MIRA
INFORM REPORT
|
Report Date : |
08.08.2011 |
IDENTIFICATION DETAILS
|
Name : |
BHARTI AIRTEL LIMITED [w.e.f.
24.04.2006] |
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|
|
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Formerly Known As : |
BHARTI
TELE-VENTURES LIMITED |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.03.2011 |
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Date of Incorporation : |
07.07.1995 |
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Com. Reg. No.: |
55-70609 |
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|
|
|
Capital Investment / Paid-up Capital : |
Rs.18988.000 Millions |
|
|
|
|
CIN No.: [Company
Identification 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 : |
Providing Tele-Communications
Services |
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|
No. of Employees
: |
24538
(Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (66) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD
1800000000 |
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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 good for normal business dealings at usual trade terms and
conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
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High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
|
Registered Office : |
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|
Tel. No.: |
91-11-46666100 /
42666500 |
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Fax No.: |
91-11-41666137 |
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E-Mail : |
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Website : |
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Corporate Office
: |
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Tel No.: |
91-124-4552222 |
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Fax No.: |
91-124-4552233 |
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Email : |
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Branches : |
Located At:
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Circle Offices : |
·
·
Andhra
Pradesh ·
·
·
·
Haryana ·
·
Himachal
Pradesh ·
·
Karnataka ·
Madhya
Pradesh ·
Chattisgarh ·
·
Rajasthan ·
Tamil
Nadu and Kerala ·
Uttar
Pradesh and Uttaranchal ·
|
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. Sunil Bharti
Mittal |
|
Designation : |
Chairman and
Managing Director |
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|
|
|
Name : |
Mr. Manoj Kohli |
|
Designation : |
CEO
(International) and Joint Managing Director |
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|
Name : |
Mr. Ajay Lal |
|
Designation : |
Non-Executive Director |
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Date of Birth / Age : |
08.08.1961 |
|
Qualification : |
|
|
Experience : |
Management, Private Equity, Project Finance and Corporate Banking |
|
Other Directorship Held : |
|
|
|
|
|
Name : |
Mr. Akhil Gupta |
|
Designation : |
Non-Executive Director |
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Date of Birth / Age : |
22.12.1955 |
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Qualification : |
CA, Advanced
Management Program at |
|
Experience : |
Financial
Management |
|
Other Directorship Held : |
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|
|
|
|
Name : |
Ms. Chua Sock
Koong |
|
Designation : |
Non-Executive Director |
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|
Name : |
Mr. Craig Edward Enrich |
|
Designation : |
Non-Executive Director |
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Date of Birth / Age : |
14.05.1955 |
|
Qualification : |
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|
|
|
|
Name : |
Mr. Lord Evan
Mervyn Davies |
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Designation : |
Non-Executive Director |
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|
Name : |
Mr. Hui Weng
Cheong |
|
Designation : |
Non-Executive Director |
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|
Name : |
Mr. N Kumar |
|
Designation : |
Non-Executive Director |
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|
Name : |
Mr. Nilesh Arora |
|
Designation : |
Non-Executive Director |
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Date of Birth / Age : |
09.02.1968 |
|
Qualification : |
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|
Name : |
Mr. Pulak Prasad |
|
Designation : |
Non-Executive Director |
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|
|
|
Name : |
Mr. Rajan Bharti
Mittal |
|
Designation : |
Non-Executive Director |
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Date Of Birth : |
05.01.1960 |
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Qualification : |
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Date Of Appointment |
07.07.1995 |
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|
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|
Name : |
Mr. Rakesh Bharti
Mittal |
|
Designation : |
Non-Executive Director |
|
Date of Birth : |
18.09.1955 |
|
Qualification : |
Engineering from the YMCA |
|
Date Of Appointment : |
07.07.19555 |
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|
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|
Name : |
H E Dr. Salim
Ahmed Salim |
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Designation : |
Non-Executive Director |
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|
Name : |
Ms. Tan Yong Choo |
|
Designation : |
Non-Executive Director |
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|
Name : |
Mr. Tsun-yan
Hsieh |
|
Designation : |
Non-Executive Director |
KEY EXECUTIVES
|
Name : |
Mr. Sanjay Kapoor |
|
Designation : |
CEO ( |
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|
|
|
Name : |
Ms. Vijaya
Sampath |
|
Designation : |
Group General
Counsel and Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2011
|
Category of Shareholders |
No.
of Shares |
Percentage
of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
1727739056 |
45.50 |
|
|
1727739056 |
45.50 |
|
|
|
|
|
|
857180286 |
22.57 |
|
|
8493000 |
0.22 |
|
|
8493000 |
0.22 |
|
|
865673286 |
22.80 |
|
Total shareholding of Promoter and Promoter Group (A) |
2,593412342 |
68.29 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
140959626 |
3.71 |
|
|
1498216 |
0.04 |
|
|
179434152 |
4.73 |
|
|
667809880 |
17.59 |
|
|
989701874 |
26.06 |
|
|
|
|
|
|
141677595 |
3.73 |
|
|
|
|
|
|
43803135 |
1.15 |
|
|
15737510 |
0.41 |
|
|
13197640 |
0.35 |
|
|
55 |
- |
|
|
5082710 |
0.13 |
|
|
3748689 |
0.10 |
|
|
479378 |
0.01 |
|
|
3886808 |
0.10 |
|
|
214415880 |
5.65 |
|
Total Public shareholding (B) |
1204117754 |
31.71 |
|
Total (A)+(B) |
3797530096 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
3797530096 |
- |
(1) Indian
Bodies Corporate
Any OtherBUSINESS DETAILS
|
Line of Business : |
Providing
Tele-Communications Services |
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|
|
|
Products : |
Basic and
Cellular Telephone Services, Broad-Band and Long Distance Communication
Services. |
GENERAL INFORMATION
|
No. of Employees : |
24538
(Approximately) |
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Bankers : |
ICICI Bank
Limited |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
|
|
Name : |
Statutory Auditors S. R. Batliboi And Associates Chartered
Accountants Internal Auditors ·
Price
Waterhouse Coopers Private Limited ·
ANB
Consulting Private Limited |
|
|
|
|
Associates/Associate of subsidiary : |
·
Alcatel-Lucent Network Management Services India
Limited ·
Bharti Teleports Limited ·
Tanzania Telecommunications Limited (Associate of
Bharti Airtel |
|
|
|
|
Joint Ventures/Joint Venture of Subsidiary : |
·
Forum I Aviation Limited (Joint Venture of Bharti
Airtel Services Limited) ·
Indus Towers Limited (Joint Venture of Bharti
Infratel Limited) ·
Bridge Mobile Pte Limited |
|
|
|
|
Entities where control exist – Subsidiary/Subsidiaries of Subsidiary : |
·
Bharti Hexacom Limited ·
Bharti Airtel Services Limited ·
Bharti Telemedia Limited ·
Bharti Airtel ( ·
Bharti Airtel Lanka (Private) Limited ·
Bharti Airtel ( ·
Bharti Airtel ( ·
Bharti Airtel (Hongkong) Limited ·
Bharti Infratel Limited ·
Network i2i Limited ·
Bharti Airtel Holdings ( ·
Bharti Airtel ( ·
Bharti Infratel Lanka (Private) Limited
(subsidiary of Bharti Airtel Lanka (Private) Limited) ·
Bharti Infratel Ventures Limited (subsidiary of
Bharti Infratel Limited) ·
Airtel M Commerce Services Limited (Incorporated
on April 1, 2010) ·
Bharti Airtel ( ·
Bharti Airtel ( ·
Bharti Airtel International ( ·
Bharti International ( ·
Airtel Bangladesh Limited (formerly Warid Telecom
International Limited) (subsidiary of Bharti Airtel Holdings ( ·
Bharti Airtel International ( ·
Bharti Airtel Africa B.V. (Subsidiary of Bharti
Airtel International ( Other subsidiaries of Bharti Airtel Africa B.V. : ·
Africa Towers N.V. (incorporated on October 5,
2010) ·
Airtel ( ·
Airtel (SL) Limited (formerly Celtel Sierra Leone
Limited) ·
Airtel Burkina Faso S.A. (formerly Celtel Burkina
Faso S.A.) # ·
Airtel ·
Airtel DTH Services (K) Limited (incorporated on
January 18, 2011) ·
Airtel DTH Services ( ·
Airtel DTH Services Burkina Faso S.A.
