Bharti Airtel Limited is a global telecommunications company that operates in 17 countries across Asia and Africa. The company which offers 3G, 4G and VoLTE mobile services is India’s largest telecom operator.
Bharti Airtel’s market capitalisation, as of March 2018, is around Rs.161,974 crore.
Bharti Airtel Wealth and Recent Performance
Q1 FY 2018-19
The key financial highlights of the company’s consolidated performance, ended 31 June 2018 are as follows:
- The net income stood at Rs.97 crore and recorded a decrease by -73.5% YoY, as against Rs.367 crore in the same period in the previous year.
- The revenues stood at Rs.20,080 crore, down 2.3% Y-o-Y.
- Mobile data recorded an increase of 328% and stood at 2,236 billion MBs in the quarter while the voice traffic was up by 59% Y-o-Y. Airtel’s mobile data traffic surged 355% on a YoY basis.
- Consolidated EBITDA stood at Rs.6,837 crore while the consolidated EBITDA margin was at 34.0%, down 1.6% Y-o-Y.
- The company’s India revenues declined by 7.0% Y-o-Y and stood at Rs.14,930 crore.
- Mobile broadband customers increased by 75.2% and stood at 87.5 million, up from 48.9 million in the corresponding quarter last year.
- The company’s total capex spends for the quarter at Rs 8,217 Cr
The key financial highlights of the company’s consolidated performance for the entire FY 2017-18, ended 31 March 2018 are as follows:
- Net Income was down by 71.1% Y-o-Y and stood at Rs.1,099 crore.
- EBITDA was down by 14.5% YoY, and stood at Rs.30,448 crore while the EBITDA margin was down 0.9% YoY.
- The company’s consolidated revenues were down by 9.8% YoY and stood at Rs.83,688 crore.
- Airtel invested Rs.24K crore in India. The telecom company rolled out more than 107K Mobile Broadband Base station in the country.
- The company’s consolidated net debt recorded an increase to Rs.95,228 crore, up from Rs. 91,714 crore in the previous quarter.
- For Q4, FY 2017-18, the company recorded a decrease in consolidated revenues which stood at Rs.19,634 crore, down 5.4% Y-o-Y.
- The mobile data traffic registered a growth of 505% YoY and stood at 1,616 billion MBs.
- The net income for the quarter was at Rs.83 crore, down from Rs.373 crore in the corresponding quarter in the previous year.
- Airtel’s India revenues recorded a decrease of 7.5% and stood at Rs.14,796 on an underlying basis.
- Consolidated EBITDA decreased by 12.0% YoY and stood at Rs.7,034 crore while EBITDA margin decreased by 0.6% to 35.8% in the quarter as compared to 36.4% in the corresponding quarter last year.
- Bharti Airtel recorded over 39% fall in its consolidated net profit for the Q3 FY18 ended December 31, 2017 to about Rs.306 crore. The company’s overall revenue declined 13% to Rs. 20,319 crore while India revenue declined 11.3% at Rs.15,294 crore.
- Bharti Airtel’s overall customer base was 394.2 million across 16 countries, up 9.2% year over year (YoY), as on December 31, 2017. Mobile data traffic grew at 446% to 1,178.1 billion MBs during the quarter from 215.8 billion MBs in the corresponding quarter in 2016.
- In India, the number of minutes spent on calls on Bharti Airtel’s network grew 49.8% during the quarter.
- The company’s consolidated net debt increased to Rs 91,714 crore from Rs 91,480 crore in the previous quarter. Besides mobile, Airtel performed well in other business in India. The Airtel Digital TV recorded a growth of 10.4% YoY.
- In February 2018, Bharti Airtel entered into a strategic partnership with Indian digital and mobile entertainment Hotstar. Under the partnership, Hotstar’s digital content will be made available to Airtel customers.
- Bharti Airtel launched India’s first Telecom Infra Project (TIP) Community Lab in November 2017. The state-of-the-art facility will create innovative solutions for telecom networks used by TIP project group members.
- In September 2017, the company deployed India’s first Massive Multiple-Input Multiple-Output (MIMO) technology which is a key enabler for 5G networks. The MIMO technology will be first launched in Bangalore and Kolkata followed by other cities.
Bharti Airtel Stock Trends in 2018
- The opening price of the stock on January 1, 2018 was Rs.531 on both NSE and BSE. By the end of the month, the price had fallen to Rs.442. The company’s Q3 net profit was down 84.76% to Rs.64.30 crore.
- In the beginning of February, the stock price was Rs.440 while at the end of month it was down to Rs.430.
- The price of the stock was down by 30 points in the mid of March and stood at Rs.399. By the end of the month the scrip was at Rs.411.
- The scrip fluctuated marginally in the month of April. The opening price of the stock at the end of April was Rs.407.
