MIRA INFORM REPORT
|
Report Date : |
16.09.2013 |
IDENTIFICATION DETAILS
|
Name : |
BHARTI AIRTEL LIMITED |
|
|
|
|
Formerly Known
As : |
BHARTI
TELE-VENTURES LIMITED |
|
|
|
|
Registered
Office : |
Bharti Crescent, 1, Nelson Mandela Road, Vasant Kunj, Phase II, New
Delhi – 110070, India |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
07.07.1995 |
|
|
|
|
Com. Reg. No.: |
55-070609 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.18988.000 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L74899DL1995PLC070609 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
DELB04730F |
|
|
|
|
Legal Form : |
A Public Limited
Liability Company. The Company’s
shares are listed on the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Subject
is engaged in providing telecommunication systems and services. |
|
|
|
|
No. of Employees
: |
24538
(Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (68) |
|
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 2165848000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Exist |
|
|
|
|
Comments : |
Subject is an established company having good track record. There appears some dip in the profit of the company. However, Financial
position of the company is strong and healthy. Directors are reported as
experienced and respectable businessmen. Trade relations are fair. Business is active. Payment terms are
reported as per commitment. The company can be considered good for normal business dealing 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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
We are living in a
world where volatility and uncertainty have become the New Normal. We saw
a change of government in countries like
There is another
megatrend happening. The World order is changing as economic power shifts from
West to East. According to McKinsey study, it took
The years after the
outbreak of the global financial crisis, the world economy continues to remain fragile.
The Indian economy demonstrated remarkable resilience in the initial years of
the contagion but finally lost ground last year. GDP growth slowed down.
Currency has been weakening. There is a marked deceleration in agriculture,
industry and services. Dampening sentiment led to a cut-back in investment as
well as private consumption expenditure. Inflation remained at high
levels fuelled by the pressure from the food and fuel sectors. The large fiscal
and current account deficit s continued to cause grave concern. It is
imperative that
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
AA+ = Long Term Rating |
|
Rating Explanation |
High credit quality and low credit risk |
|
Date |
24.01.2013 |
|
Rating Agency Name |
CRISIL |
|
Rating |
A1+ = Short Term Rating |
|
Rating Explanation |
Very strong degree of safety and lowest
credit risk |
|
Date |
24.01.2013 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office / Corporate Office : |
|
|
Tel. No.: |
91-11-46666100 /
42666500 |
|
Fax No.: |
91-11-41666137 |
|
E-Mail : |
|
|
Website : |
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|
|
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|
Branch Office : |
Located At:
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|
|
|
|
Circle Offices : |
Located at
|
DIRECTORS
As on 31.03.2013
|
Name : |
Mr. Sunil Bharti Mittal |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr. Manoj Kohli |
|
Designation : |
CEO (International) and Joint Managing Director |
|
|
|
|
Name : |
Mr. Gopal Vittal |
|
Designation : |
Joint Managing Director and CEO (India) |
|
|
|
|
Name : |
Mr. Ajay Lal |
|
Designation : |
Non-Executive Director |
|
Date of Birth / Age : |
08.08.1961 |
|
Qualification : |
|
|
Experience : |
Management, Private Equity, Project Finance and Corporate Banking |
|
|
|
|
Name : |
Ms. Chua Sock Koong |
|
Designation : |
Non-Executive Director |
|
|
|
|
Name : |