(incorporated on March 30, 2011) ·
Airtel DTH Services Congo S.A. (incorporated on
November 26, 2010) ·
Airtel DTH Services Ghana Limited (incorporated
on November 2, 2010) ·
Airtel DTH Services Madagascar S.A. (incorporated
on March 15, 2011) ·
Airtel DTH Services Malawi Limited (incorporated
on November 26, 2010) ·
Airtel DTH Services Niger S.A. (incorporated on
November 29, 2010) ·
Airtel DTH Services Nigeria Limited (incorporated
on January 27, 2011) ·
Airtel DTH Services T.Chad S.A. (incorporated on
February 18, 2011) ·
Airtel DTH Services Tanzania Limited
(incorporated on January 27, 2011) ·
Airtel DTH Services Uganda Limited (incorporated
on November 26, 2010) ·
Bharti DTH Services Zambia Limited (incorporated
on Feb 11, 2011) ·
Airtel Madagascar S.A. (formerly Celtel
Madagascar S.A.) ·
Airtel Malawi Limited (formerly Celtel Malawi
Limited) ·
Airtel Networks Kenya Limited (formerly Celtel
Kenya Limited)# ·
Airtel Networks Limited (formerly Celtel Nigeria
Limited) ·
Airtel Tanzania Limited (formerly Celtel Tanzania
Limited)# ·
·
Airtel Towers S.L. Company Limited (incorporated
on February 2, 2011) ·
Airtel Uganda Limited (formerly Celtel Uganda
Limited) ·
Bharti Airtel Acquisition Holdings B.V. ·
Bharti Airtel Burkina Faso Holdings B.V. ·
Bharti Airtel ·
Bharti Airtel ·
Bharti Airtel ·
Bharti Airtel DTH Holdings B.V. (incorporated on
September 28, 2010) ·
Bharti Airtel ·
Bharti Airtel ·
Bharti Airtel IP Netherlands B.V. (dissolved
w.e.f. December 30, 2010) ·
Bharti Airtel ·
Bharti Airtel ·
Bharti Airtel ·
Bharti Airtel ·
Bharti Airtel ·
Bharti Airtel Middle East B.V. (dissolved w.e.f.
December 30, 2010) ·
Bharti Airtel Morocco Holdings B.V. (dissolved
w.e.f. December 30, 2010) ·
Bharti Airtel ·
Bharti Airtel ·
Bharti Airtel ·
Bharti Airtel ·
Bharti Airtel RDC Holdings B.V. ·
Bharti Airtel Services B.V. ·
Bharti Airtel ·
Bharti Airtel ·
Bharti Airtel Tanzania Holdings B.V. (dissolved
w.e.f December 30, 2010) ·
Bharti Airtel ·
Bharti Airtel ·
·
Celtel ( ·
Celtel Cameroon SA ·
Celtel Chad S.A.# ·
Celtel ·
Celtel Gabon S.A. ·
Celtel Niger S.A. ·
Celtel Zambia plc ·
Channel Sea Management Co Mauritius Limited ·
·
Indian Ocean Telecom Limited ·
·
·
Malawi Towers Limited (incorporated on December
15, 2010) ·
Mobile Commerce Congo S.A. ·
Mobile Commerce Gabon S.A (incorporated on
October 26, 2010) ·
·
MSI-Celtel Nigeria Limited ·
·
Partnership Investments Sprl ·
Société Malgache de Telephonie Cellulaire SA ·
·
·
Telecom Seychelles Limited ·
Towers Support Nigeria Limited (incorporated on
March 7, 2011) ·
Uganda Towers Limited (incorporated on December
30, 2010) ·
Zain (IP) Mauritius Limited ·
Zain Developers Form ·
Zain Mobile Commerce Tchad SARL (formerly Zain
Mobile Commerce Tchad) ·
Zain Plc (dissolved w.e.f. January 11, 2011) ·
Zambia Towers Limited (incorporated on February
7, 2011) ·
Zap Holdings B.V. ·
Zap ·
Zap Niger S.A. ( ·
Zap Trust Burkina Faso S.A. (incorporated on
September 27, 2010) ·
Zap Trust Company (SL) Limited ( ·
Zap Trust Company Limited ( ·
Zap Trust Company Limited ( ·
Zap Trust Company Limited ( ·
Zap Trust Company Nigeria Limited ·
Zap Trust Company Tanzania Limited (incorporated
on November 11, 2010) ·
Zap Trust Company Uganda Limited (incorporated on
October 7, 2010) ·
ZMP Limited ( Note # Transactions of similar nature with such subsidiaries have been clubbed
and shown under the head ‘Other African Subsidiaries’ as their contribution
to total transaction value is less than 10%. |
|
|
|
|
Entities where Key Management Personnel and its relatives exercise
significant influence/Group Companies : |
·
Beetel Teletech Limited ·
Bharti Airtel Employees Welfare Trust ·
Bharti Axa General Insurance Company Limited ·
Bharti Axa Investment Managers Private Limited ·
Bharti Axa Life Insurance Company Limited ·
Bharti Enterprises Limited ·
Bharti Foundation ·
Bharti Realty Holdings Limited ·
Bharti Realty Limited ·
Bharti Retail Limited ·
Bharti Wal-Mart Private Limited ·
Centum Learning Limited ·
Comviva Technologies Limited ·
Fieldfresh Foods Private Limited ·
Guernsey Airtel Limited ·
Indian Continent Investment Limited ·
Jersey Airtel Limited ·
Nile Tech Limited |
|
|
|
|
Entities having significant influence over the Company : |
·
Singapore Telecommunications Limited ·
Pastel Limited ·
Bharti Telecom Limited |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5000000000 |
Equity Shares |
Rs.5 /- each |
Rs.25000.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3797530096 |
Equity Shares |
Rs.5 /- each |
Rs.18988.000
Millions |
Note:
·
49,999,000 and 1,516,390,970 equity shares of Rs.10
each issued as fully paid-up bonus shares on February 24, 1997 and September
30, 2001 respectively out of Share Premium account.
