Bharti Airtel Limited is a leading global telecommunications company with operations in 20

countries across Asia and Africa. Headquartered in New Delhi, India, the company ranks
amongst the top 3 mobile service providers globally in terms of subscribers. Airtel is the
largest provider of mobile telephony and second largest provider of fixed telephony in India,
and is also a provider of broadband and subscription television services. The brand is
operated by several subsidiaries of Bharti Airtel Limited with Bharti Hexacom and Bharti
Telemedia providing broadband fixed line services and Bharti Infratel Limited providing
telecom passive infrastructure service such as telecom equipment and telecom
towers.[3][4]Bharti Airtel Limited is part of Bharti Enterprises and is headed by Sunil Bharti
Mittal.
Airtel is the first Indian telecom service provider to achieve Cisco Gold Certification.[5] It also
acts as a carrier for national and international long distance communication services. The
company has a submarine cable landing station at Chennai, which a connect to Singapore.
As of June 2015, Airtel has 234.11 million subscribers with a market share of 23.25% in the
Indian telephony market.
In India, the company's product offerings include 2G, 3G and 4G wireless services, mobile
commerce, fixed line services, high speed DSL broadband, IPTV, DTH, enterprise services
including national & international long distance services to carriers. In the rest of the
geographies, it offers 2G, 3G wireless services and mobile commerce. Bharti Airtel had over
324 million customers across its operations at the end of March 2015. We are Indias largest
telecom company. The 200+ million strong and growing airtel family is built on strong values
and code of ethics.

NAME Bharti Airtel Limited.

Bharti Airtel Limited is a leading global

telecommunications company with operations in 19
countries across Asia and Africa. Headquartered in New
Delhi, India, the company ranks amongst the top 3
mobile service providers globally in terms of subscribers.
In India, the company's product offerings include 2G, 3G
BUSINESS
and 4G wireless services, mobile commerce, fixed line
DESCRIPTION
services, high speed DSL broadband, IPTV, DTH,
enterprise services including national & international long
distance services to carriers. In the rest of the
geographies, it offers 2G, 3G, 4G wireless services and
mobile commerce. Bharti Airtel had nearly 358 million
customers across its operations at the end of June 2016

ESTABLISHED July 07, 1995, as a Public Limited Company

ISIN INE397D01024
 Rs. 255,465 million (ended June 30, 2016-Audited)
PROPORTIONATE
Rs. 236,709 million (ended June 30, 2015-Audited)
REVENUE
As per Ind-AS Accounts
Rs. 95,913 million (ended June 30, 2016-Audited)
PROPORTIONATE
Rs. 82,397 million (ended June 30, 2015-Audited)
EBITDA
As per Ind-AS Accounts

SHARES IN ISSUE 3997.4 Mn shares as at June 30, 2016

Bombay Stock Exchange Limited (BSE)

LISTINGS
National Stock Exchange of India Limited (NSE)
STOCK
NSE BHARTIARTL
EXCHANGE
BSE 532454
SYMBOL
India: 255,735,000 GSM mobile; 2,020,000 Homes
customers and 12,149,000- Digital TV Services
MARKET
(status as on June 30, 2016)
CAPITALISATION
Africa: 76,986,000 GSM mobile customers, SA: 9,245,000
CUSTOMER BASE
mobile customers
(status as on June 30, 2016)
Bharti Airtel Limited
(A Bharti Enterprise)
Bharti Crescent, 1 Nelson Mandela Road,
REGISTERED
Vasant Kunj, Phase II,
OFFICE
New Delhi - 110 070.
Tel. No.: +91 11 4666 6100
Fax No.: +91 11 4666 6411
Our vision is to enrich the lives of our customers. Our
VISION obsession is to win customers for life through exceptional
experience.
Grow market share profitably. Accelerate non-mobile
OBJECTIVES
businesses.

VALUES Alive. Inclusive. Respectful.

