Bharti Airtel, 4th February, 2013

7/29/2019 Bharti Airtel, 4th February, 2013

1/14

Please refer to important disclosures at the end of this report 1

EBITDA 6,184 6,351 (2.6) 5,958 3.8

EBITDA margin (%) 30.5 31.3 (78)bp 32.2 (172)bp

Source: Company, Angel Research

For 3QFY2013, Bharti Airtel (Bharti)s revenue as well as operating margins came

in-line with our estimates, however its bottom-line disappointed because of higher

interest charges, forex loss and higher tax. The company is now hopeful regarding

its domestic operations as mobile operators have increased tariffs and cut freebies

after a bruising three-year price war. Africa operations are expected to continueto weigh upon the companys performance. The companys board has elevated

its international operations head Manoj Kohli to the post of managing director.

For 3QFY2013, Bhartis consolidated revenue stood at

`20,254cr, almost flat qoq. Earlier in 2QFY2013, Bharti had ~`600cr of gain due

to a favorable ruling by TDSAT. So adjusting to that, revenues would have grown

by 3% qoq, largely in line with expectations. The consolidated EBITDA margin of

Bharti declined by 78bp qoq to 30.5%. PAT came in at `284cr, down 61% qoq, hit

by higher interest costs, forex fluctuations (`216cr forex loss) and higher tax

expense with tax rate coming in at ~70%. The tax rate increased as one deferred

tax asset in Africa had to be de-recognized.

: On the domestic business front, despite the festival season,

telecom operators did not resort to discounts and promotions to drive subscriber

additions. Recently, telecom operators have reduced discounts and promotional

vouchers, which would lead to improvement in realized tariffs and in turn average

revenue per minute (ARPM). The company has been consistently adding above

2.0mn subscribers plus per quarter in its Africa business. Traffic growth during the

quarter was driven by implementing various minutes growth schemes across the

continent. Going ahead elevated costs and pricing pressure in Africa might weigh

upon Bhartis performance. While operationally 3QFY2013 performance was in

line on the revenue and operating front, regulatory issues persist. Apart from this,

higher debt, interest costs and forex risks pose a risk to earnings. We expect Bhartito post revenue CAGR of 10.4% over FY2012-14E.

Key financials (Consolidated, IFRS)

% chg 13.2 42.1 20.2 12.7 8.2

% chg 5.7 (33.7) (29.4) (43.0) 62.6

EBITDA margin (%) 40.3 33.7 33.2 30.5 30.5

P/E (x) 13.8 20.8 29.5 51.7 31.8

P/BV (x) 3.0 2.6 2.5 2.4 2.2RoE (%) 21.6 12.4 8.4 4.6 7.0

RoCE (%) 17.6 8.2 8.1 6.9 7.5

EV/Sales (x) 3.1 3.1 2.7 2.4 2.2

EV/EBITDA (x) 7.6 9.3 8.0 7.9 7.1Source: Company, Angel Research

CMP `331

Target Price -

Investment Period -

Stock Info

Sector

Net debt (`cr) 642,825

Bloomberg Code

Shareholding Pattern (%)

Promoters 68.5

MF / Banks / Indian Fls 8.2

FII / NRIs / OCBs 17.3Indian Public / Others 6.0

Abs. (%) 3m 1yr 3yr

Sensex 6.6 14.3 20.9

Bharti Airtel 12.5 (8.5) 6.4

5

19,781

5,999

BRTI.BO

BHARTI.IN

125,511

0.9

401/238

488,612

Telecom

Avg. Daily Volume

Market Cap (`cr)

Beta

52 Week High / Low

Face Value (`)

BSE Sensex

Nifty

Reuters Code

022-39357800 Ext: 6819

[email protected]

Performance highlights

3QFY2013 Result Update | Telecom

February 1, 2013


2/14

Bharti Airtel | 3QFY2013 Result Update

February 1, 2013 2

Exhibit 1:3QFY2013 Financial performance (Standalone, Indian GAAP)

Access charges 1,949 1,990 (2.1) 1,499 30.0 5,589 4,272 30.8License fees and spectrum charges 1,204 1,221 (1.4) 1,192 1.0 3,647 3,472 5.0