·
21,474,527 Equity Shares of Rs.10 each are allotted
as fully paid-up upon the conversion of Foreign Currency Convertible Bonds
(FCCBs).
·
2,722,125 Equity Shares of Rs.10 each are allotted
as fully paid-up under the Scheme of amalgamation without payments being
received in cash.
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
18988.000 |
18987.650 |
18982.398 |
|
|
2] Share Application Money |
0.000 |
0.000 |
2.933 |
|
|
3] Reserves & Surplus |
419342.000 |
346523.215 |
256295.074 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
438330.000 |
365510.865 |
275280.405 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
171.000 |
394.296 |
517.304 |
|
|
2] Unsecured Loans |
118804.000 |
49994.936 |
76619.167 |
|
|
TOTAL BORROWING |
118975.000 |
50389.232 |
77136.471 |
|
|
DEFERRED TAX LIABILITIES |
5276.000 |
32.543 |
0.000 |
|
|
EMPLOYEE STOCK OPTIONS OUTSTANDING |
2786.000 |
1860.902 |
1159.239 |
|
|
|
|
|
|
|
|
TOTAL |
565367.000 |
417793.542 |
353576.115 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
407008.000 |
280249.640 |
250133.585 |
|
|
Capital work-in-progress |
64976.000 |
15947.360 |
25666.693 |
|
|
|
|
|
|
|
|
INVESTMENT |
118130.000 |
157733.191 |
117777.582 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
3271.103 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
344.000
|
272.443
|
621.510 |
|
|
Sundry Debtors |
23758.000
|
21049.770
|
25500.488 |
|
|
Cash & Bank Balances |
1338.000
|
8167.415
|
22516.027 |
|
|
Other Current Assets |
1015.000
|
663.743
|
1197.127 |
|
|
Loans & Advances |
103037.000
|
62097.457
|
44414.947 |
|
Total
Current Assets |
129492.000
|
92250.828
|
94250.099 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
111888.000
|
86471.055
|
91552.896 |
|
|
Other Current Liabilities |
36075.000 |
35328.878 |
39626.920 |
|
|
Provisions |
6276.000 |
6587.544 |
6344.004 |
|
Total
Current Liabilities |
154239.000
|
128387.477
|
137523.820 |
|
|
Net Current Assets |
(24747.000)
|
(36136.649)
|
(43273.721) |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.873 |
|
|
|
|
|
|
|
|
TOTAL |
565367.000 |
417793.542 |
353576.115 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
380158.000 |
356095.407 |
340142.902 |
|
|
|
Other Income |
1129.000 |
897.295 |
1407.368 |
|
|
|
TOTAL (A) |
381287.000 |
356992.702 |
341550.270 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Access Charges
|
49872.000
|
44356.838
|
52034.149
|
|
|
|
Network Operating
|
85712.000
|
74467.226
|
63268.921
|
|
|
|
Cost of Goods Sold
|
161.000
|
203.225
|
124.051
|
|
|
|
Personnel
|
14512.000 |
14371.323
|
14336.407
|
|
|
|
Sales and Marketing
|
31802.000
|
24049.062
|
21763.991
|
|
|
|
Administrative and Other expenditure
|
21353.000
|
22401.476
|
20875.328
|
|
|
|
Licence fee and spectrum charges
(revenue share)
|
42903.000
|
37548.702
|
35821.761
|
|
|
|
Charity and donation paid to
satya electoral trust for political purposes
|
290.000
|
179.626
|
219.463
|
|
|
|
TOTAL (B) |
246605.000 |
217577.478 |
208444.071 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
134682.000 |
139415.224 |
133106.199 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1308.000 |
(8556.474) |
17639.842 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
133374.000 |
147971.698 |
115466.357 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/ AMORTISATION (F) |
46116.000 |
40979.212 |
33850.990 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
87258.000 |
106992.486 |
81615.367 |
|
|
|
|
|
|
|
|
|
Less |
MAT CREDIT |
(12469.000) |
(10385.866) |
(1396.304) |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
22558.000 |
23116.805 |
5573.286 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
77169.000 |
94261.547 |
77438.385 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
Capital Goods |
19105.000 |
15472.000 |
NA |
|
|
|
Total |
19105.000 |
15472.000 |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
- Basic |
20.32 |
24.83 |
20.40 |
|
|
|
- Diluted |
20.32 |
24.82 |
20.39 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
|
Type |
1st
Quarter |
|
Net Sales |
101800.000 |
|
Total Expenditure |
69852.000 |
|
PBIDT (Excl OI) |
31948.000 |
|
Other Income |
190.000 |
|
Operating Profit |
32138.000 |
|
Interest |
2033.000 |
|
Exceptional Items |
0.000 |
|
PBDT |
30105.000 |
|
Depreciation |
11707.000 |
|
Profit Before Tax |
18398.000 |
|
Tax |
4075.000 |
|
Provisions and contingencies |
0.000 |
|
Profit After Tax |
14323.000 |
|
Extraordinary Items |
0.000 |
|
Prior Period Expenses |
0.000 |
|
Other Adjustments |
0.000 |
|
Net Profit |
14323.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
20.24 |
26.40 |
22.67 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
22.95 |
30.05 |
23.99 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
16.26 |
28.72 |
23.70 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.20 |
0.29 |
0.30 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.62 |
0.49 |
0.78 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.84 |
0.72 |
0.69 |
LOCAL AGENCY FURTHER INFORMATION
OVERVIEW
Subject is one of
the world’s providers of telecommunication services with presence in 19 countries
including
to telecom
operations under its subsidiary Bharti Infratel Limited. Bharti Infratel owns
42% of Indus Towers Limited. Bharti Infratel and
MAJOR AGREEMENTS
AND ALLIANCES
During the year, the
Company signed the following major agreements relating to operations, customer
service, innovation and technology:
·
With Ericsson,
Nokia Siemens Networks and Huawei
for the launch of 3G services in
·
With Ericsson
and Huawei to deploy
state-of-the-art network infrastructure in
·
With State
Bank of India (SBI), a Joint Venture (JV) agreement to usher in the new
era of financial inclusion for the unbanked in
·
With Nokia to
launch ‘Ovi Life Tools’ service
targeted at providing Airtel's mobile customers with access to relevant content
on agriculture, education and entertainment.
·
With Radio
Mirchi, to launch ‘Mirchi
Mobile’ on airtel, enabling its customers to choose and follow their
favourite local Mirchi radio station from anywhere in
·
With Encyclopedia
Britannica to offer airtel broadband customers two year free access to ‘Britannica
online’, the world’s most trusted information source.
·
With Novatium
to help expand the broadband market by launching ‘Net PC Plus’ on airtel broadband for
customers in Chennai.