 Grow share of new smartphones and 4G devices
Win through Accelerate data penetration via intuitive pricing and
1 go-to-market innovation
excellence Build Indias no. 1 Payments Bank through a frugal
and digital model
Eliminate customer frustration through quality
Win with a obsession
Brilliant Improve customer advocacy through granular
2
Network planning and communication
Experience Drive down unit cost per MB through leveraging
multiple technologies
Grow 3G/4G data by encouraging consumption,
bundling and upgradation
Grow postpaid through propositions, store
Win with experience and B2B drive
3 valuable Accelerate B2B through improved experience
customers Scale homes through high-speed broadband, low-
cost access and bundling
Win DTH through disproportionate share of
digitization and innovation
Drive down cost
Win with a
4 Lower costs and maximise sharing
war on waste
Cut waste by network re-design
High-performance culture
Win with
5 Grow talent through strong learning, mentoring and
people
succession planning

Depreciation Method followed

Assets are depreciated to the residual values on a straight-line basis over the useful lives of
respective assets as estimated by the management. The depreciation period and the
depreciation method for a tangible asset are reviewed at least at each financial year end.
Changes in the expected useful life is accounted for as changes in accounting estimates and
accounted prospectively over the remaining useful life. Changes in the expected pattern of
consumption of future economic benefits embodied in the asset is accounted for as change
in the depreciation method and accounted retrospectively, thus, depreciation is
recalculated in accordance with the new method from the date of the asset coming into use
and any excess or deficit on such re-computation is accounted in the statement of profit and
loss when such change is effected. Freehold Land is not depreciated.
Inventory valuation

Inventory is valued at the lower of cost and net realisable value. Cost is determined on First
in First out basis. Inventory costs include purchase price, freight inward and transit
insurance charges. Net realisable value is the estimated selling price in the ordinary course
of business, less estimated costs of completion and the estimated costs necessary to make
the sale.
The Company provides for obsolete and slow-moving inventory based on management
estimates of the usability of inventory.

Major Accounting Standards followed

AS 20 Earning per share
AS 18 Related party disclosures
In the preparation of the annual accounts, the applicable accounting standards had
been followed, along with proper explaination relating to material departures. No
further explaination is given

THE COMPANY FOLLOWS IFRS AS WELL AS IAS.

RATIOS Mar-12 Mar-13 Mar-14 Mar-15 Mar-16

Per Share Ratios
Basic EPS (Rs.) 15.09 13.42 16.69 33.02 18.88
Dividend / Share(Rs.) 1 1 1.8 3.85 1.36
Revenue from Operations/Share (Rs.) 109.55 119.42 124.88 138.83 150.85
PBDIT/Share (Rs.) 37.57 39.32 42.91 61.6 59.59
Net Profit/Share (Rs.) 15.09 13.42 16.51 33.02 18.88
Profitability Ratios
PBDIT Margin (%) 34.29 32.92 34.36 44.37 39.5
Net Profit Margin (%) 13.77 11.23 13.22 23.78 12.51
Return on Networth / Equity (%) 11.59 9.41 9.89 16.86 8.93
Return on Capital Employed (%) 9.36 7.44 8.34 12.76 5.62
Return on Assets (%) 7.13 5.79 6.72 10.44 4.66
Total Debt/Equity (X) 0.29 0.24 0.13 0.26 0.5
Asset Turnover Ratio (%) 51.79 51.6 50.83 43.89 37.23
Liquidity Ratios
Current Ratio (X) 0.73 0.32 0.35 0.64 0.41
Quick Ratio (X) 0.73 0.32 0.35 0.64 0.41
Inventory Turnover Ratio (X) 1,296.07 21,595.67 45,380.45 5,903.87 11,377.40
Cash Earnings Retention Ratio (%) 96.74 96.82 94.8 92.59 96.82
Valuation Ratios
Earnings Yield 0.04 0.05 0.05 0.08 0.05
 Basic EPS (Rs.)
35

30

25

20

15 Basic EPS (Rs.)

10

0
Mar/12 Mar/13 Mar/14 Mar/15 Mar/16

Earnings per share (EPS) is the portion of a company's profit allocated to each outstanding
share of common stock. Earnings per share serves as an indicator of a company's
profitability.

Calculated as:

The basic EPS is showing a general rising trend having a steep rise in mar2105 and
then falling again in mar16

However if we look at the overall period EPS has increased . This helps in building
shareholders trust in company
 Dividend / Share(Rs.)
4.5
4
3.5
3
2.5
2 Dividend / Share(Rs.)
1.5
1
0.5
0
Mar/12 Mar/13 Mar/14 Mar/15 Mar/16

Dividend per share (DPS) is the sum of declared dividends issued by a company for
every ordinary share outstanding. Dividend per share (DPS) is the total dividends paid out by
a business, including interim dividends, divided by the number of outstanding ordinary
shares issued. A company's DPS is usually derived using the dividend paid in the most recent
quarter, which is also used to calculate the dividend yield. DPS can be calculated by using
the following formula:

