028 |
45.41% |
||||
|
Foreign
Cos. |
Pastel
Limited |
295,659,650 |
15.61% |
||||
|
Foreign
Cos. |
Vodafone
International Holdings BV |
106,470,268 |
5.62% |
||||
|
FII |
CITI
GROUP GLOBAL MARKETS MAURITIUS PVT LTD |
53,056,291 |
2.80% |
||||
|
FII |
Morgan
Stanley and Co International Ltd |
26,372,359 |
1.39% |
||||
|
IFI |
|
LIFE
INSURANCE CORPORATION OF INDIA |
27,764,509 |
1.47% |
|||
|
FII |
CLSA
MERCHANT BANKERS LIMITED A/C CLSA |
22,739,969 |
1.20% |
||||
|
FII |
The
Growth Fund of America Inc |
21,000,000 |
1.11% |
||||
|
|
|
|
|
||||
|
TOTAL |
|
|
74.61% |
||||
BUSINESS DETAILS
|
Line of Business : |
Company
is in engaged in Telecommunications services, Provides telephone services and
Internet access over DSL in 15 circles. The company complements its mobile, broadband
& telephone services with national and international long distance
services. |
GENERAL INFORMATION
|
No. of Employees : |
300 |
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Bankers : |
ICICI
Bank Limited |
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Facilities : |
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Banking Relations : |
Good |
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Auditors : |
Ř
Price Waterhouse Chartered
Accountants |
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Associates: |
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Subsidiaries : |
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CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2,500,000,000 |
Equity Shares |
Rs.10/- each |
Rs. 25,000.000 millions |
Issued, Subscribed
& Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1856090000 |
Equity Shares |
Rs.10/- each |
Rs. 18560.900 millions |
FINANCIAL
DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES
OF FUNDS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
|
SHAREHOLDERS
FUNDS |
|
|
|
|
1]
Share Capital |
18560.900 |
18533.668 |
18533.668 |
|
2]
Reserves & Surplus |
26775.100 |
29714.890 |
29711.227 |
|
NETWORTH |
45336.000 |
48248.558 |
48244.895 |
|
|
|
|
|
|
LOAN
FUNDS |
|
|
|
|
1]
Secured Loans |
39598.800 |
13.597 |
11.885 |
|
2]
Unsecured Loans |
10344.100 |
6250.000 |
0.000 |
TOTAL
BORROWING
|
49942.900 |
6263.597 |
11.885 |
TOTAL
|
95278.900 |
54512.155 |
48256.780 |
|
|
|
|
|
|
APPLICATION
OF FUNDS |
|
|
|
|
|
|
|
|
|
FIXED
ASSETS [Net Block] |
97649.900 |
145.571 |
168.302 |
|
Capital
work-in-progress |
9944.600 |
0.994 |
-- |
|
|
|
|
|
|
INVESTMENTS |
9319.000 |
17626.656 |
14677.944 |
|
|
|
|
|
|
CURRENT
ASSETS, LOANS & ADVANCES |
|
|
|
|
Inventories |
315.800 |
0.000 |
0.000 |
|
Sundry
Debtors |
7157.400 |
0.000 |
0.000 |
|
Cash
& Bank Balances |
3841.400 |
1.333 |
3.355 |
|
Other
Current Assets |
0.000 |
0.000 |
0.000 |
|
Loans
& Advances |
12056.400 |
36882.246 |
33409.763 |
|
Total
Current Assets |
23371.000 |
36883.579 |
33413.118 |
|
Less : |
|
|
|
|
Current Liabilities & Provisions |
43088.900 |
135.527 |
34.181 |
Provisions
|
2500.100 |
22.153 |
15.833 |
Total Current Liabilities
|
45589.000 |
157.680 |
50.014 |
|
Net Current Assets |
(22218.000) |
36725.899 |
33363.104 |
|
|
|
|
|
|
MISCELLANEOUS
EXPENSES |
583.400 |
13.035 |
47.430 |
|
|
|
|
|
TOTAL
|
95278.900 |
54512.155 |
48256.780 |
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
Sales Turnover [including other income]
|
80268.500 |
631.540 |
729.107 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
15642.800 |
(2.466) |
2.742 |
Provision for Taxation
|
3536.100 |
(1.197) |
0.525 |
Profit/(Loss) After Tax
|
12106.700 |
(3.663) |
2.217 |
|
|
|
|
|
Total Expenditure
|
70299.300 |
629.074 |
726.365 |
QUARTERLY
RESULTS
|
Particulars |
30.06.2005
[1st Quarter] |
30.09.2005 [2nd
Quarter] |
31.12.2005
[3rd Quarter] |
31.03.2006
[4th Quarter] |
|
Sales
Turnover |
24133.100 |
26259.400 |
29190.800 |
32703.600 |
|
Other
Income |
108.000 |
141.000 |
169.500 |
200.500 |
|
Total
Income |
24241.100 |
26400.400 |
29360.300 |
32904.100 |
|
Total
Expenditure |
15337.400 |
16762.900 |
18750.200 |
22618.000 |
|
Operating
Profit |
8903.700 |
9637.500 |
10610.100 |
10286.100 |
|
Interest |
562.100 |
570.700 |
737.600 |
385.500 |
|
Gross
Profit |
8341.600 |
9066.800 |
9872.500 |
9900.600 |
|
Depreciation |
3055.300 |
3382.800 |
3656.400 |
4229.000 |
|
Tax |
669.100 |
385.500 |
510.800 |
470.500 |
|
Reported
PAT |
4617.200 |
5004.300 |
5386.800 |
5112.400 |
200506 Quarter 1 - Expenditure Includes Staff Cost Rs 1649.20
million Other Expenditure Rs 13688.20 million Items Exceeding 10% of total
Expenditure Legal & Professional Charges Rs 130.00 million Travelling &
Conveyance Rs 153.70 million Access & Interconnection Charges Rs 4788.10
million Network Operating Expenses Rs 2345.80 million Sales & Marketing Rs
1835.50 million Licence fee & Spectrum Charges (revenue share) Rs 2369.20
million EPS is Basic Status of Investor Complaints for the quarter ended June
30, 2005 Complaints Pending at the beginning of the quarter Nil Complaints
Received during the quarter 07 Complaints disposed off during the quarter 07 Complaints
unresolved at the end of the quarter Nil 1. Financials for the year ending
March 31, 2005 are post merger audited figures. 2. Financials for the quarter
ending June 30, 2004 are pre merger published figures. 3. The above financial
results for the first quarter (Q1 05-06) ended June 30, 2005 have been reviewed
by the Audit Committee and approved by the Board of Directors in its meeting
held on July 26, 2005. 4. During the quarter Bharti Cellular Ltd (BCL) and
Bharti Infotel Ltd (BIL), subsidiaries of BTVL merged with BTVL w.e.f. April
01, 2004 by an order of the Hon'ble High Court of Delhi dated May 21, 2005.