·
With Savvis
to offer managed IT and cloud services in the high growth Indian IT
market. The collaboration aims to launch innovative managed services to
enterprises operating in or expanding into
·
With China
Telecom to launch direct underground terrestrial link between
·
With VMware,
to launch virtualisation services based on VMware vSphere platform, extending
the Managed Service portfolio.
·
With Servion
and Cisco for launch of
·
With consortium of telecom operators for launch of IMEWE submarine cable system stretching
from India to Western Europe via Middle East; EASSy Cable system, the largest submarine cable system serving the
African continent and EIG offering
connectivity to the Middle East, Africa and Europe with enhanced capacity,
redundancy and network resilience.
·
With IBM for
transformation and management of the comprehensive IT infrastructure and
applications in all the 16
·
countries of operations in
·
With Ericsson,
NSN Siemens and Huawei for network management of 2G and 3G network in all the 16 countries of
operations in
·
With IBM, Tech
Mahindra and Spanco for world-class customer service across all 16
countries in
NEW PRODUCTS/
INITIATIVES
During the year,
the Company launched various new and innovative products and services, directly
and through its subsidiaries, which enabled it to strengthen its leadership in
an intensely competitive market. Some of the key launches of the year included:
3G Services in
9 of 13 circles with 3G spectrum, empowering all 3G customers to manage their
data usage and avoid ‘bill shock’ with proactive, personalised and timely data
usage alerts coupled with introduction of easy-to-understand intuitive tariffs
with personalised data usage limits.
airtel money -
airtel call
manager, a service that enables a customer to keep his/her callers informed
(when he is in a meeting or driving and is not able to take calls) by choosing
the meeting or the driving profiles.
airtel voice blog, world’s first
voice blogging service, enabling customers to share recorded voice updates with
their followers – fans, friends or family.
airtel world SIM for
international travellers enabling outbound travellers to retain their local
number while roaming
internationally at
a fraction of the cost, allowing customers to save upto 85 percent on international
calls.
Live Aarti on
mobile, India’s first service on mobile offering daily live Pujas and Aartis
directly from the shrines including Tirupati Balaji, Siddhivinayak, Shri Sai
Baba from Shirdi and Bangla Sahib.
LearnNext an e-Learning
website for the Company’s broadband users. It is a complete computer based
interactive CBSE study module, for students studying in Class VI to X.
IPTV services in
airtel broadband
TV, allows the broadband customers to watch
live TV on their computers or laptops without having to buy an extra TV set or
cable connection/set top box or an air antenna by simply subscribing to airtel
broadband TV.
Unified Service
Management Centre (uSMC), to enhance the quality of customer experience and provide best
in class services to the customers.
Global Data
Services in
airtel digital TV
recorder, an enhanced Set
Top Box (STB) with capability to record live television, anytime, anywhere
using mobile phone. After pioneering the initiative of recording television
programmes through mobile, the recording
facility was extended through internet for airtel digital TV recorder
customers.
India’s first High
Definition (HD) box with
Dolby digital plus offering 7.1 channels of surround sound for airtel digital
TV customers.
MAMO (My Airtel My
Offer) is
i-Care was
deployed across all countries of operation – the objective of the programmes is
to bring about a cultural transformation across the Company by putting the
customer as the first priority and taking personal ownership to resume customer
issues.
OTHER COMPANY
DEVELOPMENTS
·
The Company became a global telecom operator by
completing acquisition of Zain Group’s (“Zain”)
mobile operations in 15 countries across Africa in June 2010 and Telecom Seychelles Limited, a leading
telecom operator in
·
The Company launched its New Vision for India and
South Asia ‘By 2015, airtel will be the
most loved brand, enriching the lives of millions’ inspiring and
directing all stakeholders for the next stage of growth.
·
The Company also launched its vision for
AWARDS AND
RECOGNITIONS
·
The Company was conferred with many awards and
recognitions during the year. Some of them are listed below:
·
At the GSMA in
·
Five awards at the Telecom Operator Awards 2011
constituted by tele.net, including ‘Most
Admired Telecom Operator’, ‘Best National Mobile Operator’, ‘Best VAS
Provider’, ‘Best Enterprise Services Provider’ and ‘Operator with Best Rural Performance’.
·
ET Telecom Awards 2011 in categories of ‘Customer experience Enhancement’ and ‘Innovative VAS Product’.
·
‘Most Preferred Cellular
Service Provider Brand’ award in the CNBC Awaaz Consumer Awards 2010 for
the 6th year in a row.
·
‘Top Telecom Company’ 4th year in a row
by NDTV Profit Business Leadership Awards 2010.
·
‘CIO 100 Award’ instituted by CIO
magazine for innovative practices at the Annual CIO 100 Awards.
·
Four awards at the Annual Voice and Data Telecom
Awards 2010 - 'Top Cellular Service
Provider', 'Top Telecom Service Provider' and 'Top NLD and VSAT Service
Provider'.
·
‘
·
Ranked amongst the top five firms in Corporate
Reputation in
·
Rated as one of the top 5 best employers in the Aon Hewitt Best Employers in India
2011 study.
·
Ranked amongst the top 10 companies in ‘the Best Companies to Work For’ survey by
Business Today in 2011.
·
‘Small Business
Technology Partner of the Year award’ at the Franchise India’s Small Business
Congress 2010.
·
airtel digital TV was voted the favorite DTH service by customers in
key metros in a nationwide customer satisfaction survey by MaRS on
MANAGEMENT
DISCUSSION AND ANALYSIS
ECONOMIC OVERVIEW
The global economy
is on a clear track of revival with a continued dual speed recovery. As per the
International Monetary Fund (IMF), the world economy grew by 5% in 2010, led by
7.1% growth of emerging economies and a 3% growth of advanced economies. After
a year of debt crises in Europe and mixed news about the quality of the
With the maturing
of emerging nations, financial power and consumption is increasingly shifting
from West to East – from aging
industrial nations to emerging industrial powers in Asia, South America and
INDIAN TELECOM
SECTOR
Financial year
2011 saw the continuance of strong customer growth for the Indian telecom
market, which witnessed a 36% increase in its customer base during the 12-month
period. The total telecom customer base in
While wireline
customers decreased by 6%, the growth of the telecom sector was fuelled by the
wireless segment. The wireless segment crossed the 800 Mn customer mark with
812 Mn customers as at end of March 31, 2011. The wireless segment grew by 39%
during the year, contributing nearly 96% of the total telecom customer base.
The telecom rural penetration at 33.8% at end of March 31, 2011 offers huge
growth potential in terms of both customers and usage.
Growth in
broadband services has been very low with 12 Mn broadband customers
representing a broadband penetration of just 1% however the potential for
growth is high. The impending rollout of the wireless broadband using TDD LTE
technology coupled with the mobile platform leveraging 3G is likely to provide
an impetus to broadband penetration.
With the advent of
3G services in
Given the huge
growth potential offered by the telecom industry through increased coverage and
newer products and services, the competition will remain intense with both
existing and new players attempting to maximize their share of the growing
telecom market.
AFRICAN TELECOM
SECTOR
Year 2011
continued to experience growth in African telecom market. The total customer
base grew 17% over the 12-month period. The total telecom customer base stood
at 205 Mn as at end of March 2011.