Mr. Craig Edward Enrich |
|
Designation : |
Non-Executive Director |
|
Date of Birth / Age : |
14.05.1955 |
|
Qualification : |
|
|
|
|
|
Name : |
Mr. Manish Kejriwal |
|
Designation : |
Non-Executive Director |
|
|
|
|
Name : |
Mr. Nilesh Arora |
|
Designation : |
Non-Executive Director |
|
Date of Birth / Age : |
09.02.1968 |
|
Qualification : |
|
|
|
|
|
Name : |
Ms. Obiageli Ezekwesili |
|
Designation : |
Non-Executive Director |
|
|
|
|
Name : |
Mr. Pulak Prasad |
|
Designation : |
Non-Executive Director |
|
|
|
|
Name : |
Mr. Rajan Bharti Mittal |
|
Designation : |
Non-Executive Director |
|
Date Of Birth : |
05.01.1960 |
|
Qualification : |
|
|
|
|
|
Name : |
Ms. Tan Yong Choo |
|
Designation : |
Non-Executive Director |
|
|
|
|
Name : |
Mr. Tsun-yan
Hsieh |
|
Designation : |
Non-Executive
Director |
KEY EXECUTIVES
|
Name : |
Mr. Sanjay Kapoor |
|
Designation : |
CEO ( |
|
|
|
|
Name : |
Mr. Mukesh
Bhavnani |
|
Designation : |
Group General
Counsel and Company Secretary |
MAJOR SHAREHOLDERS
As on 30.06.2013
|
Category
of Shareholder |
No. of Shares |
% of
Holding |
|
|
|
|
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
1741830892 |
43.57 |
|
|
1741830892 |
43.57 |
|
|
|
|
|
|
857180286 |
21.44 |
|
|
8493000 |
0.21 |
|
|
8493000 |
0.21 |
|
|
865673286 |
21.66 |
|
Total
shareholding of Promoter and Promoter Group (A) |
2607504178 |
65.23 |
|
(B)
Public Shareholding |
|
|
|
|
|
|
|
|
115136811 |
2.88 |
|
|
2286664 |
0.06 |
|
|
208977575 |
5.23 |
|
|
649103321 |
16.24 |
|
|
975504371 |
24.40 |
|
|
|
|
|
|
148984742 |
3.73 |
|
|
|
|
|
Individual shareholders
holding nominal share capital up to Rs.0.100 Million |
38656364 |
0.97 |
|
Individual shareholders
holding nominal share capital in excess of Rs.0.100 Million |
10097407 |
0.25 |
|
|
216653040 |
5.42 |
|
|
55 |
0.00 |
|
|
204952716 |
5.13 |
|
|
2928186 |
0.07 |
|
|
4317529 |
0.11 |
|
|
4454554 |
0.11 |
|
|
414391553 |
10.37 |
|
Total
Public shareholding (B) |
1389895924 |
34.77 |
|
Total
(A)+(B) |
3997400102 |
100.00 |
|
(C)
Shares held by Custodians and against which Depository Receipts have been
issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total
(A)+(B)+(C) |
3997400102 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject
is engaged in providing telecommunication systems and services. |
GENERAL INFORMATION
|
No. of Employees : |
24538 (Approximately) |
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Bankers : |
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||||||||||||
|
Facilities : |
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|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
S. R. Batliboi And Associates Chartered Accountants |
|
|
|
|
Internal Auditors 1 : |
|
|
Name : |
Price Waterhouse Coopers Private Limited Chartered Accountants |
|
|
|
|
Internal Auditors 2 : |
|
|
Name : |
ANB Consulting Private Limited Chartered Accountants |
|
|
|
|
Entities where control exist – Subsidiary/
Subsidiaries of Subsidiary : |
|
|
|
|
|
Other subsidiaries of Bharti Airtel Africa B.V.: |
|
|
|
|
|
Associates/Associate
of Subsidiary : |
|
|
|
|
|
Joint
Ventures/Joint Venture of Subsidiary : |
|
|
|
|
|
Entities where Key Management Personnel and their
relatives exercise significant influence/Group Companies : |
|
|
|
|
|
Entities having significant influence over the
Company : |
|
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%.
CAPITAL STRUCTURE
As on 31.03.2013
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: 21474527 Equity shares of Rs. 10 each are
alloted as fully paid-up shares upon the conversion of Foreign Currency
Convertible Bonds (FCCBs) (42949054 equity shares post share split of one
equity share of Rs. 10 each into 2 equity shares of Rs. 5 each).
a)
Reconciliation of
the number of shares outstanding at the beginning and at the end of the
reporting period
|
Equity Shares |
No.
of Shares |
Rs.