Consequently, BTVL has become the first private integrated player to have
presence in all the 23 telecom circles in India. 5. During the quarter, the
Company allotted 2,00,88,445 equity shares to M/s Shyam Cellular Infrastructure
Projects Ltd (SCIPL) upon conversion of Optionally Convertible Redeemable
Debentures (OCRDs) of Rs 3750 million issued last year for acquiring 67.5%
stake in M/s Bharti Hexacom Ltd (formerly Hexacom India Ltd). 6. During the
quarter, BTVL acquired 100% equity stake in Bharti Broadband Ltd, (BBL)
(formerly Comsat Max Ltd) by acquiring its holding Company Satcom Broadband
Equipment Ltd (SBEL) (formerly CMax Infocom Ltd). BBL has a licence for
providing VSAT Bandwidth while SBEL is engaged in sale of VSAT equipments. 7.
Segment wise revenue, results and capital employed have been provided
separately under Segment Reporting. The consolidated financial statement has
been furnished to provide information about overall business of the Company and
its subsidiaries. 8. Previous year's figures have been regrouped / rearranged
to conform to current period's classification.
200509 Quarter 2 - Items Exceeding 10% of
total Expenditure Licence fee & Spectrum Charges (revenue share) Rs 2638.60
million Access & Interconnection Charges Rs 4870.20 million Network
Operating Expenses Rs 2692.00 million Sales & Marketing Rs 1905.00 million
EPS is Basic Status of Investor Complaints for the quarter ended September 30,
2005 Complaints Pending at the beginning of the quarter Nil Complaints Received
during the quarter 12 Complaints disposed off during the quarter 12 Complaints
unresolved at the end of the quarter Nil 1. Financials for the year ended March
31, 2005 are post merger audited figures. 2. Financials for the quarter and
half year ended September 30, 2004 are pre merger published figures. 3. The
above financial results for the second quarter (Q2 05-06) ended September 30,
2005 have been reviewed by the Audit Committee and approved by the Board of
Directors in its meeting held on October 27, 2005. 4. As a part of
consolidation exercise and to attain business synergies, the Board of Directors
in its meeting held on July 26 & 27, 2005 approved merger of Satcom
Broadband Equipment Ltd (SBEL) (formerly CMax Infocom Ltd), a wholly owned
subsidiary of the Company and Bharti Broadband Ltd (BBL) (formerly Comsat Max
Ltd), wholly owned subsidiary of SBEL with the Company. The Board, in the same
meeting, also approved the merger with the Company of the undertaking/ business
unit of Bharti Hexacom Ltd, a subsidiary of the Company, providing cellular
services in the North-East telecom circle. 5. During the quarter, the Company
allotted 27,22,125 Equity shares to shareholder(s) of erstwhile subsidiary
Bharti Cellular Ltd (BCL) since merged with the Company w. e. f. June 09, 2005.
6. During the quarter, the Company also allotted 78,80,287 Equity Shares upon
conversion of USD 42.182 Million Zero Coupon Convertible Bonds due 2009 (FCCBs)
issued by the Company vide its Offering Circular dated May 12, 2004.
Subsequently the Company has allotted 34,62,828 Equity shares upon conversion
USD 18.536 Million FCCBs on October 19, 2005. Outstanding FCCBs as on date are
USD 54.282 Million. 7. During the quarter, the Company invested Rs 99,50,000/-
in equity shares of Forum India Aviation Ltd, an aircraft chartering Company
floated by the Company under a joint venture agreement with five other parties.
8. Segment wise revenue, results and capital employed have been provided
separately under Segment Reporting. The consolidated financial statement has
been furnished to provide information about overall business of the Company and
its subsidiaries. 9. Previous years figures have been regrouped/rearranged to
conform to current periods classification.
200512 Quarter 3 - Expenditure Includes
Staff Cost Rs 1925.20 million Other Expenditure Rs 16825.00 million Tax
includes provision for Current Tax Rs 462.90 million Fringe Benefit Tax Rs
47.90 million Deferred Tax Rs 318.50 million Items Exceeding 10% of total
Expenditure Licence fee & Spectrum Charges (Revenue Share) Rs 2927.90
million Access & Interconnection Charges Rs 5510.80 million Network
Operating Expenses Rs 2938.10 million Sales & Marketing Rs 1971.40 million
EPS is Basic Status of Investor Complaints for the quarter ended December 31,
2005 Complaints Pending at the beginning of the quarter Nil Complaints Received
during the quarter 01 Complaints disposed off during the quarter 01 Complaints
unresolved at the end of the quarter Nil 1. Financials for the year ended March
31, 2005 are post merger audited figures. 2. Financials for the quarter and
nine months ended December 31, 2004 are pre merger published figures. 3. The
above financial results for the third quarter (Q3 05-06) ended December 31,
2005 have been reviewed by the Audit Committee and approved by the Board of
Directors in its meeting held on January 24, 2006. 4. 'Reserves & Surplus'
as at December 31, 2005, includes Rs 357.10 million towards employee stock
option outstanding account. 5. During the quarter, Vodafone Group through
Vodafone Mauritius Ltd acquired shares in Bharti Enterprises Ltd (an unlisted
group Company), which gives them a beneficial stake of 4.4% in the Company.
Vodafone also acquired 5.6% stake in the Company from Warburg Pincus, thereby
taking its beneficial interest in the Company to 10.00%. 6. During the quarter,
the Company allotted 60,03,530 Equity Shares upon conversion of USD 32.136
Million Zero Coupon Convertible Bonds due 2009 (FCCBs) issued by the Company
vide its Offering Circular dated May 12, 2004. Subsequently, the Company has
allotted 28,60,159 Equity shares upon conversion USD 15.310 Million FCCBs on
January 12, 2006. Outstanding FCCBs as on date are USD 25.372 Million. 7.
Segment wise revenue, results and capital employed have been provided
separately under Segment Reporting. The consolidated financial statement has
been furnished to provide information about overall business of the Company and
its subsidiaries. 8. Previous year's figures have been regrouped/rearranged to
conform to current period's classification.
200603 Quarter 4 – EPS is Basic & Diluted 1. Figures for the year ended March
31, 2005 are post merger audited numbers. 2. The financials for the quarter
ended March 31, 2005 have been derived using based on full year ended March 31,
2005 post merger numbers less nine months ended December 31, 2004 pre merger
numbers. 3.Reserves and surplus as at March 31 2006 includes Rs 12.60 Crore
towards employee stock option outstanding (net of the related deferred cost)
account. 4. The company's claim for refund of amounts paid to Do T for
restoration of P believes it has a sound and arguable case on merits, still as
a matter of prudent & conservative accounting it has now provided for the
amount of Rs. 186.50 crore hitherto kept as recoverable. Profits for the
quarter and the year are thus lower by this amount. 5. The above financial
results for the Fourth Quarter (Q4 05-06) and the Financial Year (FY 05-06)
ended March 31, 2006 have been reviewed by the Audit Committee and approved by
the Board of Directors in its meeting held on April 27-28 2006 at New Delhi. 6.
The Company has changed its name from Bharti Tele- Ventures Limited to Bharti Airtel
Limited. 7. During the quarter, the Company allotted 38,18,150 Equity Shares
upon conversion of USD 20.438 Million Zero Coupon Convertible Bonds due 2009
(FCCBs) issued by the Company vide its Offering Circular dated May 12, 2004.