Though a few
countries have very high penetration, due to higher GDP per capita and
relatively smaller population or multi – sim environment, penetration in outer
markets where the Company operates is still low. Of 16 African countries where
Airtel operates, only 7 countries (Congo B,
and
The competitive
intensity in each of the sixteen countries varies from 2 to 10 players. There
have been no major competition launches during the year.
REVIEW OF
OPERATIONS
Subject put up a
strong performance in the financial year 2010-11. The Company entered the
league of global telcos by completing the acquisition of Zain Group’s (“Zain”)
mobile operations in 15 countries across
As on March 31,
2011, the Company had an aggregate of 220.9 Mn customers consisting of 211.9 Mn
Mobile, 3.3 Mn Telemedia and 5.7 Mn Digital TV customers. Its total customer
base as on March 31, 2011 increased by 61% compared to the customer base as on
March 31, 2010.
The Company
reported a net income of Rs.60467 Millions for the full year ended March 31,
2011, with a Y-o-Y decline of 33% due to increase in net finance charges
(excluding forex restatement losses) (Rs.14802 Millions), Forex restatement
losses (Rs.6833 Millions), re-branding expenses (Rs.3395 Millions) and increase
in spectrum charges in India (Rs.2650 Millions).
SEGMENT-WISE
PERFORMANCE
Mobile Services (
The Company offers
mobile services using GSM technology in South East Asia across
During the
financial year gone by, the Company had acquired 3G licenses in 13 telecom
services areas of the total 22 service areas (Delhi, Mumbai, Tamil Nadu, Karnataka, Andhra Pradesh, UP (West),
Rajasthan, West Bengal, Himachal Pradesh, Bihar, Assam, North East and Jammu
and Kashmir) and BWA licenses in 4 telecom service areas (Maharashtra, Kolkata, Punjab, Karnataka) in
India at a total cost of Rs.156.1 Bn (USD 3.3 Bn). The Company has recently
launched 3G services in key cities of the country offering host of innovative
services like Mobile TV entertainment, video calls, live streaming of videos,
high definition gaming along with access to high speed internet.
Airtel Sri Lanka
expanded its presence to all the 25 administrative districts of
Airtel
The Company
registered a year on year growth of 9% in revenues despite growing competition
from new entrants and declining realised rates per minute.
Mobile Services (
The Company offers
mobile services using GSM technology in
African operations
are witnessing growth momentum over the past few quarters. The growth is fueled
by the new brand identity and the Company’s commitment to the network
expansion.
Telemedia Services
The Company
provides broadband (DSL), data and telephone services (fixed line) in 87 cities
with concerted focus on the various data solutions for the Small and Medium
Business (SMB) segment.
It had 3.3 Mn
customers as at March 31, 2011 of which 43.1% subscribed to its
broadband/internet services.
The product
offerings in this segment include fixed-line telephones providing local,
national and international long distance voice connectivity, broadband internet
access through DSL; internet leased lines as well as MPLS (Multiprotocol Label
Switching Solutions).
The Company
remains strongly committed to its focus on the SMB segment by providing a range
of telecom and software solutions and aim to achieve revenue leadership in this
rapidly growing segment of the ICT (Information and Communications Technology)
market. The strategy of the telemedia services business unit is to focus on
cities and commercial pockets with high revenue potential.
The revenue growth
of 6% year on year in telemedia services is mainly attributable to strong
off-take of data services. Telemedia services ended the fi nancial year with
data revenues contributing over 50% of the total telemedia revenues in the last
quarter of FY 2010-11.
Enterprise
services owns a state of the art national and international long distance
network infrastructure, enabling it to provide connectivity services both
within India and connecting India to the world.
The international
infrastructure includes ownership of the i2i submarine cable system connecting
Chennai to Singapore, consortium ownership of the SMW4 submarine cable system
connecting Chennai and Mumbai to Singapore and Europe, and investments in new
cable systems such as Asia America Gateway (AAG), India Middle East and Western
Europe (IMEWE), Unity North, EIG (Europe India Gateway) and East Africa
Submarine System (EASSy) expanding the Company’s global network to over 225,000
Rkms, covering 50 countries across 5 continents. Revenues from enterprise
services for the financial year ended March 31, 2011 were Rs.41292 Mn and
represented a year on year decline of 8%.
While the Indian
economy has been relatively insulated from the global economic slowdown, large
corporates did however exercised caution in IT and Telecom spends which had its
impact in FY11. Additionally, this segment witnessed the entry of some of the
established mobile players in this segment resulting in increased competition
and aggressive pricing.
All this had
attributed to the decline in revenues in FY11. With clear signs of revival
world wide and the Company’s growing focus of being global network solution
provider, the segment is well placed to be back on the growth trajectory.
Digital TV
Services
Airtel Digital TV
breached the coveted 5 Mn customer mark in FY11, in just 21 months of its
national operations, fastest ever by any operator. The Company added 3.1 Mn
digital TV customers during FY 2010-11 taking its total customer base to 5.7 Mn
customers as at end of March 31, 2011. The Company added every 4th new customer
joining the Direct-To-Home (DTH) platform despite stiff competition and
aggressive pricing. Airtel is the first company in
Passive Infrastructure
Services
Bharti Infratel
Limited, a subsidiary of Bharti Airtel, provides passive infrastructure
services on a non-discriminatory basis to all telecom operators in
Bharti Infratel
deploys, owns and manages telecom towers and communications structures in 11
circles of
Bharti Infratel
had 32,792 towers in 11 circles as at end of March 31, 2011, excluding the
35,254 towers in 11 circles for which the right of use has been assigned to
OUTLOOK
As a market leader
in the Indian Telecom space, Subject’s outlook is promising and is in line with
future growth potential of the sector. Emerging markets of
Rated as a pioneer
in bringing life enriching telecom products and services for the customers, airtel
will continue its journey with Commerce and Entertainment verticals. 3G and BWA
licenses will further usher a new era of content rich applications and services
for the customers. With stronger emphasis on Data business across domestic and
international markets, the Company believes data will be a key driver of
overall growth.