Employee costs 386 356 8.2 306 25.9 1,106 1,055 4.8

Other expenses 4,585 4,482 2.3 4,153 10.4 13,514 11,914 13.4

Total operating expenses 8,124 8,050 0.9 7,150 13.6 23,856 20,712 15.2

as % to sales 71.9 69.9 68.1 70.6 67.1

Depreciation and amortization 1,738 1,680 3.5 1,529 13.7 5,070 4,381 15.7

EBIT 1,438 1,794 (19.8) 1,823 (21.1) 4,877 5,754 (15.2)

Interest cost 490 336 45.8 396 23.6 1,372 1,086 26.3

Other income 45 796 257 1,407 438

PBT 993 2,253 (55.9) 1,683 (41.0) 4,912 5,106 (3.8)

Tax 243 462 (47.5) 267 (9.1) 900 950 (5.3)

EBITDA margin 28.1 30.1 (204)bp 31.9 (381)bp 29.4 32.9 (343)bp

EBIT margin 12.7 15.6 (284)bp 17.4 (463)bp 14.4 18.7 (423)bp

PAT margin 6.6 15.5 (891)bp 13.5 (684)bp 11.9 13.5 (160)bp


For 3QFY2013, Bharti reported a flat revenue growth with

revenues coming in at `20,254cr. During 2QFY2013, Bharti had ~`600cr of gain

due to a favorable ruling by TDSAT. So adjusting to that, revenues would havegrown by 3% qoq, largely in line with expectations.

Exhibit 2:Revenue break-up (Business segment wise)

Mobile services India & South Asia 10,936 11,117 (1.6) 10,176 7.5

Mobile services Africa 5,972 5,854 2.0 5,358 11.5

Telemedia services 957 953 0.4 913 4.8

Enterprise services 1,422 1,393 2.0 1,188 19.7

Passive infrastructure services 2,635 2,557 3.1 2,439 8.0

Others 520 498 4.5 399 30.3

Eliminations 2,189 2,090 4.8 1,997 9.6



3/14


February 1, 2013 3

The revenue of the mobile business in

India and South Asia declined by 1.6% qoq to `10,936cr, because of high base

effect of one-time gain during 2QFY2013. The Indian mobility business reported

decent KPIs with 4.4% qoq growth in minutes of use (MOU) to 435min. Mobiletraffic grew by 3.0% qoq to 240bn min. The ARPM remained flat qoq at

`0.43/min. Consequently, the average revenue per user (ARPU) grew by 4.3% qoq

to `185/month. Churn level came back to comfortable position after seven

quarters and stood at 5.9%. The subscriber base fell to 181.9mn from 185.9mn as

the company has been pushing out inactive subscribers from its system, keeping in

notice the regulatory requirements. VAS as a percentage of mobility revenues

improved to 17.3% from 16.8% during 2QFY2013. The regulatory changes in

value added services (VAS) segment did not have any significant impact in

3QFY2013 as Bharti has been taking cuts in VAS revenues since the last couple of

quarters. The growth in non-voice revenues was led by growth in data revenue,

which grew from 5.2% to 5.7% of total mobile revenues. Data ARPU increased to`47 from `43 in 2QFY2013. Data customer base of the company increased by

2.2% qoq to 41.5mn. Data usage per subscriber increased to 161MB from 133MB

in 2QFY2013. The companys data revenue has been growing at a CQGR of

12.3% over the last three quarters, which is an encouraging sign.

Exhibit 3:Trend in MOU (qoq)


Exhibit 4:Trend in VAS share (qoq)


Exhibit 5:Trend in ARPM (qoq)


Exhibit 6:Trend in ARPU (qoq)


445

423

419

431

433

417

435

(0.8)

(4.9)

(1.0)

2.8

0.4

(3.8)

4.4

(6)

(4)

(2)

0

2

4

6

400

410

420

430

440

450

1QFY12 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13

(%)

(min)

MoU qoq growth

15.6

16.115.8

16.216.3

16.8

17.3

14

15

16

17

18


(%)

VAS share

0.4

3

0.4

3

0.4

5

0.4

4

0.4

3

0.4

3

0.4

3

(0.8)

0.9

3.2

(1.7)

(2.6)

(0.2)

(0.1)

(3)

(2)

(1)

0

1

2

3

4

0.30

0.35

0.40

0.45

0.50


(%)

(`/min)

ARPM qoq growth

190

183

187

189

185

177

185

(1.8)

(3.8)

2.21.1

(2.2)

(3.9)

4.3

(8)

(4)

0

4

8

150

160

170

180

190

200

1QFY12

2QFY12

3QFY12

4QFY12

1QFY13

2QFY13

3QFY13

(%)

(`/month)

ARPU qoq growth


4/14


February 1, 2013 4

: The revenue of the telemedia business increased by 0.4% qoq

to `957cr, led by an improvement in APRU to `973/month from `971/month in

2QFY2013. Bhartis subscriber base in this business remained almost stable qoq.

