Nov 12, 2012, 02.51 PM | Source: Moneycontrol.com
Motilal Oswal has maintained neutral rating on Bharti Airtel with a target of Rs 265 in its November 8, 2012 research report.
, ICICIdirect.com |
“Bharti Airtel reported broadly in-line 2QFY13, excluding the one-time income from favorable judgment in a case related to interconnect payments, which positively impacted reported revenue/EBITDA/PBT/PAT by INR5.9/2.4/3.5/2.4b respectively. However, the positive impact on PAT was partially offset by an INR0.6b onetime tax expense related to dividend distribution tax for Indus Towers. Consolidated proforma revenue grew 1.7% QoQ to INR196.9b. Consolidated proforma EBITDA grew 5.1% YoY and 4.5% QoQ to INR61.1b led by better performance in Africa and Indian non-mobile segments. Consolidated proforma net profit declined 48% YoY and 29% QoQ to INR5.4b due to higher-than-expected finance cost and tax rate.”
“Proforma India and South Asia revenue grew 0.8% QoQ to INR138.3b. Proforma EBITDA grew 2.6% QoQ to INR44.7b largely driven by 13% QoQ growth in non-mobile, while proforma mobile EBITDA declined 1% QoQ. India mobile traffic declined 2.1% QoQ (vs 4% decline for Idea); mobile RPM remained flat QoQ at 42.7p Africa EBIDTA increased 8.4% QoQ to USD298m on a 3% QoQ revenue growth (20% QoQ traffic growth, 15% RPM decline). EBITDA margin improved 140bp QoQ to 27.2%. Consolidated net debt declined ~2% QoQ to INR668b on INR appreciation but increased 4.5% QoQ in USD terms to USD12.7b due to consolidation of BWA venture acquired from Qualcomm.1HFY13 capex was USD1.4b. Rationalization in channel commissions led to ~150bp improvement in SGA costs for India & SA, lower than the 240bp savings reported by Idea; Bharti has a relatively higher proportion of dongles and post-paid revenues.”
“While Africa business and operating performance surprised positively, India mobile business continues to be impacted by hyper-competition, despite recent corrective measures like rationalization of channel commissions. We believe sustained RPM improvement would be imperative for a turnaround in India business. We upgrade FY13E EBITDA and EPS estimates by 3-5% to incorporate the one-time interconnect income and better-than-expected proforma results; our FY14E estimates remain largely unchanged. We expect 7% EBITDA CAGR over FY12-14E. At CMP of INR271, the stock trades at EV/EBITDA of 6.9x FY13E and 6x FY14E. Maintain neutral with a target price of INR265/sh,” says Motilal Oswal research repot.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
To read the full report click here
JM Financial feels Bharti Airtel may see lower imp
Net Sales are expected to decrease by 4.5 percent
Net Sales are expected to decrease by 2.5 percent
The Telecom Regulatory Authority of India (TRAI) h
In his new role, Badal will lead the Finance teams
ICICI Direct expects USD to find supports at lower