With its business
offerings across the entire telecom spectrum to retail and institutional
customers and geographic spread spanning most of the urban and rural
As regard the
FIXED ASSETS
·
·
·
Building
·
Leasehold Improvements
·
Plant and Machinery
·
Computers
·
Office Equipment
·
Furniture and Fixture
·
Vehicles
AUDITED FINANCIAL
RESULTS FOR THE QUARTER ENDED ON JUNE 30, 2011
(Rs. in Millions)
|
Particulars |
Quarter Ended AS on 30.06.2011 Audited |
Year Ended AS on 31.03.2011 Audited |
|
1. a. Net Sales / Income from operations |
101800.000 |
380158.000 |
|
|
|
|
|
2. Total expenditure |
81559.000 |
292504.000 |
|
a. Employee costs |
3870.000 |
14512.000 |
|
b. Depreciation |
11707.000 |
41937.000 |
|
c. License Fees and Spectrum Charges |
11622.000 |
42903.000 |
|
d. Access and Interconnection Charges |
13493.000 |
49872.000 |
|
e. Network Operating Expenses |
23974.000 |
85712.000 |
|
f. Sales and Marketing |
7815.000 |
31802.000 |
|
g. Administration and Others |
6379.000 |
21136.000 |
|
h. Other Expenditure including Amortisation |
2699.000 |
4630.000 |
|
|
|
|
|
|
|
|
|
3. Profit / (loss) from Operations before
Other Income, Interest and Exceptional Items (1-2) |
20241.000 |
87654.000 |
|
|
|
|
|
4. Other income |
190.000 |
1129.000 |
|
|
|
|
|
5. Profit / (loss) before Interest and
Exceptional Items (3+4) |
20431.000 |
88783.000 |
|
|
|
|
|
6. Interest
Expenses / (Income) Net |
2033.000 |
1525.000 |
|
|
|
|
|
7. Profit after Interest but before Exceptional
Items and Tax |
18398.000 |
87258.000 |
|
|
|
|
|
8. Exceptional items |
-- |
-- |
|
|
|
|
|
9. Profit / ( loss ) from Ordinary
Activities before tax |
18398.000 |
87258.000 |
|
|
|
|
|
10. Tax Expense |
4075.000 |
10089.000 |
|
|
|
|
|
11. Net profit / ( loss ) from ordinary
activities after tax |
14323.000 |
77169.000 |
|
|
|
|
|
12. Extraordinary Items (Net of tax
expenses) |
-- |
-- |
|
|
|
|
|
13. Net Profit/ (Loss) for the period |
14323.000 |
77169.000 |
|
|
|
|
|
14. Paid up Equity share capital ( Face
Value Rs.5 / each ) |
18988.000 |
18988.000 |
|
|
|
|
|
15. Reserve excluding Revaluation Reserves
including employee stock option outstanding
|
436576.000 |
422107.000 |
|
|
|
|
|
16. Earnings Per Share (EPS) |
|
|
|
a) Basic & Diluted EPS before
Extraordinary items |
|
|
|
i) Basic |
3.772 |
20.321 |
|
ii) Diluted |
3.772 |
20.321 |
|
|
|
|
|
a) Basic & Diluted EPS after
Extraordinary items |
|
|
|
i) Basic |
3.772 |
20.321 |
|
ii) Diluted |
3.772 |
20.321 |
|
|
|
|
|
17. Public Shareholding |
|
|
|
- No. of shares |
1204117754 |
1204117754 |
|
- Percentage of shareholding |
31.71% |
31.71% |
|
|
|
|
|
18. Promoters and promoter group |
|
|
|
Shareholding |
|
|
|
a) Pledged/Encumbered |
|
|
|
- Number of shares |
Nil |
Nil |
|
- Percentage of shares (as a % of the total
shareholding of promoter & promoter group) |
Nil |
Nil |
|
- Percentage of shares (as a % of the total
share capital of the company |
Nil |
Nil |
|
|
|
|
|
b) Non-encumbered |
|
|
|
- Number of shares |
2593412342 |
2593412342 |
|
- Percentage of shares (as a % of the total
shareholding of promoter & promoter group) |
100% |
100% |
|
- Percentage of shares (as a % of the total
share capital of the company |
68.29% |
68.29% |
AUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED ON JUNE 30, 2011
(Rs. in Millions)
|
Particulars |
Quarter Ended AS on 30.06.2011 Audited |
Year Ended AS on 31.03.2011 Audited |
|
1. SEGMENT REVENUE : |
|
|
|
Net Sales/income from each segment |
|
|
|
a) Mobile Services |
89777.000 |
332.959.000 |
|
b) Telemedia Services |
9398.000 |
36117.000 |
|
c) |
9780.000 |
39353.000 |
|
d) Others |
0.000 |
378.000 |
|
Total |
108955.000 |
408807.000 |
|
Less: Inter segment Eliminations |
6965.000 |
27520.000 |
|
Net Sales / Income |
101990.000 |
381287.000 |
|
|
|
|
|
2. SEGMENT RESULTS (Profit before tax, interest and exceptional item
from each segment) |
|
|
|
a) Mobile Services |
20096.000 |
85400.000 |
|
b) Telemedia Services |
2221.000 |
8285.000 |
|
c) |
211.000 |
4275.000 |
|
d) Others |
(2097.000) |
(9177.000) |
|
Total |
20431.000 |
88783.000 |
|
Less: |
|
|
|
Interest |
2033.000 |
1525.000 |
|
Total Profit Before Tax |
18398.000 |
87258.000 |
|
|
|
|
|
3. Capital Employed (Segment Assets - Segment Liabilites)* |
|
|
|
a) Mobile Services |
273327.000 |
285323.000 |
|
b) Telemedia Services |
78377.000 |
78054.000 |
|
c) |
13985.000 |
12010.000 |
|
d) Others** |
73788.000 |
46269.000 |
|
|
|
|
|
Total |
439477.000 |
421656.000 |
* Does not include inter segment assets and liabilities
** Includes borrowings for 3G and BWA licences of Rs.61879 millions and Rs.63765 millions, as at June 30, 2011, March 31, 2011, respectively.
BUSINESS
DESCRIPTION
Subject is a telecommunication service provider in
BOARD OF DIRECTORS
Mr. Sunil Bharti
Mittal
Executive Chairman of the Board, Managing Director
Mr. Sunil Bharti Mittal is Executive Chairman and Managing Director of
subject is the Founder, Subject. He Chairman and CEO of Bharti Enterprises.
Sunil has been awarded the Padma Bhushan, one of
Mr. Nikesh Arora
Independent Non-Executive Director
Mr. Nikesh Arora was Independent Non-Executive Director and a member of
the HR Committee and ESOP Compensation Committee subject. Mr. Nikesh oversees
all revenue and customer operations as well as marketing and partnerships at
Google. Since joining in 2004, he has held several positions with the Company.
Most recently, he led Google's global direct sales operations. He also
developed and managed the Company's operations in the European, Middle Eastern
and African markets and was responsible for creating and expanding strategic
partnerships in those regions. Prior to joining Google, he held senior and
management positions in T-Mobile and Deutsche Telekom. Mr. Nikesh holds a
master's degree with distinction from
Education
MBA , Northeastern University
M,
BS Electrical Engineering,
Ms. Sock Koong Chua
Non-Executive Director - Representative of Singtel
Ms. Chua Sock Koong is Non-Executive Director of subject since May 2001
nominated by Singtel. Ms. Sock Koong joined SingTel in June 1989 as Treasurer
and was promoted to Chief Financial Officer in April 1999. She held the
positions of Group CFO and CEO International from February 2006 until October
12, 2006, when she was appointed Deputy Group CEO. She was appointed as SingTel
Group CEO in April 2007. Sock Koong holds a 1st Class Honours Degree in
Accountancy from the
Education
B,
Mr. Craig E.