D - Sum of dividends over a period (usually 1 year)

SD - Special, one time dividends
S - Shares outstanding for the period

The dividend per share increased till mar15 and then fell to approximately 1.4 in mar16

The fall in Dividend per share is huge and this might be because of fall in profitability of the company
for the year
 Revenue from Operations/Share (Rs.)
160
140
120
100
80 Revenue from
Operations/Share (Rs.)
60
40
20
0
Mar/12 Mar/13 Mar/14 Mar/15 Mar/16

RFO/share = Revenue from operations/ number of shares

Revenue from operations/share has seen a general increasing trend throughout the period . it
signifies higher sales turnover of the company and improved productivity.

Looking at the graph the rise in revenue from operations has been on nearly constant basis and is a
good sign for the company
 PBDIT/Share (Rs.)
70

60

50

40

30 PBDIT/Share (Rs.)

20

10

0
Mar/12 Mar/13 Mar/14 Mar/15 Mar/16

PBDIT/ share = Profit before Depreciation, interest and tax/ No. of shares

PBDIT/share has fallen after Mar15 till which it showed an increasing trend, for the year ended
Mar16 this trend was hampered by slowdown in telecom and PBDIT/share fell marginally.
 Net Profit/Share (Rs.)
35

30

25

20

15 Net Profit/Share (Rs.)

10

0
Mar/12 Mar/13 Mar/14 Mar/15 Mar/16

Net Profit/share = Profit after Tax/ No. of shares

Net profit per share is basically income available to be distributed to shareholders, this had seen a
general rising trend with a steep rise in Mar15 and in the next year this development was hampered
with Net profit/share falling to approx. Rs17

Company need to evaluate its economic , legal , political and internal processes to discover what was
the reason for this and improve profitability for future years.
 PBDIT Margin (%)
50
45
40
35
30
25
PBDIT Margin (%)
20
15
10
5
0
Mar/12 Mar/13 Mar/14 Mar/15 Mar/16

PBDIT MARGIN = (Profit before Depreciation, interest and tax/ Sales) * 100

Operating Profit gives an indication of the current operational profitability of the business
and allows a comparison of profitability between different companies after removing out
expenses that can obscure how the company is really performing.
Interest cost depends on the management's choice of financing, tax can vary widely
depending on acquisitions and losses in prior years, and depreciation and amortization
policies may differ from company to company.

PBDIT margin similar to other profitability ratio has seen an increase till Mar15 and then a
steep fall in Mar16.

This means that total expenses of the company has risen, excluding interest .

Company needs to keep a check on these and try to control them

 Net Profit Margin (%)
25

20

15

Net Profit Margin (%)

10

0
Mar/12 Mar/13 Mar/14 Mar/15 Mar/16

Net Profit Margin = (Profit after Tax/ Sales) * 100

The net profit margin has again shown similar trends , signifying a decrease in efficiency and
profitability of the company

Mar16 has not been a good year for airtel in terms of net profit margin
 Return on Networth / Equity (%)
18
16
14
12
10
Return on Networth /
8 Equity (%)
6
4
2
0
Mar/12 Mar/13 Mar/14 Mar/15 Mar/16

The return on equity ratio reveals the amount of return earned on the shareholders' equity
invested in a business. The measurement is commonly used by investors to evaluate current
and prospective business investments. This return can be improved when a business buys
back its own stock from investors, or by using more debt and less equity to fund its
operations.

To calculate the return on equity, simply divide net income by the total amount of equity. The
formula is:

Net income
Equity

The return on equity had risen up till Mar15 post which it showed a steep decline , falling
even below the Mar12 level.

This is a very huge fall and needs to be addressed by the BOD immediately
 Return on Assets (%)
12

10

6
Return on Assets (%)
4

0
Mar/12 Mar/13 Mar/14 Mar/15 Mar/16

Return on assets (ROA) is an indicator of how profitable a company is relative to its

total assets. ROA gives an idea as to how efficient management is at using
its assets to generate earnings. Calculated by dividing a company's
annual earnings by its total assets, ROA is displayed as a percentage. Sometimes
this is referred to as "return on investment".

The formula for return on assets is:

 Total Debt/Equity (X)
0.6

0.5

0.4

0.3
Total Debt/Equity (X)
0.2

0.1

0
Mar/12 Mar/13 Mar/14 Mar/15 Mar/16

Debt/Equity Ratio is a debt ratio used to measure a company's financial leverage,

calculated by dividing a companys total liabilities by its stockholders' equity. The D/E
ratio indicates how much debt a company is using to finance its assets relative to the
amount of value represented in shareholders equity.