In Millions |
|
At the beginning of the year |
3797530096 |
18988.000 |
|
Issued during the year |
- |
- |
|
Outstanding at the end of the year |
3797530096 |
18988.000 |
b)
Terms / rights
attached to the equity Shares / Global depository shares (GDS)
The Company has only
one class of equity shares having par value of Rs. 5 per share. Each holder of
equity shares is entitled to one vote per share. The Company declares and pays
dividend in Indian rupees. The dividend proposed by the Board of Directors is
subject to approval of the shareholders in the ensuing Annual General Meeting.
During the year
ended March 31, 2013, the Board of Directors has proposed dividend of Rs. 1 per
share of Rs. 5 each (March 31, 2012 Re. 1.00).
c)
Details of shareholders (as per the register of
shareholders) holding more than 5% shares in the Company
|
Equity shares of Rs. 5 each fully paid up |
No.
of Shares |
%
of Shares |
|
Bharti Telecom Limited |
1737558892 |
45.75% |
|
Pastel Limited |
591319300 |
15.57% |
|
Indian Continent Investment Limited |
26577860986 |
7.00% |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
18988.000 |
18988.000 |
18988.000 |
|
(b) Reserves & Surplus |
522474.000 |
475308.000 |
422128.000 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending
allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
541462.000 |
494296.000 |
441116.000 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
98408.000 |
82338.000 |
74687.000 |
|
(b) Deferred tax liabilities (Net) |
11503.000 |
8367.000 |
5276.000 |
|
(c) Other long term
liabilities |
31708.000 |
25184.000 |
25132.000 |
|
(d) long-term
provisions |
1494.000 |
1405.000 |
1002.000 |
|
Total Non-current
Liabilities (3) |
143113.000 |
117294.000 |
106097.000 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
31390.000 |
58956.000 |
27644.000 |
|
(b) Trade
payables |
51372.000 |
45121.000 |
49598.000 |
|
(c) Other
current liabilities |
106034.000 |
82000.000 |
86097.000 |
|
(d) Short-term
provisions |
5461.000 |
5570.000 |
5274.000 |
|
Total Current
Liabilities (4) |
194257.000 |
191647.000 |
168613.000 |
|
|
|
|
|
|
TOTAL |
878832.000 |
803237.000 |
715826.000 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
264362.000 |
263782.000 |
274776.000 |
|
(ii)
Intangible Assets |
167464.000 |
140626.000 |
132231.000 |
|
(iii)
Capital work-in-progress |
10308.000 |
9230.000 |
14320.000 |
|
(iv)
Intangible assets under development |
0.000 |
35435.000 |
50472.000 |
|
(b) Non-current Investments |
271191.000 |
118041.000 |
117051.000 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
89358.000 |
84817.000 |
70812.000 |
|
(e) Other
Non-current assets |
14111.000 |
10924.000 |
3059.000 |
|
Total Non-Current
Assets |
816794.000 |
662855.000 |
662721.000 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
10800.000 |
5337.000 |
1079.000 |
|
(b)
Inventories |
21.000 |
321.000 |
344.000 |
|
(c) Trade
receivables |
22468.000 |
21345.000 |
14619.000 |
|
(d) Cash
and cash equivalents |
3627.000 |
4812.000 |
1332.000 |
|
(e)
Short-term loans and advances |
14133.000 |
98047.000 |
25464.000 |
|
(f) Other
current assets |
10989.000 |
10520.000 |
10267.000 |
|
Total
Current Assets |
62038.000 |
140382.000 |
53105.000 |
|
|
|
|
|
|
TOTAL |
878832.000 |
803237.000 |
715826.000 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
453509.000 |
416038.000 |
380177.000 |
|
|
|
Other Income |
14631.000 |
6247.000 |
3212.000 |
|
|
|
TOTAL |
468140.000 |
422285.000 |
383389.000 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Access charges |
74212.000 |
58086.000 |
49872.000 |
|
|
|
License fee and spectrum charges
(revenue share) |
48815.000 |
46942.000 |
72903.000 |
|
|
|
Cost of goods sold |
19.000 |
183.000 |
161.000 |
|
|
|
Employee benefits expenses |
15113.000 |
13915.000 |
14512.000 |
|
|
|
Power and fuel |
35699.000 |
29727.000 |
25233.000 |
|
|
|
Rent |
52225.000 |
47714.000 |
43337.000 |
|
|
|
Other expenses |