- In May, the price of the stock declined by around 65 points throughout the month. The scrip ended the month at Rs.376.
- The stock price decreased marginally in the month of June. The opening price of the stock by the end of June was Rs.375.
- At the beginning of July, the price of the stock stood at Rs.381. It declined by around 35 points in the mid of July. The opening price of the stock by the end of July stood at Rs.382.
- In August, the scrip fell by around 20 points throughout the month and stood at Rs.379 by the end.
Bharti Airtel Stock Trends in 2016 and 2017
- In the beginning of January 2016, the price of the stock was Rs.339 on NSE and closed at Rs.353 by the end of March.
- The stock price kept increasing gradually post April and was Rs.363 at the beginning of May and did not change much by the end of June.
- By the end of July, the stock priced crossed Rs.370. Bharti Airtel made voice calling free for postpaid customers in August post which the stock price fell to Rs.308 at the beginning of September.
- The opening price of the stock in the beginning of November was Rs.318 and then fell to Rs.301 at the end of December.
- In the early January 2017, the price of the stock was Rs.303 and increased to Rs.349 by the end of the month. The stock price hit a 52-week high at Rs. 371 in February owing to the Telenor acquisition.
- In the beginning of April, the stock price was Rs.346 and increased to Rs.374 by the end of the May 2017. The price of the stock crossed Rs.400 in July as Bharti Airtel launched Project Next and announced it will invest Rs.2,000 crore for the same.
- The stock price crossed Rs.500 by the end of October and remained in the same range. The closing price of the stock at the end of December 2017 was Rs.531.
Should you invest in Bharti Airtel?
Airtel has been facing a tough competition from Reliance Jio that has resulted in lower profits in the latest quarterly results. However, the telecom company’s stock price has seen a gradual increase from 2016- 2018. Bharti Airtel has been making new investments and continuing to expand in India as well as international markets. It is advised to take help of your financial planner prior to investing in the share.
Headquartered in Delhi, Bharti Airtel is a global telecommunications company that offers 2G, 3G and 4G wireless services, mobile commerce, fixed line services, DSL broadband, IPTV, DTH, enterprise services including national & international long distance services to carriers.
History of the Company
Established in 1995, Bharti Airtel Ltd. was incorporated under the name Bharti Tele-Ventures Ltd. In January 1996, the company received the certificate for commencement of business. British Telecom acquired a 21.05% equity interest in Bharti Cellular in 1997. Bharti Tele-Ventures was changed to Bharti Airtel Ltd. in April 2006. The brand ‘Airtel’ was first established in Delhi and Uttar Pradesh during the year 1995-96 for the company’s mobile services. During the year 2002-03, Airtel launched cellular mobile services in the circle of Mumbai, Maharashtra, Tamil Nadu, Kerala, Madhya Pradesh Uttar Pradesh (West) Haryana and Gujarat.
In 2009, Airtel launched its first international mobile network in Sri Lanka. In 2014, Airtel crossed 300 million mobile customer mark in India.
Management of the Company
Sunil Bharti Mittal - Founder and Executive Chairman
Mr. Sunil Bharti Mittal serves as an Executive Chairman and Group Chief Executive Officer of Bharti Enterprises Limited at Bharti Airtel Limited. He served as the Managing Director of Bharti Airtel limited from October 2001 to February 2013. Mr. Mittal has been an Executive Chairman of Bharti Airtel Limited since February 2013 and served as its Chief Executive Officer of International Operations. He has been conferred with Padma Bhushan, one of the highest civilian award. In addition, he has also received the INSEAD Business Leader for the World Award 2011. Mr, Mittal has a Doctorate in Law from University of Leeds.
Gopal Vittal - Managing Director and CEO
Mr. Gopal Vittal Gopal Vittal has been the associated with Bharti Enterprises Limited since April 1, 2014 as Managing Director and (CEO) Chief Executive Officer of India & South Asia. He served as Director of Marketing and Communications at Bharti Airtel Ltd., from September 28, 2006 to 2008. With an experience of more than 16 years across various aspects of marketing and sales, Mr. Vittal started his career with Unilever India and worked across geographies in India and Asia. An alumnus IIM-Calcutta, Mr. Vittal served as a Member of the Board of Governors at Advertising Standards Council of India.
Bharti Airtel Listing and Indices
The stocks of Bharti Airtel can be bought and sold on the two major stock exchanges in the country - National Stock Exchange and Bombay Stock Exchange. The codes for the same are mentioned below.
BSE - 532454
NSE - BHARTIARTL
ISIN - INE397D01024
Sector - Telecommunications
Bharti Airtel forms a part of different indices and they are mentioned below:
- S&P CNX 500
Bharti Crescent, 1,
Nelson Mandela Marg,
Vasant Kunj II, New Delhi,
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