Ehrlich
Independent
Non-Executive Director
Mr. Craig Ehrlich was Independent Non-Executive Director of subject,
since April 29, 2009. He is the Chairman of the Board HR Committee and a member
of the Board ESOP Compensation Committee. Craig is the former long time
Chairman of the GSMA, the global trade association representing second and
third generation network operators, manufacturers and suppliers. He has served
as a board member of Hutchison Telecoms Group Holdings Limited since 2003 and
now advises the group’s 3G and 2G businesses worldwide. Mr. Craig is a board
member of Eastern Telecom and Philweb in
Education
M , Occidental College
BA ,
Mr. Akhil Gupta
Deputy Group CEO, Managing Director of Bharti Enterprises, Non-Executive
Director
Mr. Akhil Gupta Non Executive Director of subject. Mr. Gupta is the
Deputy Group CEO and Managing Director of Bharti Enterprises and a
non-executive director of subject. He has been closely associated with
strategy, finance, mergers and acquisitions and business performance for the
group. He has spearheaded the transformational initiatives including the
outsourcing deals in the areas of IT, network management and customer service
management. He is the Managing Director of subject and a director of
Education
Mr. Manoj
Kohli
Joint Managing Director, Chief Executive Officer - International, Executive Director
Mr. Manoj Kohli is Joint Managing Director, Chief Executive Officer -
International, Executive Director of subject effective April 1, 2010. He is
heading the newly formed International Business Group. Prior to joining
subject, he worked with the Shriram Group (where he started his career in
1979), Allied Signal/Honeywell and Escotel in senior leadership positions.
Manoj was the Chairman - Confederation of Indian Industry (CII) National
Committee on Telecom and Broadband. He was a member of the Board of GSM
Association (GSMA) in 2008. He was the Chairman of the Cellular Operators
Association of India (2001-02). Manoj is a member of the Academic Council of
the Faculty of Management Studies (FMS) and Shri Ram College of Commerce,
Education
MBA ,
B ,
Law,
Mr. N.
Kumar
Independent Non-Executive Director
Shri. N. Kumar is Independent Non-Executive Director of subject and
member of the Audit Committee since 2001. A well-known industrialist, Kumar is
the Vice-Chairman of the Sanmar Group with interests in chemicals, engineering
and shipping. Mr. Kumar is an active spokesperson of industry and trade and was
the president of Confederation of Indian Industry (CII), a industrial body. He
participates in various other apex bodies and is also on the Board of various
public companies. He is the Honorary Consul General of Greece in Chennai. Mr.
Kumar is an Electronics and Communication Engineer from
Education
BE Electronics and Communications Engineering,
Mr. Ajay
Lal
Independent Non-Executive Director
Mr. Ajay Lal is Independent Non-Executive Director of subject. He is a
Senior Partner and Managing Director of AIF Capital and has over 20 years
experience in private equity, project finance and corporate banking. Prior to
joining AIF Capital in 1997, Ajay worked with AIG Investment Corporation and
Bank of America respectively. Mr. Ajay has represented AIF Capital on the
boards of a number of large corporations across
Education
MBA , Indian Institute of Management,
Indian
Mr. Rakesh
Bharti Mittal
Vice-Chairman, Managing Director of Bharti Enterprises, Non-Executive Director
Mr. Rakesh Bharti Mittal is Vice-Chairman, Managing Director
of Bharti Enterprises, Non-Executive Director of subject. He is a non-executive
director and a member of the Board Audit Committee of Bharti Airtel. He is the
Chairman of Bharti AXA Life Insurance, Bharti AXA General Insurance, FieldFresh
Foods, Comviva Technologies, Centum Learning and Beetel Teletech. Mr. Rakesh is
the Chairman of Confederation of Indian Industry (CII)'s National Council for
Agriculture. He is a member of the Agricultural and Processed Food Products
Export Development Authority (APEDA). Rakesh is a member of the Executive Board
of the Indian School of Business (ISB) and the Co-chairman of Bharti School of
Telecommunication Technology and Management. He is also on the Advisory Board
of the Indian Institute of Technology (IIT) and Southern Methodist University
(SMU),
Mr. Rajan Bharti
Mittal
Vice Chairman, Managing Director of Bharti Enterprises, Non-Executive
Director
Mr. Rajan Bharti Mittal is Vice Chairman, Managing Director of Bharti
Enterprises, Non-Executive Director of subject. He is a non-executive director,
Chairman of the Board ESOP Compensation Committee and a member of the Board HR
Committee of subject. He is a graduate from
Education
Mr. Pulak Chandan
Prasad
Independent Non-Executive Director
Mr. Pulak Chandan Prasad is Independent Non-Executive Director of
subject and a member of the Board Audit Committee. He initially joined the
Board as a nominee of Warburg Pincus in November 2001. He is the Founder and
Managing Director of Nalanda Capital, a
Education
B Technology, Indian Institute of Technology,
Ms. Tan Yong Choo
Non-Executive Director - Representative of SingTel
Ms. Tan Yong Choo is Non-Executive Director - Representative of SingTel
for subject since January 2010. She is also a member of the Board Audit
Committee. She has a wide range of working experience gained from her stints in
international accounting firms as well as in multinational corporations. She
began her career with SingTel in November 1994 and was appointed to her current
role as Group Financial Controller in June 2007, with responsibilities for the
Group’s financial functions including reporting, planning and forecasting. She
also provides high level financial advice that would affect operations and is
primarily responsible for financial policies and procedures. Prior to joining
SingTel, Yong Choo worked for several years in international accounting firms,
Coopers and Lybrand and Arthur Anderson. Ms. Yong Choo holds a Second Class
Honours Degree in Accountancy from the National University of Singapore and is
a Certified Public Accountant.
Education
Mr. Sanjay Kapoor
Deputy Chief Executive Officer
Mr. Sanjay Kapoor has been appointed as Chief Executive Officer -
Education
MBA ,
B Commerce,
PRESS RELEASE
STRONG UPWARD TREND IN REVENUE ACROSS GEOGRAPHIES
Bharti Airtel
announces consolidated IFRS results for the first quarter ended June 30, 2011
Highlights for the first quarter ended June 30, 2011
·
Overall
customer base stands at 230.8 million, across
19 countries
·
Total
minutes on network at 252 billion, up by 5% (11.7 billion) over Q4 FY11
·
Total
revenues at $3,796 million, up by 38.6% Y-o-Y
·
Consolidated
EBITDA of $1,276 million, up by 28.3% Y-o-Y
·
·
Bharti Airtel Limited (“Bharti Airtel” or “the Company”)
today announced its audited consolidated IFRS results for the first quarter
ended June 30, 2011.
The consolidated total revenues for the first quarter ended
June 30, 2011 of $3,796 million grew by 38.6% over last year.
The income before taxes for Q1 FY12 came in at $384 million
(Q1 FY11: $445 million). On a Y-o-Y basis the income before taxes dropped
mainly on account of: higher interest outgo ($77 million) caused by the Africa
acquisition and 3G investments in
The Consolidated Operating Free Cash Flow for the first three
months was at $304 million. Continued robust cash generation has resulted in
improvement of the Net Debt – Equity ratio to 1.20 (1.38 as on June 30, 2010)
and Net Debt - EBITDA ratio to 2.77 (2.86 as on June 30, 2010).