92424.000 |
82702.000 |
70466.000 |
|
|
|
TOTAL |
318507.000 |
279269.000 |
276484.000 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
149633.000 |
143016.000 |
136905.000 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
16523.000 |
13962.000 |
3241.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
133110.000 |
129054.000 |
133664.000 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
68267.000 |
59160.000 |
46116.000 |
|
|
|
|
|
|
|
|
|
Less |
CHARITY AND DONATION (RS. NIL MN (2011-12 RS. 20
MN) PAID TO SATYA ELECTORAL TRUST FOR POLITICAL PURPOSE) |
295.000 |
332.000 |
290.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
64548.000 |
69562.000 |
87258.000 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
13585.000 |
12262.000 |
10089.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
|
50963.000 |
57300.000 |
77169.000 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Service Revenue |
23737.000 |
20048.000 |
17935.000 |
|
|
|
Management Charges |
87.000 |
74.000 |
221.000 |
|
|
TOTAL EARNINGS |
23824.000 |
20122.000 |
18156.000 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
25516.000 |
17628.000 |
19105.000 |
|
|
TOTAL IMPORTS |
25516.000 |
17628.000 |
19105.000 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
13.42 |
15.09 |
20.32 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
10.89
|
13.57
|
20.13 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
14.23
|
16.72
|
22.95 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
39.00
|
29.46
|
86.72 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.12
|
0.14
|
0.20 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.24
|
0.29
|
0.23 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.32
|
0.73
|
0.31 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
----------- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
---------- |
|
22] |
Litigations that the firm
/ promoter involved in |
Yes |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
---------- |
|
26] |
Buyer visit details |
---------- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director,
if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
LITIGATION
DETAILS:
IN THE HIGH COURT OF DELHI AT NEW DELHI
CO.PET. 396/2013
CORE INTEGRA CONSULTING SERVICES PRIVATE
LIMITED
..... Petitioner
Through Mr Anshuman Srivastava, Adv.
versus
BHARTI AIRTEL LIMITED
..... Respondent
Through None
CORAM:
HON'BLE MR. JUSTICE R.V.EASWAR
O R D E R
05.08.2013
This is a petition filed under section 433(e) of the Companies Act
for winding up the respondent company.
Issue notice to the Respondent through all
modes including
registered speed post and approved courier,
returnable on 7th November,
2013; Dasti as well.
Co.Appl.1302/2013
This is an application for appointment of
provisional liquidator.
The same is not pressed for the time being.
R.V.EASWAR, J
AUGUST 05, 2013
UNSECURED LOANS:
|
Particulars |
31.03.2013 Rs. In Millions |
31.03.2012 Rs. In Millions |
|
Long Term Borrowings |
|
|
|
Term Loans |
|
|
|
From Banks |
71059.000 |
51275.000 |
|
From Others |
39714.000 |
42754.000 |
|
Less: Current
maturities (payable within 1 year) |
|
|
|
From Banks |
(8294.000) |
(5642.000) |
|
From Others |
(4091.000) |
(6078.000) |
|
Short Term Borrowings |
|
|
|
(Unsecured unless stated otherwise) |
|
|
|
Loans |
|
|
|
From banks |
8395.000 |
43383.000 |
|
From others |
0.000 |
2000.000 |
|
Loans repayable on demand |
|
|
|
Cash Credit |
5.000 |
314.000 |
|
Loans from related parties |
22990.000 |
13259.000 |
|
Total |
129778.000 |
141265.000 |
Note:
Long Term
Borrowing
The borrowings of
Rs. 110793.000 Millions outstanding as of March 31, 2013 is repayable in total
315 half yearly installments (borrowings of Rs. 94058 Millions outstanding as
of March 31, 2012 is repayable in total 388 half yearly installments).
Short Term Borrowings
- Details on analysis of borrowings i.e.
interest rate and currency of borrowings
(Rs.