Subsequently the Company has allotted 540,270 Equity shares upon conversion USD
2.892 Million FCCBs on 07.04.2006. Outstanding FCCBs as on date are USD 17.352
Million. 8. During the quarter, CRISIL, the leading rating agency in India,
reaffirmed its GVC Level 1 ratingof the company. This is the highest rating
assigned by CRISIL for value creation by a company for all its stakeholders
while adopting sound corporate governance practices. 9. Segment wise revenue,
results and capital employed have been provided separately under Segment
Reporting. The consolidated financial statement has been furnished to provide
information about overall business of the company and its subsidiaries. 10.
Previous year's figures have been regrouped/rearranged to conform to current
period's classification. 11. There were no pending complaints at the beginning
of the quarter. During the quarter the Company received 2 complaints, which
were resolved successfully.
KEY RATIOS
|
PARTICULARS |
|
31.03.2005 |
31.03.2004 |
31.03.2003 |
PAT / Total Income
|
(%)
|
15.08
|
(0.58) |
0.30 |
|
|
|
|
|
|
Net Profit Margin
(PBT/Sales) |
(%) |
19.48
|
(0.39) |
0.37 |
|
|
|
|
|
|
Return on Total Assets
(PBT/Total Assets} |
(%) |
0.12
|
(0.01) |
0.01 |
|
|
|
|
|
|
Return on Investment (ROI)
(PBT/Networth) |
|
0.34
|
(--) |
-- |
|
|
|
|
|
|
Debt Equity Ratio
(Total Liability/Networth) |
|
2.10
|
0.13 |
-- |
|
|
|
|
|
|
Current Ratio
(Current Asset/Current
Liability) |
|
0.51
|
233.91 |
668.07 |
STOCK PRICES
|
Face
Value |
Rs.10/- |
|
High |
Rs.402.30/- |
|
Low |
Rs.391.00/- |
LOCAL AGENCY FURTHER INFORMATION
History:
Bharti Tele-Ventures(BTVL) was incorporated on 7th July,
1995, for promoting investments in diversified telecom service projects. The
company was formed as a 80:20 joint venture between the Bharti Group through
its subsidiary Bharti Telecom and STET International Netherlands NV, a company
promoted by Telecom Italia, Italy.
Bharti is a leading provider of telecom services with more than 12
million customers in India. The company is structured into two main groups,
Mobile Services which offers GSM Mobiles Servies and Infotel Services which
provides broadband & Telephone,long distance and enterprise services. The
company was first GSM Operator to have more than ten million customers and also
the first telecom company to cover all the 23 telecom circles of India, which
this coverage facility the company became the first operator to have an
All-India footprint. All the services of company is been provided under brand
name AIRTEL.
In 2000, BTVL acquired an effective equity interest of 40.5% in Bharti
Mobinet(formerly Skycell Communication), the cellular service provider in
Chennai. It also acquired a 30.20% equity interest of Telecom Italia in Bharti
Telenet and 18.8% from Bharti Telecom thereby making Bharti Telenet a 100%
subsidiary of Bhati Tele-Ventures. BTVL also holds an effective 74% equity in
Bharti Mobile and 100% equity in Bharti Cellular. Bharti Telenet has entered
into license agreements to provide fixed-line services in the Haryana, Delhi,
Tamil Nadu and Karnataka Circles. In 2002-03 the company made a brief corporate
restructuring by merging all the mobile operations into Bharti Cellular Limited
and all Fixed line,long distance and data services into Bharat Infotel Limited.
BTVL's two subsidiaries Bharti Cellular Ltd and Bharti Infotel Ltd have
been merged with the company with effect from 01.04.2004. Subsequently Bharti
Broadband Ltd and Satcom Broadband Equipment Ltd has become the subsidiaries of
the company after the above said merger. During 2005 the company acquired 1%
equity stake of Bharti Hexacom Ltd (formely known as Hexacom India Ltd). With
this acquisition the company stake in Bharti Hexacom Ltd has increased to
68.50%. Bharti Hexacom owns Licenses to operate cellular services in the
Rajasthan and North East Circles.
In 2005 the company was awarded the 'Indian Mobile Operator of the Year
2005' by Asian Mobile News. Also the company became to top-most Telecom Company
and was featured amongst the top three companies across the sectors in the ET
500 published in June 2005. During 2005 the company introduced new products
like BlackBerry wireless solution, Airtel Live and the company was the first
wireless services operator to introduce Ring back tones(Hello Tunes). Also the
company was the first to introduce Stock and Portfolio Tracker on the mobile in
association with the Bombay Stock Exchange.
The company launched its mobile operations in seven new circles of Assam,
Bihar, Jammu & Kashmir, North East, Orissa, Uttar Pradesh (East) and West
Bengal during 2005. Also the company entered into the partnerships with the
leading companies like Nokia, Siemens, Ericsson and IBM for its network
planning, supply & management and for its IT requirements respectively.
Business:
The company is a leading
private telecommunications services provider in India with the largest base of
mobile subscribers in the country. It is currently the only integrated telecom
player with a predominant emphasis on mobile telephony. Company’s consolidated
subscriber base today is nearly 2.1 million of which over 1.8 million are
mobile subscribers.
During 2002-03 it also
arranged an international funding of USD 300 million. Some of the major
developments in 2002-03 include: Launching of eight new mobile services, two
new fixed line services, ILD services and a submarine cable landing station at
Chennai. In 2002-03 the company made a brief corporate restructuring by merging
all the mobile operations into Bharti Cellular Limited and all fixed line, long
distance and data services into Bharat Infotel Limited.
The company presently offers mobile service in fifteen of the 22 circles in
India. The company provides post paid mobile services under the Airtel
brand and the prepaid mobile services under the Airtel-Magic brand.
Financial Review :
The cash profit from operations for the
year ended March 31, 2005 was Rs.28,219 million as compared to Rs.14,353
million for the year ended March 31, 2004. The net finance cost for the year
was Rs.2,439 million as compared to Rs.2,593 million for the corresponding
period last year. The finance cost reduced with the net debt coming down from
Rs.42,292 million to Rs.41,171 million. This has been made possible due to
replacement of certain old borrowings by new borrowings at lower finance cost
and on significant cash flow benefits arising out of capex contracts.
The earnings before tax for the year ended March 31, 2005 was Rs.15,832
million and the net profit was at Rs.12,115 million leading to an earnings per
share of Rs.5.593.
The net debt for the year ended March 31, 2005 was Rs.41,171 million
resulting in the net debt to EBITDA of 1.34 times and interest (net) coverage
ratio of 12.57 times.
Highlights of the Year :
Major Agreements & Alliances:
During the year, the Company entered into a regional mobile services
agreement with six other leading mobile operators (Globe Telecom - Philippines,
Maxis -Malaysia, Optus -Australia, SingTel - Singapore, Taiwan Cellular
Corporations - Taiwan, and Telkomsel -Indonesia) to form a regional alliance.
Bridge Alliance. The alliance will build shared mobile infrastructure, products,
and develop regional mobile services for a potential base of 300 million
customers.
The Company and Videsh SancharNigam Limited (VSNL) entered into an
agreement to share BTVL's national long distance network for a period of 15
years for a consideration of Rs. 5,000 million.
The Company entered into a contract to build and manage AirTel's circles
with major international vendors namely Nokia, Siemens and Ericsson to manage
services and expand AirTel's GSM/GPRS network into rural India. Bharti and
Ericsson also entered into a nationwide Intelligent Network contract.