The formula for calculating D/E ratios can be represented in the following way:

Debt - Equity Ratio = Total Liabilities / Shareholders' Equity

 Asset Turnover Ratio (%)
60

50

40

30 Asset Turnover Ratio

(%)
20

10

0
Mar/12 Mar/13 Mar/14 Mar/15 Mar/16

Asset turnover ratio is the ratio of the value of a

companys sales or revenues generated relative to the value of its assets. The Asset
Turnover ratio can often be used as an indicator of the efficiency with which a
company is deploying its assets in generating revenue.

Asset Turnover = Sales or Revenues / Total Assets

 Current Ratio (X)
0.8
0.7
0.6
0.5
0.4
Current Ratio (X)
0.3
0.2
0.1
0
Mar/12 Mar/13 Mar/14 Mar/15 Mar/16

The current ratio is a liquidity ratio that measures a company's ability to pay short-
term and long-term obligations. To gauge this ability, the current ratio considers the
current total assets of a company (both liquid and illiquid) relative to that companys
current total liabilities.

The formula for calculating a companys current ratio, then, is:

Current Ratio = Current Assets / Current Liabilities

The current ratio is called current because, unlike some other liquidity ratios, it
incorporates all current assets and liabilities.

The current ratio is also known as the working capital ratio.

 Quick Ratio (X)
0.8
0.7
0.6
0.5
0.4
Quick Ratio (X)
0.3
0.2
0.1
0
Mar/12 Mar/13 Mar/14 Mar/15 Mar/16

The quick ratio is an indicator of a companys short-term liquidity. The quick

ratio measures a companys ability to meet its short-term obligations with its most
liquid assets. For this reason, the ratio excludes inventories from current assets, and
is calculated as follows:

Quick ratio = (current assets inventories) / current liabilities, or

= (cash and equivalents + marketable securities + accounts receivable) / current

liabilities
 Inventory Turnover Ratio (X)
50,000.00
45,000.00
40,000.00
35,000.00
30,000.00
25,000.00 Inventory Turnover
20,000.00 Ratio (X)
15,000.00
10,000.00
5,000.00
0.00
Mar/12 Mar/13 Mar/14 Mar/15 Mar/16

Inventory turnover is a ratio showing how many times a company's inventory is sold
and replaced over a period of time. The days in the period can then be divided by the
inventory turnover formula to calculate the days it takes to sell the inventory on hand.
It is calculated as sales divided by average inventory.

Inventory turnover is calculated as sales divided by average inventory. Average inventory is

calculated as: (beginning inventory + ending inventory)/2. Using average inventory accounts
for any seasonality effects on the ratio. Inventory turnover is also calculated using the cost of
goods sold (COGS), which is the total cost of inventory. Analysts divide COGS by average
inventory instead of sales for greater accuracy in the calculation of inventory turnover. This is
because sales include a markup over cost. Dividing sales by average inventory inflates
inventory turnover.
 Cash Earnings Retention Ratio (%)
98
97
96
95
94 Cash Earnings
Retention Ratio (%)
93
92
91
90
Mar/12 Mar/13 Mar/14 Mar/15 Mar/16

Earning Retention Ratio is also called as Plowback Ratio. As per definition, Earning
Retention Ratio or Plowback Ratio is the ratio that measures the amount of earnings
retained after dividends have been paid out to the shareholders. The prime idea behind
earnings retention ratio is that the more the company retains the faster it has chances of
growing as a business.
Formula to calculate Earnings Retention Ratio or Plowback ratio
= Plowed back gross profits / total gross profits
= Total Gross Profits Payout ratio
= (Total Net Profit / Number of Total share) - (Dividend / Share)
The investors prefer to have a higher retention ratio in a fast growing business, and lower
retention ratio in a slower growing business.
 Earnings Yield
0.09
0.08
0.07
0.06
0.05
0.04 Earnings Yield
0.03
0.02
0.01
0
Mar/12 Mar/13 Mar/14 Mar/15 Mar/16

Earnings yield are the earnings per share for the most recent 12-month period divided by the
current market price per share. The earnings yield (which is the inverse of the P/E ratio)
shows the percentage of each dollar invested in the stock that was earned by the company.
The earnings yield is used by many investment managers to determine optimal asset
allocations.