In Millions)
|
Particulars |
As on 31.03.2013 |
As on 31.03.2012 |
||
|
|
Rate of Interest (Weighted average) |
Amount outstanding |
Rate of Interest (Weighted average) |
Amount outstanding |
|
INR |
10.30% |
3500.000 |
10.72% |
28400.000 |
|
USD |
3.28% |
4895.000 |
3.64% |
16983.000 |
|
|
13.58% |
8395.000 |
14.36% |
45383.000 |
- The borrowings of Rs. 8395.000 Millions outstanding as of
March 31, 2013 is repayable in 4 bullet installments (borrowings of Rs.
45383.000 Millions outstanding as of March 31, 2012 is repayable in 12
bullet installments).
NOTE: NO CHARGES EXIST FOR COMPANY
CORPORATE
INFORMATION
The Company
incorporated in India on July 7, 1995, is a company promoted by a company
incorporated under the laws of India. The Company’s shares are publicly traded
on the National Stock Exchange (‘NSE’) and the Bombay Stock Exchange (‘BSE’),
India. The Registered office of the Company is situated at Bharti Crescent, 1,
Nelson Mandela Road, Vasant Kunj, Phase – II, New Delhi – 110070.
The Company is a
leading telecommunication service provider in India providing telecommunication
systems and services.
COMPANY OVERVIEW
Subject continued to
be among the top four mobile service providers globally with presence in 20
countries, including India, Sri Lanka, Bangladesh and 17 countries in the
African continent. The Company’s diversified service range includes mobile, voice and data
solutions using 2G, 3G and 4G technologies. Its service portfolio also
comprises an integrated suite of telecom solutions to its customers, besides
providing long-distance connectivity in India, Africa and rest of the world.
The Company also offers Digital TV and IPTV services in India.
All these services
are rendered under a unified brand ‘airtel’, either directly or through
subsidiary companies. The Company also deploys, owns and manages passive
infrastructure pertaining to telecom operations through its subsidiary, Bharti
Infratel Limited, which owns 42% of Indus Towers Limited. Together, Bharti
Infratel and Indus Towers are the largest passive infrastructure service
providers in India.
OUTLOOK
Subject launched
India’s first GSM service in 1995. That’s how the Company’s journey began. The
Company has just turned 18 in 2013 and interestingly, its target audience is
the aspirational 18-year-old, who has the potential to shape the future. The
Company wants to partner the aspiration of the young adult to emerge as a positive
global force, especially in South Asia and Africa. It is a young Company,
serving the younger part of the world.
The world’s
economic centre of gravity is fast shifting towards Asia and Africa, continents
of energy, optimism and potential for growth. The Company is contributing to
this energy and optimism with growing enthusiasm. The 20 countries where the
Company operates have more than 1.8 Bn people, representing over ¼th of the
global population. India, home to 1.22 Bn people, is the world’s second most
populous nation. It is projected to surpass China by 2025. Bangladesh, with a
population density of 1,034 (people per sq km), has the world’s third largest
population density. Besides, population growth (2.5% annually) in Sub-Saharan
Africa is one of the world’s highest. Home to 170 Millions people – with a
median age of 19.2 years, according to UN studies – Nigeria will have almost
400 Millions people by 2050, making it the world’s fourth populous country.
With its significant presence in these geographies, Bharti Airtel is well
poised to capitalise on these demographic trends.
With India’s
median age at around 26 years, and that of Sub-Saharan Africa at less than 20
years, the opportunities for doing and growing business in the youth segment
will be attractive for many years to come. These are already evident in the
continuing strong growth in mobile internet. Coupled with development of the
smartphone ecosystem and affordable data-enabled handsets, the telecom sector
is poised for the next round of growth.
Bharti Airtel has
made significant investments in growth drivers, such as 3G and 4G networks in
India, presence in South Asia and a large network across Africa. The airtel
brand evokes youthfulness, dynamism and integrity. Airtel money services are now offered in 18
countries, and these are helping to increase customer loyalty. The Company’s
unique business model of elasticity and affordability is driving a virtuous
cycle of profitable growth.