EBITDA margin on this business grew by 115bp qoq to 43.5%.

Exhibit 7:Telemedia Subscriber base and ARPU trend


: The revenues in the passive infrastructure services

segment grew by 3.1% to `2,635cr. Bharti Infratel has a portfolio of ~34,670

towers with a tenancy ratio of 1.82x and Indus Towers has a portfolio of

~111,240 towers (110,561 in 2QFY2013) with a tenancy ratio of 1.99x. EBITDA

grew by 1.9% qoq to `976cr with EBITDA margin declining by 41bp qoq to 37.0%.

Exhibit 8:Trend in Passive Infrastructure Business (qoq)


India & South Asia capex during the quarter declined to `1,515cr vs `2,896cr in

2QFY2301. The company rolled out 2182 3G sites as compared to 2321 sites

rolled out in the last quarter.

3,3

22

3,3

28

3,3

17

3,2

70

3,2

72

3,2

75

3,2

78

952 955

916 933

962

971

973

800

850

900

950

1000

2,500

2,700

2,900

3,100

3,300

3,500


(`)

(in000's)

Telemedia subs cribers (in 000's) ARPU

1.77 1.791.81 1.82 1.82 1.81 1.82

1.87 1.891.91 1.94

1.96 1.98 1.99

1.0

1.2

1.4

1.6

1.8

2.0

2.2

0

300

600

900

1,200


Tenancy(x)

N

o.oftowers(in00's)

Bharti Infratel (BTIL) Indus BTIL tenancy Indus tenancy


5/14


February 1, 2013 5

Exhibit 9:3QFY2013 Financial performance (Consolidated, IFRS)

Operating expenditure 14,070 13,932 1.0 12,518 12.4 41,515 35,256 17.8

Depreciation & amortization 3,901 3,856 1.2 3,585 8.8 11,514 9,900 16.3

EBIT 2,283 2,495 (8.5) 2,374 (3.8) 6,870 7,580 (9.4)

Interest charges 1,332 1,022 30.3 788 69.1 3,175 2,761 15.0

Non operating expenditure - - - - - - - -

Other income - - - - -

PBT 951 1,473 (35.4) 1,586 (40.0) 3,695 4,818 (23.3)

Income tax 668 771 (13.5) 559 19.5 1,927 1,563 23.3

PAT 284 701 (59.5) 1,028 (72.4) 1,768 3,256 (45.7)

Share in earnings of associate - - (6) 8 -

Minority Interest 0 (20) (101.5) 11 (97.2) (20) (3) 500.0

EPS (`) 0.7 1.9 (60.7) 2.7 (71.9) 4.7 8.6 (45.3)

EBITDA margin (%) 30.5 31.3 (78)bp 32.2 (172)bp 30.7 33.1 (245)bp

EBIT margin (%) 11.3 12.3 (103)bp 12.8 (157)bp 11.5 14.4 (290)bp

PAT margin (%) 1.4 3.6 (215)bp 5.5 (407)bp 3.0 6.2 (321)bp


Exhibit 10:Actual vs Angel estimates

Net sales 20,254 20,415 (0.8)

EBITDA margin (%) 30.5 31.5 (96)bp

PAT 284 910 (68.8)


For 3QFY2013, Zain Africas revenue stood at `5,972cr,

up 2.0% qoq. In USD terms, the revenue increased by 3.3% qoq to US$1,133mn,

as MOU increased by 4.5% qoq to 144min. The ARPU, however, declined by 2.4%

qoq to US$6.2/month. ARPM declined substantially by 6.7% qoq to 4.3US/min,

as traffic growth was driven on the back of discounted on-net minutes as well as

tariff cut in Nigeria. EBITDA during the quarter remained flat qoq at `1,581cr,primarily due to higher network opex and license fee. EBITDA margin stood at

26.5%, down 70bp qoq. Capex during the quarter stood at `867cr vs `1,159cr in

2QFY2013.