Mergers & Acquisitions :
Pursuant to the order passed by the Hon'bleHigh Court of Delhi dated May
21, 2005, Bharti Cellular Limited (BCL) and Bharti Infotel Limited (BIL) the
two major operating subsidiary companies have been merged with the Company with
effect from April 1, 2004.
Prior to merger of BCL with the Company, Bharti Mobile Limited operating
in circles of Karnataka, Andhra Pradesh and Punjab was merged with BCL.
The Company acquired an additional stake of 1% from M/s. Fouad M.T. Al Ghanim
Trading & Cont. Co. Kuwait one of the Shareholder of Bharti Hexacom Limited
(formerly known as Hexacom India Limited). With the acquisition of the above 1%
equity stake, Bharti's holding in Bharti Hexacom stands increased to 68.50%.
Bharti Hexacom owns Licenses to operate cellular services in the Rajasthan and
North East Circles.
Bharti (through its erstwhile 100% subsidiary Bharti Infotel Limited,
which has now been merged with the Company) has acquired 100% equity stake in
Bharti Broadband Limited (BBL) (formerly known as Comsat Max Limited) by
acquiring its holding company Satcom Broadband Equipment Limited (SBEL)
(formerly known as CMax Infocom Limited). Bharti Broadband offers
comprehensive, secure and integrated VSAT solutions for enterprises while SBEL
is engaged in the sale of broadband equipments. Brand Unification :
The Company has unified all its telecom offerings under the flagship
brand 'Airtel', after the advent of the unified license regime. Under Brand
Unification, the Company has restructured its businesses under Mobile Services
and Infotel Services. Infotel Services comprises of Broadband & Telephone
Services, Long Distance Services, and Enterprise Services.
Capital Market and Ratings :
During the year, the Company's scrip
was included in the Futures & Options segment on the National Stock
Exchange of India Limited.
The Company was amongst the world's top ten companies on share price gain
given its 276% change in price per share over last year according to the
Business Week (July 26-August 2, 2004).
The Company has always enjoyed best ratings from various rating agencies.
During the year the following ratings were assigned :
Standard and Poor's Rating - 'BB' corporate credit rating (equivalentto
India's Sovereign rating).
Fitch Ratings - 'BB' senior unsecured foreign currency rating.
Information and Credit Rating Agency (ICRA) upgraded the Company's rating
to LAA+, a high quality credit rating and indicative of high safety.
CRISIL - 'AAA/Stable' rating to the Company's Long-Term Debt. This rating
indicates the highest safety with regard to timely payment of interest and
principal.
New Products/Initiatives:
The Company became the first and only telecom operator to provide the
BlackBerry wireless solution to Indian customers.
The Company launched 'Airtel Live' - a multi-access entertainment portal
on the mobile as an initiative to drive convergence in the entertainment and
communication space.
The Company was the first wireless services operator to introduce 'Ring
Back Tones' innovative services (Hello Tunes).
The Company introduced India's first Stock and Portfolio Tracker on the mobile
in association with the Bombay Stock Exchange. Airtel subscribers can use the
Airtel Portfolio Manager to view live stock quotes and analyze status of their
portfolio.
Business Review :
During the financial year 2004-05, the Company crossed key milestones and
maintained its position as a leading telecommunications services provider in
India by continuously improving its strategy and enhancing its
operations.
Some of the key highlights include the following :
The Company became the first mobile services company to have an all India
footprint covering all the 23 circles.
The Company has expanded its coverage of its broadband and telephone
services from 5 circles to 14 circles.
The Company became the first GSM mobile services company in India to cross the
10 million-customer mark.
The Company converted 21 of its 23 cellular services licenses to the Unified
Access Service License (UASL). The Company has applied for the migration of the
Rajasthan cellular license (owned by Bharti Hexacom) to the UAS License and
proposes to convert the North East circle cellular license in the near
future.
As on March 31, 2005, the Company had a combined subscriber base of
11,841,542, which included 10,984,280 mobile subscribers and 857,262 broadband
and telephone subscribers. The Company's total subscriber base grew by 66% in
the financial year, over that of the previous year.
For the financial year, the consolidated revenues and consolidated
operating profits before interest, tax, depreciation and amortization, as per Indian
GAAP, were Rs.81,558 million and Rs.30,658 million respectively.
Mobile Services :
The Company launched mobile operations in seven new circles of Assam,
Bihar, Jammu & Kashmir, North East, Orissa, Uttar Pradesh (East), and West
Bengal. The acquisition of a 68.5% stake in Bharti Hexacom (Rajasthan and North
East circles) and launch of new operations have made the Company the only
mobile services provider with an all India footprint.
The Company added 4.5 million mobile subscribers during the year,
garnering a 26.8% share of the all India GSM mobile market. The Company's
strong performance helped to consolidate its leadership in the market and has
given it the might to take full advantage of the rapidly growing telecom
market.
The revenues from the mobile services for the financial year were
Rs.55,436 million, a growth of 69% over the revenues in the previous financial
year. The mobile services business contributed 68% to the consolidated
revenues. The Company recorded a growth in revenues despite reductions in
tariffs and intense competition. This robust growth came on account of
increases in subscriber base, higher traffic on its networks, and expansion of
non-voice services. With mobile tariffs in India being the lowest in the world,
the Company's prime focus is on ensuring customer satisfaction through network
quality, superior customer service and continuous innovation in value-added
services that would help in expanding its mobile subscriber base and drive up
volumes.
Long Distance Services :
The Company complements its mobile and broadband & telephone services
with national and international long distance services. During the financial
year, the Company saw significant growth in the long distance traffic carried
on its network. Larger numbers of captive customers and substantial increase in
revenues from leased lines helped achieve robust growth in the long distance
services business. The Company also established gateway facilities in various
parts of India and entered into important interconnect agreements with
government-owned telecom companies as well as private sector service
providers.
The Company had approximately 29,000 kilometers of fibre on its national
long distance network as of March 31, 2005.
Risks & Concerns :
Risk is an integral part of any business venture and they are no
exception to it. The risks faced by us are both internal and external in
nature. While the internal risks relate to litigations, disputes, terms of
financing, dependence on suppliers and vendors and certain management related
issues, the external ones include risks in the nature of government policy,
innovations, significant competition and risks associated with large
capital-intensive business. The risks mentioned here are not exhaustive but are
merely indicative.
Outlook :
ECONOMIC OUTLOOK :
The economy is expected to continue to grow between 6-8% over the next
year with a focus on the rural sector. A strong economy will increase the
purchasing power of a large percentage of the population, which will lead to an
increase in adoption of telecom services & products as well as higher
spending on telecom services.
SERVICE DELIVERY WOULD BE KEY :
As the first GSM Company to have all India footprint, they believe that
they are in a strong position to enhance their market leadership. While there
will continue to be stiff competition in the market, they believe that
telecommunications service providers will need to differentiate themselves by
providing unique and superior levels of service experience to the
customers.
They have consistently been the first to market many successful and
innovative products that add to superior customer experience and satisfaction.
Some examples of innovative services that they have introduced in both mobile
and fixed line businesses are Airtel Hello Tunes, Airtel Live, Easy Recharge,
Blackberry, Portfolio manager. They believe that they will continue to provide
unique and innovative services to their customers that will help us further
boost their market leadership.