FINACIAL RESUILT
FOR THE QUARTER ENDED JUNE 30, 2013
Audited Financial
result for the quarter ended June 30, 2013 as per Indian GAAP (as stand alone
entity)
(Rs. In Millions)
|
Particulars |
Quarter Ended 30.06.2013 |
|
|
Un Audited |
|
PART-I |
|
|
Income from
Operations |
122244.000 |
|
Expenses |
|
|
Access charges |
19026.000 |
|
Employee benefit
expenses |
4294.000 |
|
Cost of goods
sold |
0.000 |
|
Power and fuel |
10426.000 |
|
Rent |
14010.000 |
|
License
fee and spectrum charges (revenue share) |
13211.000 |
|
Depreciation
and amortization charges |
18147.000 |
|
Other
accounting expenses |
25354.000 |
|
Total
Expenses |
104468.000 |
|
Profit/
(Loss) from operations before other income, finance costs and exceptional
items (1-2 ) |
17776.000 |
|
Other
Income |
830.000 |
|
Profit/
(Loss) from Ordinary activities before finance costs and exceptional items
(3+4) |
18606.000 |
|
Finance
Costs |
4597.000 |
|
Profit/
(Loss) from Ordinary activities after finance costs but before exceptional
items (5-6) |
14009.000 |
|
Exceptional
Items |
2299.000 |
|
Profit/
(Loss) from Ordinary Activities before Tax (7+8) |
11710.000 |
|
Tax
Expenses |
2122.000 |
|
Net
Profit/ (Loss) from Ordinary Activities after Tax (9-10) |
9588.000 |
|
Extraordinary
Item (Net of Tax Expenses) |
0.000 |
|
Net Profit/
(Loss) for the period (11+12) |
9588.000 |
|
Paid-up
Equity Share Capital ( Face Value Rs.10/- each) |
19988.000 |
|
Reserves
excluding Revaluation Reserves |
598931.000 |
|
Earnings
per Share (before extraordinary items) (of Face Value Rs.5/- each) |
|
|
Basic |
2.505 |
|
Diluted |
2.505 |
|
Basic
and diluted EPS before after Extraordinary items |
|
|
Basic |
2.505 |
|
Diluted |
2.505 |
|
Particulars
of Shareholding |
Quarter Ended 30.06.2013 |
|
|
Un Audited |
|
Public Shareholding |
|
|
* Number
of shares |
1389895924 |
|
Percentage
of share-holding (as a % of the total) |
34.77% |
|
Promoters and promoter group
Shareholding |
|
|
Pledged/Encumbered |
|
|
-
Number of shares |
Nil |
|
- Percentage
of Shares (as a % of share holding of promoter and promoter group) |
Nil |
|
-
Percentage of Shares (as a % of total share capital of the company) |
Nil |
|
Non-encumbered |
|
|
-
Number of shares |
2607504178 |
|
- Percentage
of Shares (as a % of share holding of promoter and promoter group) |
100% |
|
-
Percentage of Shares (as a % of total share capital of the company) |
65.23% |
|
Particulars |
Quarter
Ended |
|
|
30.06.2013 |
|
Status of investors complaints as on September 30, 2012 is as follows |
|
|
Complaints Pending as on July 1, 2012 |
Nil |
|
Complaints received during the quarter |
5 |
|
Complaints resolved during the quarter |
5 |
|
Complaints pending as on September 30,2012 |
Nil |
Segment Reporting
– prepared as per Indian GAAP (as standalone entity)
|
Particulars
of Shareholding |
30.09.2012 |
|
|
Un Audited |
|
1. Segment Revenue |
|
|
Net sales/income
from each segment |
|
|
a) Mobile Services India |
107895.000 |
|
b) Telemedia Services |
9012.000 |
|
c) Airtel Business |
13172.000 |
|
d)
Unallocated |
0.000 |
|
Total |
130079.000 |
|
Less:
Inter Segment Eliminations |
7835.000 |
|
Net Sales/ Income |
122244.000 |
|
2. Segment Results |
|
|
Profit/(Loss)
before tax and net Finance Charges from each segment |
|
|
a) Mobile Services India |
16469.000 |
|
b) Telemedia Services |
1508.000 |
|
c) Airtel Business |
1455.000 |
|
d)
Unallocated# |
(1404.000) |
|
Total |
18028.000 |
|
Less:
Inter Segment Eliminations |
0.000 |
|
Total profit/loss)
before tax and Net Finance |
18028.000 |
|
Less : |
|
|
Net
Finance Charges (including exchange fluctuation) |
1019.000 |
|
Exceptional Items |
2299.000 |
|
Total Profit Before Tax |
11710.000 |
|
3. Capital Employed |
|
|
(Segment assets - Segment
liabilities)* |
|
|
a) Mobile Services India |
259369.000 |
|
b) Telemedia Services |
24261.000 |
|
c) Airtel Business |
13823.000 |
|
d)
Unallocated** |
296664.000 |
|
Total |
594117.000 |
Note:
*Excludes inter
segment assets and liabilities.
