Bharti Q3 PAT dips, sees hyper competition till Q1 FY11

India's largest telecom player, Bharti Airtel has announced its third quarter results of FY10. It has reported a 3.66% decline in its net profit of Rs 2,236 crore as against Rs 2,321 crore, on quarter-on-quarter basis (QoQ).

Net sales increased 4.66% to Rs 10,304 crore from Rs 9,845.5 crore (QoQ). The telecom player's numbers were slightly above the market estimates; CNBC-TV18 poll saw the company's net profit at Rs 2,120.7 crore and net sales at Rs 9,747.5 crore.

EBIDTA (earning before interest, depreciation, tax and amortisation) margin declined to 40% versus 42% (QoQ).

Bharti group's Chairman and Managing Director Sunil Mittal said the company continued to ensure robust market share despite hyper competition, which, he said was expected to continue for another two quarters, and maintained drive for internal efficiencies via scale economics. "The industry is going through peak of competitive intensity, but will become stable in the second half of 2010. We will see signs of consolidation in 2010," he said, adding that two more players were expected to join the industry in the next five-six months. Also, existing operators were coming back stronger. However, he added that the new players would have to struggle more versus incumbents.

On the recent acquisition, he said that the company had enlarged contagious foot print in South Asia via the Warid stake. Bharti bought 70% stake in the Bangladesh's Warid Telecom.

As per US GAAP, its revenues declined 0.75% to Rs 9,772 crore from Rs 9,845.5 crore and net profit slipped 4.78% to Rs 2,210 crore versus Rs 2,321 crore (QoQ). The company reported forex gain of Rs 148 crore this quarter.

Bharti Q3 Internals

-Telemedia revenue came in at Rs 855 crore and EBIDTA margin at 46.1%.
-Enterprise services revenues stood at Rs 2054.6 crore and margin at 48.8%.
-DTH revenues stood at Rs 141.4 crore and EBIDTA loss was at Rs 247.7 crore.
-Infratel revenues were at Rs 926.7 crore and its margin at 46.1%.

Overall EBIDTA

Q3FY10: 40%
Q2FY10: 42.1%
Q1FY10: 41.8%
Q4FY09: 40.7%

Segment revenues
* Mobile: Rs 7961.8 vs Rs 8099 crore ( Estimate: Rs 7977.9 crore)
* Broadband: Rs 855 cr vs Rs 854.4 crore ( Estimate: Rs 860 crore)
* Enterprise carrier: Rs 2045.6 crore versus Rs 2133.1 crore ( Estimate: Rs 2145 crore)

Segment Margins

                 Mobile    Telemedia   Enterprise
Q3FY10     30.4%        46.1%          48.8%
Q2FY10     31.9%        42.9%          51.7%
Q1FY10     33.03%      40.56            49.06%Q4FY09     31.45%      44.79%         45.87%Q3FY09:    31.44%      44.93            44.93%

MOBILE 
                        ARPU   MOU     RPM

Q3FY10            230       446       0.51
Q2FY10            252       450       0.56     
Q1FY10            278       478       0.58     
Q4FY09            305       485       0.63     
Q3FY09            324       505       0.64
Q2FY09            331       526       0.63
Q1FY09            350       534       0.655

BHARTI Infratel

* Revenues: Rs 926.7 crore versus Rs 858.6 crore
* EBIDTA: Rs 426.9  crore versus Rs 402 crore
* Tenancy: 1.57 versus1.49
* Towers:  29806 versus 29112

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Particulars	Dec-09	Sep-09	Jun-09	Mar-09
Net Sales / Interest Earned / Operating Income	8755.45	8901.66	9040.51	9016.81
Other Income	16.11	25.44	15.78	32.85
Expenditure	-5450.36	-5365.99	-5453.61	-5480.07
Interest	225.66	-80.02	430.17	-344.8
Profit Before Depreciation and Tax	3546.86	3481.09	4032.85	3224.79
Depreciation	-990.18	-944	-953.04	-902.33
Profit before Tax	2556.68	2537.09	3079.81	2322.46
Tax	-244.58	-240.15	-392.3	-247.47
Net Profit	2312.1	2296.94	2687.51	2074.99
Equity Capital	1898.48	1898.42	1898.37	1898.24