In F.Y.03-04, they entered into key transformational initiatives with
their IT vendor, IBM and their network vendors Ericsson, Nokia, and Siemens.
These initiatives have resulted in enhanced customer experience through
superior services and network quality. They have also created the Enterprise
Services business that focuses on providing customized end-to-end telecom
solutions to their corporate and high-end customers.
Risks & Concerns :
Risk is an integral part of any business venture and they are no
exception to it. The risks faced by us are both internal and external in
nature. While the internal risks relate to litigations, disputes, terms of
financing, dependence on suppliers and vendors and certain management related
issues, the external ones include risks in the nature of government policy,
innovations, significant competition and risks associated with large
capital-intensive business. The risks mentioned here are not exhaustive but are
merely indicative.
Presented below are certain examples of the risks that they face and the
actions that they have taken to mitigate them.
HUMAN RESOURCES :
With the steady growth of the Indian economy and the services sector,
there is an increased requirement of talented management personnel. Given the
track record and success of their employees, other companies often look at us
as a hunting ground to hire talent.
In order to mitigate this risk of losing talented management personnel,
the company undertakes continuous development of leadership skills through
training and focuses on building employee motivation. In recognition of its
efforts towards its employees, Bharti was awarded the '2nd Best Employer in
India' according to the survey conducted by Hewitt Associates in 2004. As a
retention strategy, the company also plans to issue ESOPs to all its employees
who have shown significant performance as theyll as those employees who have
been with the company for a significant number of years.
Discussion On Financial Performance :
For the year, the Company recorded consolidated gross revenues of
Rs.81,558 million, demonstrating strong growth of 62% year on year. Earnings
before Interest, Tax, Depreciation & Amortization, or EBITDA was Rs.30,658
million, a growth of 80% over last year. Cash Profit from Operations was at
Rs.28,219 million, up by 97% while Profit before Tax was Rs.15,832 million
higher than Rs.5,527 million last year.
Net profit for the year was Rs. 12,116 million, a rise of 108% over last
year.
Material Developments On HR Front :
As of March 31, 2005, they had a total of 7,827 employees as compared to
approximately 5,750 employees on the same date the previous year. There were
4,823, 2,807, and 197 employees in the Mobile Services, Infotel Services and Corporate
Office respectively.
They also had 6,843 employees who were outsourced. Of these 2,958
employees were part of the Mobile Services business while the remaining 3,885
were part of the Infotel Services.
Bharti was ranked the 2nd Best Employer in India amongst the top 25
companies in India, according to the survey conducted by Hewitt in association
with CNBC-TV18. The Top 25 companies were selected out of 272 companies that
participated in the survey this year. The Best Employers Survey is part of
Hewitt Associates' global initiative and its purpose is to depict how companies
align people practices to meet employee needs, identify linkages to business
results and provide insights into the HR practices that differentiate Best
Employers.
Mr. Sunil B. Mittal was awarded the 'Best Peoples CEO' for the year 2004
by Hewitt in association with CNBC-TV18.
Mobile
services
The all India net additions
during the financial year 2003-04 for the mobile services far surpassed the
fixed line net additions. Mobile net additions for the company for the year at 3.4 million subscribers
represent 25.5% share of the all India GSM mobile net additions during the
year. These strong net additions helped the Company in consolidating its market
share leadership along with taking full advantage of the growing market. The
company more than doubled its subscriber base to close at over 6.5 million
mobile subscribers.
The mobile revenues for the year at Rs. 32,871 million were 58% higher
than the last year. This revenue growth has been experienced despite the steep
reduction in tariffs, implementation of incoming free regime and is mainly on
account of increase in subscriber base and as well as traffic on the networks.
With tariffs being one of the lowest in the world, the Company's prime focus is
on network quality, customer service and innovative products & value added
services would help it in expanding its mobile subscriber base and revenues
rapidly in this market scenario.
Long
distance business
The company’s international
long distance services and national long distance services offered under the
brand name “IndiaOne”.
During the year, the company
entered into an agreement with VSNL to share its national long distance
backbone.
Data
business
The company provides
end-to-end data and enterprise services to its corporate customers by
leveraging the bandwidth available in its subsidiaries. These services, which
include VSAT and ISP service, are provisioned through its nationwide fibre
optic backbone and last mile connectivity in fixed line and mobile circles. The
company also provide international bandwidth access through its gateways and
landing station.
RESULTS
OF OPERATIONS
As on March 31, 2004, the Company provided mobile services in fifteen circles,
fixed-line services in five circles, national long distance services,
international long distance services and group data and enterprise solutions.
The Company has recently obtained Unified Access Services Licences (UASL) for
five new circles of UP (East), West Bengal (including Andaman & Nicobar),
Orissa, Bihar (including) Jharkhand) and Jammu & Kashmir. Bharti
Tele-Ventures has also applied for a UAS License for the Assam circle. Further,
the Company converted its fixed line license for the Madhya Pradesh and
Chhattisgarh circles, into a UAS License.
At the close of the financial year 2003-04, the Company had an aggregate of
7,140,939 customers, comprising 6,504,314 mobile customers and 636,625 fixed
line customers. This represents an annual growth of 107%. During the year, the
Company added 3,432,851 mobile customers on its networks.
The company strengthened its leadership in GSM mobile services by improving its
market share from 24.2% at the end of the financial year 2002-03, to 24.9% at
the end of the financial year 2003-04. The market share as a percentage of the
all-India wireless market was approximately 20%.
Mergers
and acquisitions
During the year, the Company had filed a petition before the Hon'ble High Court
of Delhi for merger of Bharti Mobile Limited, which operates cellular services
in Karnataka, Andhra Pradesh & Punjab circles, into Bharti Cellular
Limited. It is likely that this process will be completed in the financial year
2004-05.
I order to further consolidate the group structure, the directors have
decided to merge the two operating companies namely Bharti Cellular Limited and
Bharti Infotel Limited into Bharti Tele-Ventures Limited. This merger would
enable Bharti turning into an operating company. Necessary action to implement
this decision is being taken. .
New Licenses
During the year, the company has
obtained the new licenses for providing the Unified Access Services,
which include telecom circles of West Bengal (including Andaman & Nicobar
and Sikkim), Bihar (including Jharkand), Orissa, Jammu & Kashmir, UP
(East). The subject also applied for
Assam circle and hope to get the same shortly.
The Company has also acquired interest
in the telecom circles of Rajasthan and North Eastern States, through the
acquisition of 67.5% equity stake in Hexacom, which is the cellular mobile
service provider in the Rajasthan Circle and also holds a cellular license for
North Eastern States.
With the above, the Company will
become an all India operator for providing cellular mobile telecom services in
all telecom circles.
Business
Review
As on March 31, 2004, the Company had an aggregate base of 7,140,939 customers comprising
of 6,504,314 mobile and 636,625 fixed-line customers. During the year, the
consolidated revenues and consolidated EBITDA, as per Indian GAAP, were Rs.
50,369 million and Rs. 17,055 million respectively. Revenue from the mobile
services constituted 65% of the consolidated revenues.
Awards
The Company
received various awards and recognitions:
* As per recent survey by `Euromoney' on Best Asian Companies - The
Company ranks as follows
* Best Asian Companies by country: Rank 5 in India.