**Includes
borrowing for 3G and BWE licenses of Rs. 45700.000 Millions, Rs. 54750.000 Millions,
as at June 30, 2013 and June 31, 2013 and June 30, 2012 respectively.
#Includes foreign
exchange fluctuations in respect of loans given to subsidiaries
- Notes to the consolidated financial statements form part of the notes to the standalone financial results.
- Exceptional items during the quarter result in a loss of Rs. 2299 Millions, comprising of a net charge resulting from reassements of the useful residual lives to certain categories of network assets of the company due to technological developments. Tax benefit on the above amounted to Rs. 597.000 Millions.
- Reserves and Surplus as at June 30, 2013 include Rs. 2729.000 Millions for the company, towards employee stock option outstanding account (net of the related deferred cost) of the company.
- On January 8, 2013, the department of Telecommunication (DoT) issued a demand on the company for Rs. 51353.000 Millions towards levy of one time spectrum charge. Based on a petition filed by the company, the Hon’ble High Court of Bombay through its order dated January 28, 2013, has directed the Dot to respond and not to take any coervice action until the next date of hearing. The company, based on independent legal opinions, has given effect for the one time spectrum charge in these financial results.
FIXED ASSETS:
- Leasehold
Land
- Building
- Building ns
Leased Land
- Leasehold
Improvement
- Plant and
Machinery
- Computer
- Office
Equipment
- Furniture and
Fixture
- Vehicles
Media
Release
July 31,
2013
Consolidated Revenues up 9.2% Y-o-Y
Consolidated EBITDA up 19.3% Y-o-Y
India Mobile Data:
Traffic and Revenues grow 117.0% and 91.5% respectively Y-o-Y
Bharti Airtel announces
consolidated IFRS results for the first quarter ended June 30, 2013
Highlights for the first quarter ended June 30,
2013
- Consolidated total revenues up by 9.2 % Y-o-Y.
- Consolidated EBITDA up by 19.3% Y-o-Y.
- India revenues up 5.7% Q-o-Q; 11.6% Y-o-Y.
- India voice revenue per minute up 1.4p Q-o-Q; 0.7p Y-o-Y.
- India data traffic up 13.9% Q-o-Q; 117.0% Y-o-Y.
- India EBITDA up 9.0% Q-o-Q; 22.1% Y-o-Y
- India EBITDA margin expansion 1.1% Q-o-Q; 3.0% Y-o-Y.
- Data picking well in Africa; 24.2% customers already on data.
New
Delhi, India, July 31, 2013:
Bharti Airtel Limited ("Bharti
Airtel" or "the Company") today announced its audited
consolidated IFRS results for the quarter ended June 30, 2013.
Effective
April 1, 2013, accounting standard "IFRS 11 on Joint Arrangements"
became mandatory whereby accounting for investments in joint ventures changed
from proportionate consolidation method (line by line consolidation) to equity
method. Accordingly the company has adopted IFRS 11 and restated previous
periods for comparison with current period.
Consolidated revenues at Rs. 2026.400 Millions grew by 9.2%, over the
corresponding period last year, led by 10.9% growth in Mobile India, 34.0% in
Digital TV, 17.9% in 'airtel business' (B2B) and 37.1% in South Asia. Mobile
Data continues its growth trajectory with revenue up Y-o-Y by 91.5% in India
and 65.8% in Africa.