In a statement, Mr. Sunil
Bharti Mittal, Chairman and Managing Director, Bharti Airtel Limited, said
“Bharti Airtel has started this fiscal year on a stable note. Revenue growth
has been steady across all geographies, with
Summary of the Consolidated Statement of Income – represents
consolidated Statement of Income as per International Financial Reporting Standards
(IFRS)
(Amount in $ million, except ratios)
|
Particulars |
Quarter Ended |
Y-o-Y Growth* |
|
|
|
June
2011 |
June
2010 |
|
|
Total revenues |
3796 |
2627 |
38.6% |
|
EBITDA |
1276 |
954 |
28% |
|
Cash profit from operations |
1085 |
864 |
20% |
|
Income before income taxes |
385 |
445 |
(17%) |
|
Net income |
272 |
361 |
(28%) |
Customer Base
|
Parameters |
Unit |
June 30, 2011 |
Mar 31, 2011 |
Q-o-Q Growth |
June 30, 2010 |
Y-o-Y Growth |
|
Mobile Services |
000's |
221247 |
211919 |
4% |
176975 |
25% |
|
|
000's |
174941 |
167713 |
4% |
140613 |
24% |
|
|
000's |
46306 |
44206 |
5% |
36362 |
27% |
|
Telemedia Services |
000's |
3322 |
3296 |
1% |
3153 |
5% |
|
Digital TV Services |
000's |
6262 |
5663 |
11% |
3244 |
93% |
|
Total |
000's |
230831 |
220877 |
5% |
183372 |
26% |
BHARTI AIRTEL
SUFFERS SIXTH STRAIGHT QUARTERLY LOSS; WEIGHT OF HUGE DEBT MAY EASE ON TARIFF
HIKE IN
04 August 2011
Aug. 04--
Devastated by the
orgy of tariff cuts in the past few years and groaning under the weight of
debt, Indian mobile firms have started to slowly increase prices, ending two
years of savage price wars that destroyed industry margins and affected sales
and profitability of all telcos.
Bharti was first
off the block last month, followed by Vodafone and Idea Cellular. The hikes
were only modest, but enough to spark hopes of a revival.
Bharti shares
tumbled 4.39 percent intra-day on Wednesday before recovering 3.3 percent to
end the day down 1.23 percent at Rs 426.75. "From call rates point of
view, I think we have seen the bottom and big players like Bharti will be the
major beneficiaries of the revival in the pricing power," Jagannadham Thunuguntla,
head of research at SMC Global in Delhi, told ET.
Investors were
also impressed by sales growth in its key operations,
Sangeeta Tripathi,
an analyst at Mumbai-based brokerage Sharekhan, said Bharti's headline numbers
were all below expectations but its longterm trajectory for the domestic market
was positive as tariff hikes were sustainable and were unlikely to see any
downward revision in the future.
Bharti Airtel's
net income for the three months ended June 2011 fell 27.76 percent to
Rs.12150.000 millions due to higher interest outgo of Rs.3440.000 millions and
amortisation of 3G licence fee of Rs.1590.000 millions, the company said.
Compared with the
January-March quarter, net income is down more than 15 percent. The company was
an aggressive bidder for third-generation data services, which it began to roll
out in October-December quarter last year. It now plans to ramp up its coverage
to 500 towns during this fiscal year.
Sales jumped 39
percent to Rs.169750.000 millions. But sales for the June 11 quarter cannot be
strictly compared with the same period previous year when only 22 days of
Zain's results were reflected in Bharti's performance. Earnings before
interest, tax, depreciation and amortisation fell marginally to 33.6 percent.
"In
In its annual
report released this week, Mittal said hyper competition in
"All
corporate directors and chief executive officers (Asia and
High costs in
Bharti had set a
target of $5 billion in revenues and $2 billion in core earnings, or EBIDTA,
for the year to March-end 2013 from its African operations acquired last year
from Kuwait'sZain Telecom for $9 billion.
2Q11
04 August 2011
Research and Markets has announced the addition of IE Market
Research Corp.'s new report "2Q11 Bangladesh Mobile Operator Forecast,
2011 - 2015: Bangladesh to have 97.4 million mobile subscriber connections in
2015 with Grameenphone taking 38.3% market share" to their offering.
Mobile Operator Forecast on
BHARTI AIRTEL
LIMITED INKS FIVE YEAR AGREEMENT WITH ERICSSON FOR
Jul 21, 2011
Financial Chronicle reported that Bharti Airtel Limited signed a five-year
service management agreement with Ericsson. As per the agreement, Ericsson will
manage and optimise Airtel's mobile networks in
BHARTI AIRTEL
LIMITED OFFERS TO LIST UNIT BHARTI HEXACOM-DJ
Jul 14, 2011
Dow Jones reported that Bharti Airtel Limited has offered to list unit Bharti
Hexacom Limited to provide an exit option for its minority joint-venture
partner in that company, the state-run Telecommunication Consultants of India
Ltd. (TCIL), the Economic Times reported. Bharti is offering to list 25% of
TCIL's 30% holding on stock exchanges. Bharti Airtel holds 70% of Bharti
Hexacom and TCIL the remainder.
VODAFONE GROUP PLC
SIGNS MUTUAL 3G ROAMING PACTS WITH BHARTI AIRTEL LIMITED, IDEA CELLULAR
LIMITED-DJ
Jul 14, 2011
Dow Jones reported that Vodafone Group Plc signed agreements with rivals Bharti
Airtel Limited and Idea Cellular Limited for roaming services, so that each of them
can offer third-generation mobile-phone services to subscribers in areas where
they currently don't have the required bandwidth and licenses. The agreements,
which also cover service areas where Vodafone-Essar Limited has the 3G
bandwidth, will help the company provide services to its users across the
country, it said in an emailed statement.
BHARTI AIRTEL LIMITED
PLANS TO RAISE $1 BILLION BY SELLING 10% OF COMPANY IN IPO-DJ
Jul 11, 2011
Dow Jones reported that Bharti Infratel Limited declined to comment on a media
report which said it is planning a $1 billion (INR45 billion) initial public
offering (IPO) to sell a 10% stake. Earlier in the day, the Economic Times
newspaper said the telecom tower infrastructure unit of Bharti Airtel Limited
is planning the public listing partly to provide an exit to shareholders. Apart
from a partial stake sale by private equity firms, the company may also issue
fresh shares, it said.
BHARTI AIRTEL
LIMITED'S BHARTI INFRATEL EYES $500 MILLION IPO-REUTERS
Jul 10, 2011
Reuters reported that Bharti Infratel, the mobile phone tower arm of Bharti
Airtel Limited, plans an initial public offering (IPO) for at least $500
million and is expected to file regulatory papers in September or October.
Standard Chartered and Morgan Stanley are among the frontrunners to help manage
the initial public offering.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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.44.80 |
|
|
1 |
Rs.72.86 |
|
Euro |
1 |
Rs.63.11 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--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 |
|
66 |
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 EXPLANATIONS
|
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 |
Capability to overcome financial difficulties seems comparatively below
average. |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.