* Best Asian Companies by sector: Rank 2 in Telecoms - cellular sector in
Asia.
* Best Asian Companies by sector: Rank 2 in Telecoms - basic sector
in
Asia.
* The Company was ranked by `Finance Asia', as follows:
* Best Investor relations - Rank 3
* Best managed company - Rank 5
* Best corporate governance - Rank 5
* Bharti Tele-Ventures was adjudged as the "14th Best Employer"
for the
year 2003 by the BT-Hewitt Associates. The
Best Employers survey is part
of Hewitt Associates global initiative.
Bharti is the only Company whose
HR department has received a Special
Achievers award for "Aligning
people systems to business needs."
This also makes Bharti the only
Telecom Company and the youngest company
to make it to achieve a
ranking in the top 25.
* The "Finance Asia" ranked Mr. Akhil Gupta as one of the
best CFO in
India.
* The "Finance Asia" also ranked Ms. Sonal Kapasi, head of
investor
relations in Bharti as best IR
representative in India.
It’s Fixed assets of
important value include goodwill, leasehold land, freehold hand, leasehold VSAT
assets, plant & machinery, airconditioners, building & leasehold
improvements, office equipment, computer, vehicle, Furniture & fixtures.
Press
clippings
BHARTI
FULFILLS ITS COMMITMENT TO THE PEOPLE OF ANDAMAN AND NICOBAR
Airtel becomes the first
private service provider to commence mobile services in the
islands
· Completes one of the fastest mobile network rollouts –
Keeps its commitment of
launching Airtel by the end of this fiscal to accelerate
the process of building
back the islands
· Commissions a world class GPRS mobile network on a
VSAT
backbone in partnership with Siemens – world leaders in
mobile
technology
· Launch of Airtel heralds the beginning of an era of
choice
· Investments of more than Rs. 20 crore earmarked
· Airtel brings a bouquet of unique, innovative services
like Hello
Tunes, Airtel Live and EasyCharge
Port Blair, March 23,
2005: Bharti Cellular Limited, a
subsidiary of Bharti Tele-Ventures, one of India’s leading telecom
conglomerate, today announced the launch of Airtel mobile services in Andaman
and Nicobar islands. Airtel is the sub-continent’s best* and the largest GSM
mobile service in the country, with more than 10.6 million customers. Airtel is
the first private mobile service in the union territory. The launch underlines
Bharti’s commitment to build a world-class telecom network in the islands
before the end of the current fiscal. A reliable telecom network will further
facilitate the rehabilitation process in a geography, which is one of the worst
affected, in the wake of the Tsunami wave onslaught. Mr. Pradeep Baijal,
Chairman, Telecom Regulatory Authority of India (TRAI), received the first call
from the Airtel network in Andamans.
The launch of Airtel in
Andaman & Nicobar is one of the fastest rollouts of a mobile network and it
has been made possible by deploying a VSAT backbone. The launch heralds the
beginning of an era of ‘choice’ in Andaman & Nicobar. This launch also
takes Bharti much closer to establishing an all India mobile footprint.
*Source: Asia Mobile News
Launching Airtel in Andaman
& Nicobar Islands, Mr. Manoj Kohli, President, Bharti Cellular Limited,
said, “A reliable, world class telecom network is the corner stone of any city,
state or nation. While embarking on this project, they realised the
complexities of laying a network amidst the challenging conditions that
prevailed here. However, they took it as a mission, and today it is my proud
privilege to launch Airtel in this land of history and culture.”
According to Mr. Rajan
Swaroop, Director, Eastern Hub, Bharti Cellular Limited, “This is a historic
moment as the launch of Airtel ushers in an era of ‘choice’ in the region.
Airtel’s world class network, high quality customer service, innovative value
added services and seamless coverage will redefine the mobile telephony
experience of customers in Andamans and provide them the same experience, which
has made Airtel the choice of millions of customers across the country. With
the launch of services in Andamans, they have also become the first private
mobile service provider to complete full rollout under the West Bengal license
area.”
BHARTI
CELEBRATES ITS 23 CIRCLE ALL INDIA FOOTPRINT BY REDUCING ROAMING RATES TO
RS.1.99
Becomes the first to
deliver the Hon’ble Union Communication Minister’s vision of ‘One India’ &
lower roaming tariffs.
· Bharti becomes first to offer benefits of an All India
footprint
· Bharti makes roaming accessible & affordable for
all – delivering
the vision of the Hon’ble Minister.
· All Airtel customers to enjoy the benefits of roaming
– the true
power of GSM.
· Airtel further underlines it’s commitment to create
affordability
for the masses and build a roaming ‘community’.
New Delhi, April 26, 2005:
Airtel, India’s leading mobile service, today gave the benefits of its 23
Circle All-India footprint by announcing a significant reduction in roaming
rates to Rs 1.99. The reduction in roaming tariffs is Bharti’s contribution
towards the vision of ‘One India & lower roaming tariffs, envisaged by Mr.
Dayanidhi Maran, Hon’ble Minster of Communication & IT.
With the reduction in roaming
tariffs, Bharti becomes the first mobile service provider to offer the benefit
of an All-India footprint for its customers. Both pre-paid & post-paid
customers will now be able to access roaming services across the country at
extremely affordable rates. The reduction in roaming tariffs underlines
Airtel’s commitment towards creating affordable mobile services for the masses
and building a roaming community.
The roaming rates have been
reduced to Rs. 1.99 for all Airtel mobile customers, across the country. The
new roaming tariffs come into effect from 1st May. Now all Airtel customers
will be able to enjoy the benefits of roaming – the true power of GSM – at
highly affordable roaming charges.
Announcing the new roaming
tariffs, Mr. Sunil Bharti Mittal, Chairman & Group Managing Director,
Bharti Tele-Ventures Ltd, said, “ As a leading player of the cellular
mobile industry, Airtel has always innovated and made telecom services
available to the masses of India. This reduction in the roaming rate will
expand the roaming community in India and help realise the vision of 200
million mobile subscribers by 2007.”
Bharti, became the first
private service provider in the country to have an All-India footprint when it
launched its services in Assam – the 23rd circle on April 13th
2005, with a call to the Hon’ble Prime Minister of India Dr. Manmohan Singh and
the Hon’ble Minster of Communication & IT, Mr. Dayanidhi Maran. With the
launch of services in Assam, its 23rd circle, Bharti completed its
transformation from a single-circle service provider to India’s first telecom
company to offer an All-India footprint.
About Bharti:
Bharti
Tele-Ventures is one of India’s leading private sector provider of
Tele-communications services with an aggregate of 11.8 million customers as of
end of March ‘05, consisting of approximately 10.98 million mobile customers.
The company today offers mobile services in 23 out of 23 circles in India. The
company also provides fixed - line services and Internet access over DSL in 6
circles. The company complements its mobile and fixed-line services with
national and international long distance services. The company also has a
submarine cable landing station at Chennai, which connects the submarine cable
connecting Chennai and Singapore. The company provides reliable end-to-end data
and enterprise services to the corporate customers by leveraging its nationwide
fiber optic backbone, last mile connectivity in fixed-line and mobile circles,
VSATs, ISP and international bandwidth access through the gateways and landing
station.