Exhibit 11:Operating metrics for Zain Africa

ARPM (US/min) 4.3 4.6 (6.7) 5.7 (24.3)

MOU (min) 144 138 4.5 125 15.5

ARPU (US$/month) 6.2 6.4 (2.4) 7.1 (12.5)

Subscriber base (mn) 61.7 58.7 5.1 50.9 21.1



6/14


February 1, 2013 6

Margins decline

During the quarter, Bhartis consolidated EBITDA margin declined by 78bp qoq to

30.5% qoq. This was because of higher network costs. Segment-wise, India &

South Asia, and Africa reported 73bp and 70bp margin decline to 30.2% and

26.5%, respectively. The EBITDA margin of other business segments such as

telemedia services and enterprise services grew by 115bp and 75bp qoq to 43.5%

and 16.2%, respectively. While operating performance of India mobile business

was satisfactory, Africa business surprised negatively due to pricing pressure seen

by the company.

Exhibit 12:Segment-wise EBITDA margin trend (qoq)


Exhibit 13:Opex break-up (qoq)


33.7 33.8 34.030.3 31.0 30.3

44.2

38.8

41.040.3

42.443.5

21.5

16.9

14.6

16.5

15.4

16.2

37.5

37.3 38.636.5 37.5

37.0

10

20

30

40

50

2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13

(%)

Mobile services-India & South Asia Telemedia services

Enterprise services Passive infrastructure services

13.9 14.2 13.9 14.3 15.1 15.0

22.7 22.8 22.624.0 23.3 24.9

8.4 8.4 8.6 8.4 8.18.2

5.2 4.7 4.7 4.8 4.95.0

16.2 17.7 16.9 18.3 17.316.2

33.7 32.2 33.3 30.2 31.3 30.5

0

20

40

60

80

100

2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13

(%)

Access charges Network costs License fee Employee cost S,G&A cost EBITDA margin


7/14


February 1, 2013 7

Outlook and valuation

The company's board elevated Bhartis international operations head Manoj Kohli

to the post of managing director and appointed Gopal Vittal, the CEO-designate

for its Indian operations, as joint managing director. Vittal will officially assume

charge of the domestic business after Sanjay Kapoor steps down at the end of this

month.

On the domestic business front, despite the festival season, telecom operators did

not resort to various discounts and promotions to drive subscriber additions.

Recently, telecom operators have reduced discounts and promotional vouchers,

which would lead to improvement in realized tariffs and in turn ARPM. Going

ahead, we are positive on the Indian operations and expect tariff to inch up.

Reduction in channel payouts and pricing improvement would provide margin

cushion going forward. However, many regulatory issues still lack clarity. Bhartis

data revenue has been growing at a CQGR of 12.3% over the last three quarters

which is an encouraging sign. We believe sustained RPM improvement would be

imperative for a turnaround in the India mobile business as mobile traffic growth is

already subdued and data revenue is yet to contribute significantly.

Bharti is on its way to turnaround its Africa business by bringing down its network

operating expenditure by outsourcing various network-related developments but is

taking longer than expected to bring the Africa business back on track.

The company has been consistently adding above 2.0mn subscribers plus per

quarter in its Africa business. Traffic growth during the quarter was driven by

implementing various minutes growth schemes across the continent. Going ahead

elevated costs and pricing pressure in Africa might weigh upon Bhartisperformance.

Overall industry growth in Africa has come down to 8-9% vs 14-15% when the

Management took over Zain in 2010, which led to deviation in the Managements

initial guidance of US$5bn revenue and US$2bn EBITDA. The company has been

consistently gaining revenue market share in Africa. African markets have been

more receptive in terms of data consumption. The leading telecom operator in

Nigeria has reduced the tariffs by 30% in the last couple of quarters, so Bharti had

to further cut its tariffs. Its impact would be visible in the coming quarters also. The

Management indicated that investments in Africa would continue because of a)

brand expansion, b) incorporation of tower company which would requireadditional investment and c) 3G expansion (currently launched in 11 out of 17

countries where Bharti operates). The Management also indicated that in FY2014

focus in Africa would be more on margins rather than revenue market share.