Mobile revenues in India grew on the back of
ARPU moving to Rs. 200 in Q1'14, up by
Rs. 16 over corresponding period last year. The voice rate increase (up from
35.68p last year to 36.39p) coupled with higher usage per customer (up from 433
minutes last year to 455) has enabled this improvement in ARPU.
Reported International revenues comprising of
Africa and South Asia operations grew by 4.6% Y-o-Y in INR terms. Mobile
termination rates were revised downward in several key countries in Africa,
including Nigeria. Net Revenue in Africa, after netting off inter-connect costs
and cost of goods sold, has grown by 8.9% Y-o-Y in INR terms.
Consolidated EBITDA at Rs. 654.500 Millions
reports a growth of 19.3% Y-o-Y with margin expanding to 32.3% from 29.6% in
corresponding period last year. India EBITDA margin improved from 31.9% last
year to 34.9%, while International margins improved from 24.0% to 25.4%.
Derivative and exchange fluctuation losses
during the quarter were Rs.5340.000 crore, mainly caused by the Rupee
depreciation, compared to gains of Rs. 1600.000 crore in the same period last year, Consolidated tax charges
at Rs. 9680.000 crore have
increased from Rs. 4540.000 crore last year, mainly increasing in Africa. Consequently,
the consolidated net income stands at Rs.
689.000 crore, as against Rs. 7620.000 crore in the corresponding quarter
last year. Consolidated Operating Free Cash Flows for the quarter were at Rs.
424.900 crore, a Y-o-Y growth of 100.8%
Consequent to the additional equity infusion
of Rs. 679.600 crore by Qatar Foundation Endowment and after considering the
full debt in the Qualcomm subsidiaries, the consolidated net debt has decreased
by $908 Millions during the quarter to close at $9,779 Millions. The Net Debt
to EBITDA ratio (USD terms) now stands at 2.21 as compared to 2.50 at the end
of the previous quarter.
In a statement, Mr. Sunil Bharti Mittal, Chairman,
Bharti Airtel Limited, said:
"Our results for the quarter reflect the
overall stability of our operations, and demonstrate the potential for growth,
particularly seeing robust data growth across all geographies. Results for
Airtel India reflect rationality returning to the sector which needs to be
complemented by a more enabling regulatory environment for a deeper penetration
of telecom and broadband services."
Summary of
the Consolidated Statement of Income - represents
consolidated Statement of Income as per International Financial Reporting
Standards (IFRS)
(Rs. In Millions)
|
Particulars |
Quarter Ended |
Y-o-Y Growth |
|
|
|
Jun 2013 |
Jun 2012 |
|
|
Total revenues |
2026.400 |
1856.000 |
9.2% |
|
EBITDA |
654.500 |
548.600 |
19.3% |
|
EBITDA/ Total revenues |
32.3% |
29.6% |
|
|
Profit before tax |
161.300 |
122.900 |
31.2% |
|
Net Income |
68.900 |
76.200 |
(9.6%) |
|
Operating free cash flow |
424.900 |
211.700 |
100.8% |
Customer
Base
(Figures in nos, except ratios)
|
Parameters |
Unit |
Jun 2013 |
Mar 2013 |
Q-o-Q Growth |
Jun 2012 |
Y-o-Y Growth |
|
Mobile
Services |
000's |
263,176 |
259,844 |
1.3% |
250,038 |
5.3% |
|
India |
000's |
190,948 |
188,220 |
1.4% |
187,302 |
1.9% |
|
Africa |
000's |
64,203 |
63,718 |
0.8% |
55,855 |
14.9% |
|
South Asia |
000's |
8,025 |
7,906 |
1.5% |
6,881 |
16.6% |
|
Telemedia Services |
000's |
3,289 |
3,283 |
0.2% |
3,272 |
0.5% |
|
Digital TV Services |
000's |
8,452 |
8,100 |
4.3% |
7,400 |
14.2% |
|
Total |
000's |
274,917 |
271,227 |
1.4% |
260,710 |
5.4% |
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 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. 84.67 |
|
|
1 |
Rs. 100.70 |
|
Euro |
1 |
Rs. 63.79 |
INFORMATION DETAILS
|
Report Prepared
by : |
VNT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--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 |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
68 |
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.