Bharti Tele-Ventures
to Observe Silent Period
Category: FY2005-2006, Recent Highlights 2005-2006
31-03-06
New Delhi, March 31, 2006
- Bharti Tele-Ventures, India’s leading private telecom services provider would
be observing a 'Silent Period' from the close of business (6:30 p.m.) today
till the declaration of results for the fourth quarter and full year ended
March 31, 2006, as a commitment towards highest level of corporate governance.
Details about the quarterly results announcement and the
earnings call will be made available on the website shortly.
The practice of silent period does not refrain the company
and its representatives from any press conference & public dissemination of
information. The observation of silent period is only a practice and hence does
not imply any legal obligation for the company under any circumstances.
About Bharti Tele-Ventures
Bharti Airtel is the proposed new name of Bharti Tele-Ventures.
This new name is subject to legal and regulatory approval. Bharti Tele-Ventures
is one of India’s leading private sector providers of telecommunications
services with an aggregate of over 19.74 million customers as of end of
February ‘06, consisting of more than 18.45 million mobile customers. The
company is the only operator to provide mobile services in all the 23 circles
in India. The company also provides telephone services and Internet access over
DSL in 15 circles. The company complements its mobile, broadband &
telephone services with national and international long distance services. The
company also has a submarine cable landing station at Chennai, which connects
the submarine cable connecting Chennai and Singapore. The company is a part of
the consortium, which jointly owns and has developed the next generation
undersea cable system SEA-ME-WE-4. The company provides reliable end-to-end
data and enterprise services to the corporate customers by leveraging its
nationwide fiber optic backbone, last mile connectivity in fixed-line and
mobile circles, VSATs, ISP and international bandwidth access through the
gateways and landing station. For more information, visit www.bhartiteleventures.com
The Hon’ble Prime
Minister inaugurates Bharti School of Telecommunication Technology &
Management at IIT, Delhi
Category:
Recent Highlights 2005-2006
20-03-06
·
The School is an initiative by IIT, Delhi and
Bharti Foundation to develop Young Leaders for the telecommunication
industry
- Backed by state-of-the art
infrastructure and best of faculty
New
Delhi, March 20, 2006: The Hon’ble Prime Minister of India,
Dr. Manmohan Singh, today inaugurated the Bharti School of Telecommunication
Technology & Management at the Indian Institute of Technology (IIT), Delhi.
A joint initiative of Bharti Foundation and IIT, Delhi, the Bharti School has
been established with a Vision ‘To develop telecom leaders through excellence
in education and research’.
Also
present on the occasion were Prof. Surendra Prasad, Director, IIT, Delhi; Mr.
Sunil Bharti Mittal, Chairman & Group Managing Director, Bharti Enterprises
& Co-chairman, Bharti School Advisory Board; and Mr. Rakesh Bharti Mittal,
Vice Chairman, Bharti Enterprises & Member, Bharti School Advisory Board.
Bharti
School will address the need for a centre of Higher Education that would groom
and develop telecommunication engineers and managers able to take on leadership
roles in this dynamic and cutting-edge industry. The school offers
post-graduate programmes, i.e. M.Tech, MBA, MS (Research) and PhD in
telecommunication and has a state-of-the-art Teaching and Research
infrastructure that includes a Telecom Software Lab, a Wireless Communications
Lab and a Telecom Networks Lab. Bharti School attracts the best teaching talent
both from within IIT, Delhi and in the form of Visiting Faculty from other
institutes.
On
the occasion, Prof. Surendra Prasad, Director, IIT Delhi, said, “The IITs have
been created as centres of excellence for higher learning, research and
development in science, engineering and technology in India and they have a
strong emphasis on industry-academia partnership. Bharti School is a shining
example of this partnership for establishing a world-class education and
research centre in the field of telecommunication.”
Mr.
Sunil Bharti Mittal, Chairman & Group Managing Director, Bharti Enterprises
& Co-chairman, Bharti School Advisory Board, said, “Education is the key
for advancing India’s position in the global market as a hub for technology
innovations and for bringing in all-round development of the economy. India is
one of the fastest growing telecom markets in the world and Bharti School is an
initiative devoted to developing “Young Telecom Leaders” that will make India a
telecom super power. This is a momentous occasion and the realisation of a
personal dream for all of us at Bharti.”
According
to Mr. Rakesh Bharti Mittal, Vice Chairman, Bharti Enterprises & Member,
Bharti School Advisory Board, “They are very proud to be associated with IIT,
Delhi in this initiative. The telecom industry today needs professionals with
special skills and knowledge and Bharti School will go a long way in creating a
wealth of talent for the industry.”
Bharti
has given a grant of Rs 20 crores to establish the Bharti School, of which Rs.
10 crores has been spent towards infrastructure support, including construction
of the building, while Rs. 10 crores has been set aside as a corpus to
facilitate smooth functioning of the School.
About
Bharti Foundation
Bharti
Foundation was established in 2000, with a vision “To help underprivileged
children and young people of their country realize their potential.” The
Foundation creates and supports programs that bring about sustainable changes,
predominantly in the field of education. Bharti Foundation has set for itself
the goals of improving the quality of primary education for disadvantaged
children and ensure education and training opportunities for youth to help them
realize their potential.
Bharti
Computer Centres is one of the key programs, which aims at improving learning
levels of underprivileged children, using computer-aided learning. The Centres
also provide computer exposure and training to disadvantaged youth in the
communities, in which they operate. Bharti Library and Activity Centres aim at
improving basic reading ability and learning levels of children. Mid-day-meal
program of Bharti Foundation provides mid-day meals to underprivileged children
in Vrindavan. Bharti School of Telecommunication Technology and Management (at
IIT, Delhi) is being set up with a vision “To develop Telecom Leaders through
excellence in education and research”. Bharti Scholarship Scheme has been
initiated to enable financially weak meritorious students pursue higher
education.
Highlights for Full Year
ended March 31, 2006
• Overall customer base crosses 2 crore mark.
• Highest ever-net addition of 90.84 lakh
customers in a year.
• Total Revenues of Rs. 11,663 crore (up 46%
Y-o-Y).
• EBITDA of Rs. 4,360 crore (up 45% Y-o-Y).
• Cash Profit of Rs. 4,095 crore (up 46%
Y-o-Y).
• Net Profit of Rs. 2,258 crore (up 51%
Y-o-Y).
Highlights
for Fourth Quarter ended March 31, 2006
• Market leader with a market share of all India
wireless subscribers at 21.8%.
• Highest ever-net addition of 33.99 lakh
customers in a single quarter.
• Total Revenues of Rs. 3,411 crore (up 47%
Y-o-Y).
• EBITDA of Rs. 1,278 crore (up 41% Y-o-Y).
• Cash Profit of Rs. 1,205 crore (up 46%
Y-o-Y).
• Net Profit of Rs. 682 crore (up 49% Y-o-Y).