While operationally 3QFY2013 performance was in line on the revenue and

operating front, regulatory issues persist. Apart from this, higher debt, interest costs

and forex risks pose a risk to the earnings. We expect Bharti to post revenue CAGR

of 10.4% over FY2012-14E. In addition, we expect VAS share to inch up due to

surging demand for non-SMS data services; this would further comfort the

companys ARPM. Key downside risks such as 1) uncertainty in regulatory outcome;

2) pricing scenario in Africa operations; and 3) delay in return on investmentsmade in 3G launches, still loom. Emerging regulatory clarity in the sector would

remain positive for the sector in the medium to long term. Bharti being the leader

in the industry may remain the key beneficiary of the same. The stock is currently


8/14


February 1, 2013 8

trading at 7.1x FY2014E EV/EBITDA and 31.8x FY2014E EPS.

Exhibit 14:SOTP valuation

Domestic business (excl. Tower) 15x P/E 279

Zain - Africa operations 7x EV/EBITDA 2

Bharti Infratel - Tower business 20% discount to CMP 65


Exhibit 15:One-year forward EV/EBITDA (x)


Exhibit 16:Change in estimates

Net revenue 80,353 80,521 0.2 86,654 87,160 0.6

EBITDA 24,794 24,589 (0.8) 27,118 26,576 (2.0)

PBT 5,367 4,784 (10.9) 6,792 6,169 (9.2)

Tax 2,138 2,377 11.2 2,309 2,221 (3.8)

PAT 3,249 2,428 (25.3) 4,483 3,948 (11.9)


0

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150,000

225,000

300,000

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EV 17x 14x 11x 8x 5x


9/14


February 1, 2013 9

Exhibit 17:Recommendation summary

Idea Cellular Neutral 112 112 - 2.4 28.7 12.7 10.3 8.4

RCom Neutral 81 81 - 0.4 20.3 (14.8) 4.2 2.2


Company Background

Bharti Airtel is India's leading telecommunication service provider, offering mobile

services in all the 22 circles of the country and having a subscriber base of 181mn.

In 2010, Bharti acquired Zain's telecom business in 15 countries of Africa and is

currently present in 17 African countries (62mn subscribers). The company also

has a presence in Sri Lanka and Bangladesh. Bharti also holds a 42% stake inIndus Towers, a JV between Bharti, Vodafone and Idea Cellular.


10/14


February 1, 2013 10

Profit and Loss account (Consolidated, IFRS)

Roaming and access charges 4,481 7,499 9,869 12,013 13,149

% of net sales 10.7 12.6 13.8 14.9 15.1

Network operating exp. 8,912 12,993 16,180 19,542 21,514

% of net sales 21.3 21.8 22.6 24.3 24.7

License fee 4,088 5,166 6,112 6,617 6,979

% of net sales 9.8 8.7 8.6 8.2 8.0

Other expenses 7,513 13,774 15,602 17,760 18,942

Total expenditure 24,993 39,432 47,762 55,932 60,584

% of net sales 59.7 66.3 66.8 69.5 69.5

% of net sales 40.3 33.7 33.2 30.5 30.5

Dep. and amortization 6,284 10,206 13,368 15,521 16,777

Non operating expenses (18) 111 - - -

Interest charges 18 2,182 3,819 4,284 3,629

Other income, net 70 129 - - -

Profit before tax 10,640 7,666 6,526 4,784 6,169

Provision for tax 1,345 1,778 2,260 2,377 2,221

% of PBT 12.6 23.2 34.6 49.7 36.0

Share in earnings of associate - - (6) - -

Minority interest 187 (148) (1) (20) -

EPS (`) 24.0 15.9 11.2 6.4 10.4


11/14


February 1, 2013 11

Balance sheet (Consolidated, IFRS)

Share capital 1,899 1,899 1,899 1,899 1,899Reserves and surplus 40,295 46,868 48,713 50,696 54,200

Minority interest 2,529 2,856 2,770 2,770 2,770

Secured loans 8,147 53,234 49,715 54,177 51,360

Unsecured loans 2,042 8,437 19,308 20,734 19,251

Other liabilities 5,300 4,665 5,078 1,000 1,000

Gross block 69,725 96,810 112,529 122,529 131,529

Acc. depreciation 21,462 31,668 45,036 60,557 77,334

Net block 48,263 65,142 67,493 62,286 54,643

Goodwill 5,989 63,732 66,089 66,089 66,089

Oth. non-current assets 1,825 1,918 3,543 6,458 10,307

Investments 5,236 622 1,813 3,013 4,013

Inventories 48 214 131 200 200

Sundry debtors 3,571 5,493 6,374 7,942 9,858

Cash and equivalents 2,532 958 2,030 3,191 4,078

Other current asst 2,381 3,921 4,461 5,961 7,961

Less: - current liab. 10,841 28,430 29,450 33,713 36,516

Less:- provisions 41 118 129 153 153

Net deferred tax 1,249 4,506 5,128 10,000 10,000

Miscellaneous exp. - - - - -


12/14


February 1, 2013 12

Cash flow statement (Consolidated, IFRS)