New
Delhi, India, April 28, 2006: Bharti Airtel Limited (“Bharti” or
“the company”) today announced its un-audited results for its fourth quarter
and full year ended March 31, 2006. It has once again maintained its
strong growth momentum as it announced its operational and financial
results. The consolidated total
revenues for the quarter ended March 31, 2006 of Rs. 3,411 crore grew by
47% and EBITDA of Rs. 1,278 crore grew
by 41%. The cash profit from operations of Rs. 1,205 crore grew by 46% over the
corresponding period last year. The net profit during the quarter ended March
31, 2006 was Rs. 682 crore, an increase from Rs. 459
crore
during the corresponding quarter of last year, a growth of 49%. The revenues and net profit for the full
year ended March 31, 2006 was Rs. 11,663 crore and Rs. 2,258 crore, a
growth of 46% & 51% over the corresponding period last year
respectively. Bharti had over
2.09 crore customers, as on March 31, 2006, an increase in the total
customer base of 77%, over the corresponding period last year. Bharti
maintained its leadership position with a market share of all India
wireless subscribers at 21.8% as on March 31, 2006. Commenting on the results and performance, Mr.
Sunil Bharti Mittal, Chairman & Managig Director, Bharti Airtel Limited,
said, “Once again, Bharti has delivered a strong performance, which
reflects the success story of the Indian telecom sector. The company continues
to set new industry benchmarks, be it product and process innovations or
fostering partnerships with world-class companies. The outlook for the industry
remains positive and the year ahead
promises
to be an exciting one for Bharti. With an integrated organisational
structure in place, the company is confident of making rapid strides towards
fulfilling its vision of making Airtel the most admired brand in the
country by 2010.”
BTVL
Consolidated - Summary of Consolidated Financial Statements (Un-audited) - represents Consolidated Statement of Income as per United States
Generally Accepted Accounting Principles [US GAAP]
|
Particulars |
Quarter Ended |
Y-0-Y
Growth |
Full
Year Ended |
|
|
|
March
2006 |
March
2005 |
|
March
2006 |
|
Total
Revenue |
0.003 |
0.002 |
47
% |
0.011 |
|
EBIYDA |
0.001 |
0.001 |
41
% |
0.004 |
|
Cash
profit from operations |
0.001 |
0.001 |
46
% |
0.004 |
|
Earnings/(loss)
before taxation |
0.001 |
0.001 |
45
% |
0.003 |
|
Net
profit / (loss) |
0.006 |
0.000 |
49
% |
0.002 |
|
EBITDA
/ Total Revenues |
37.5
% |
38.9
% |
|
37.4
% |
|
Parameters
|
Unit |
March
31 2006 |
Decd
31 2005 |
O-on-Q
Growth |
|
Customer
on our Mobile services |
000’
s |
19579 |
16327 |
20
% |
|
Broadband
and Telephone services |
000’
s |
1347 |
1200 |
12
% |
|
|
000’
s |
20926 |
17527 |
19
% |
Bout
Bharti Airtel Limited
Bharti Airtel is one of India’s
lead 20.93 million customers as of end of March ‘06, consisting of more than
19.58 million mobile customers. The company is the only operator to provide
mobile services in all the 23 circles in India. The company also
provides telephone
services
and Internet access over DSL in 15 circles. The company complements its mobile,
broadband & telephone services with
national and international long distance services. The company also has a
submarine cable landing station at Chennai, which connects the submarine cable
connecting Chennai and Singapore. The company is a part of
the
consortium, which jointly owns and has developed the next generation undersea
cable system SEA-ME-WE-4. The company provides reliable end-to-end data and
enterprise services to the corporate customers by leveraging its nationwide
fiber optic backbone, last mile connectivity in fixed-line and mobile circles,
VSATs, ISP and international bandwidth
access through the gateways and landing station. For more information, visit www.bhartiairtel.in
[This communication does not constitute an
offer of securities for sale in the United States. Securities may not be sold
in the United gistration or an exemption from registration under the U.S.
Securities Act of 1933, as amended. Any public offering States absent re of
securities to be made in the United States will be made by means of a
prospectus and will contain detailed information about the Company and its
management, as well as financial statements.]
(formerly known as Bharti
Tele-Ventues Limited)
The company is a part of Bharti Enterprises, and is India's
leading provider of telecommunications services. The businesses at
Bharti Airtel have been structured into three individual strategic
business units (SBU’s) - mobile services, broadband & telephone services
(B&T) & enterprise services. The mobile services group provides GSM
mobile services across India in 23 telecom circles, while the B&T business
group provides broadband & telephone services in 90 cities. The
Enterprise services group has two sub-units - carriers (long distance services)
and services to corporates. All these services are provided under the Airtel
brand.
Highlights:
|
Bharti Tele-Ventures is
the “BEST INDIAN CARRIER” at Telecom Asia Awards 2006 |
|
|
Bharti announces
un-audited results for the fourth quarter and full year ended March 31, 2006 |
|
|
Bharti has been adjudged
as India's 'second best employer' by Hewitt Associates. |
|
|
Bharti, India’s leading
telecom conglomerate, declared country’s best-managed company by Asiamoney. |
|
CMT REPORT [Corruption, Money laundering & Terrorism]
The
Public Notice information has been collected from various sources including but
not limited to: The Courts, India Prisons Service, Interpol, etc.
1] INFORMATION
ON DESIGNATED PARTY
No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.
2] Court
Declaration :
No records exist to suggest that subject is or was the
subject of any formal or informal allegations, prosecutions or other official
proceeding for making any prohibited payments or other improper payments to
government officials for engaging in prohibited transactions or with designated
parties.
3] Asset
Declaration :
No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.
4] Record
on Financial Crime :
Charges or conviction registered
against subject: None
5] Records
on Violation of Anti-Corruption Laws :
Charges or investigation registered
against subject: None
6] Records
on Int’l Anti-Money Laundering Laws/Standards :
Charges or investigation registered
against subject: None
7] Criminal
Records
No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.
8] Affiliation
with Government :
No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.
9] Compensation
Package :
Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.
10] Press Report :
No press reports / filings exists on the subject.
CORPORATE
GOVERNANCE
MIRA
INFORM as part of its Due Diligence do provide comments on Corporate Governance
to identify management and governance. These factors often have been predictive
and in some cases have created vulnerabilities to credit deterioration.
Our
Governance Assessment focuses principally on the interactions between a company’s
management, its Board of Directors, Shareholders and other financial
stakeholders.
CONTRAVENTION
Subject
is not known to have contravened any existing local laws, regulations or
policies that prohibit, restrict or otherwise affect the terms and conditions
that could be included in the agreement with the subject.
FOREIGN
EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US
Dollar |
1 |
Rs.44.88 |
|
UK
Pound |
1 |
Rs.83.07 |
|
Euro |
1 |
Rs.56.94 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
This score
serves as a reference to assess SC’s credit risk and to set the amount of
credit to be extended. It is calculated from a composite of weighted scores
obtained from each of the major sections of this report. The assessed factors
and their relative weights (as indicated through %) are as follows:
Financial condition (40%) Ownership background (20%) Payment record (10%)
Credit history (10%) Market trend (10%) Operational
size (10%)
RATING
|
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely
sound financial base with the strongest capability for timely payment of
interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate
working capital. No caution needed for credit transaction. It has above
average (strong) capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial &
operational base are regarded healthy. General unfavourable factors will not
cause fatal effect. Satisfactory capability for payment of interest and
principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is
considered normal. Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable &
favourable factors carry similar weight in credit consideration. Capability
to overcome financial difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are
apparent. Repayment of interest and principal sums in default or expected to
be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk
exists. Caution needed to be exercised |
Credit not recommended |