Pretax profit from operations 10,571 7,536 6,526 4,784 6,169

Depreciation 6,284 10,206 13,368 15,521 16,777Expenses (deferred)/written off - - - - -

Pre tax cash from operations 16,854 17,742 19,894 20,305 22,946

Other income/prior period ad 70 129 - - -

Net cash from operations 16,924 17,872 19,894 20,305 22,946

Tax (1,345) (1,778) (2,260) (2,377) (2,221)

(Inc)/Dec in

Current assets 3,501 (3,628) (1,337) (3,138) (3,916)

Current liabilities (4,352) 17,666 1,032 4,286 2,804

Net trade working capital (851) 14,038 (305) 1,149 (1,112)

(Inc)/Dec in fixed assets (13,633) (27,085) (15,719) (10,314) (9,133)

(Inc)/Dec in intangibles (1,953) (57,743) (2,357) - -

(Inc)/Dec in investments (1,431) 4,614 (1,191) (1,200) (1,000)

(Inc)/Dec in net dfr. tax asset (1,249) (3,257) (622) (4,872) -

(Inc)/Dec in minority interest 1,458 328 (87) - -

(Inc)/Dec in oth. non-curr. ast. (801) (94) (1,631) (2,895) (3,849)

Inc/(Dec) in debt (1,690) 51,481 7,352 5,888 (4,300)

Inc/(Dec) in equity/premium 2,944 1,130 (1,970) (0) -

Others 3,484 (635) 413 (4,078) -

Dividends 444 444 444 444 444

Cash at start of the year 1,115 2,532 958 2,030 3,191

Cash at end of the year 2,532 958 2,030 3,191 4,078


13/14


February 1, 2013 13

Key ratios

P/E (on FDEPS) 11.3 17.1 24.2 29.8 21.1P/CEPS 6.7 6.3 5.8 5.5 4.8

P/BVPS 2.4 2.1 2.0 1.9 1.8

Dividend yield 0.4 0.4 0.4 0.4 0.4

EV/Sales 2.5 2.7 2.4 2.0 1.7

EV/EBITDA 6.3 8.1 7.1 6.4 5.3

EV/Total assets 1.7 1.4 1.3 1.3 1.3

EPS 24.0 15.9 11.2 9.1 12.9

Cash EPS 40.6 42.8 46.4 49.6 56.0

Dividend 1.0 1.0 1.0 1.0 1.0

Book value 111.2 128.5 133.3 141.2 152.9

Tax retention ratio (PAT/PBT) 0.9 0.8 0.7 0.6 0.7

Cost of debt (PBT/EBIT) 1.0 0.8 0.6 0.6 0.7

EBIT margin (EBIT/Sales) 0.3 0.2 0.1 0.1 0.1

Asset turnover ratio (Sales/Assets) 0.7 0.5 0.6 0.7 0.8

Leverage ratio (Assets/Equity) 1.4 2.4 2.5 2.2 2.0

Operating ROE 21.6 12.4 8.4 6.4 8.4

RoCE (pre-tax) 17.6 8.2 8.1 8.1 9.9

Angel RoIC 22.8 18.5 18.0 19.0 25.9

RoE 21.6 12.4 8.4 6.4 8.4

Asset turnover (fixed assets) 0.8 0.7 0.6 0.6 0.7

Receivables days 28 34 33 34 34

Payable days 158 263 225 240 240


14/14


Research Team Tel: 022 - 3935 7800 E-mail: [email protected] Website: www.angelbroking.com

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Disclosure of Interest Statement Bharti Airtel

1. Analyst ownership of the stock No

2. Angel and its Group companies ownership of the stock No

3. Angel and its Group companies' Directors ownership of the stock No

4. Broking relationship with company covered No

Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)Reduce (-5% to -15%) Sell (< -15%)

Note: We have not considered any Exposure below `1 lakh for Angel, its Group companies and Directors

Documents

Bharti Airtel, 4th February, 2013