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BHARTI AIRTEL 2018-19 Annual Report Analysis
Sun, 31 Mar

BHARTI AIRTEL has announced its results for the year ended March 2019. Let us have a look at the detailed performance review of the company during FY18-19.

BHARTI AIRTEL Income Statement Analysis

  • Operating income during the year fell 2.2% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 7.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 33.5% in FY19 as against 35.4% in FY18.
  • Depreciation charges increased by 10.9% and finance costs increased by 13.9% YoY, respectively.
  • Other income grew by 82.8% YoY.
  • Net profit for the year grew by 18.6% YoY.
  • Net profit margins during the year grew from 1.4% in FY18 to 1.6% in FY19.

BHARTI AIRTEL Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 826,388 807,802 -2.2%
Other income Rs m 15,310 27,991 82.8%
Total Revenues Rs m 841,698 835,793 -0.7%
Gross profit Rs m 292,437 270,832 -7.4%
Depreciation Rs m 192,431 213,475 10.9%
Interest Rs m 93,255 106,222 13.9%
Profit before tax Rs m 22,061 -20,874 -194.6%
Tax Rs m 10,835 -34,193 -415.6%
Profit after tax Rs m 11,226 13,319 18.6%
Gross profit margin % 35.4 33.5
Effective tax rate % 49.1 163.8
Net profit margin % 1.4 1.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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BHARTI AIRTEL Balance Sheet Analysis

  • The company's current liabilities during FY19 stood at Rs 930 billion as compared to Rs 782 billion in FY18, thereby witnessing an increase of 18.9%.
  • Long-term debt down at Rs 825 billion as compared to Rs 849 billion during FY18, a fall of 2.9%.
  • Current assets fell 2% and stood at Rs 329 billion, while fixed assets rose 9% and stood at Rs 2,334 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 2,662 billion as against Rs 2,476 billion during FY18, thereby witnessing a growth of 7%.

BHARTI AIRTEL Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 694,562 713,478 2.7
 
Current Liabilities Rs m 782,400 930,134 18.9
Long-term Debt Rs m 849,420 824,901 -2.9
Total Liabilities Rs m 2,476,487 2,662,181 7.5
 
Current assets Rs m 334,991 328,642 -1.9
Fixed Assets Rs m 2,141,496 2,333,539 9.0
Total Assets Rs m 2,476,487 2,662,181 7.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



BHARTI AIRTEL Cash Flow Statement Analysis

  • BHARTI AIRTEL's cash flow from operating activities (CFO) during FY19 stood at Rs 201 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs -285 billion, an improvement of 1.9% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs 95 billion, an improvement of 393% on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs 12 billion from the Rs 38 billion net cash flows seen during FY18.

BHARTI AIRTEL Cash Flow Statement 2018-19

Particulars No. of months 12 12 % Change
Year Ending Mar-18 Mar-19
Cash Flow from Operating Activities Rs m 298,538 200,702 -32.8%
Cash Flow from Investing Activities Rs m -279,676 -285,009 -
Cash Flow from Financing Activities Rs m 19,205 94,638 392.8%
Net Cash Flow Rs m 38,348 12,484 -67.4%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for BHARTI AIRTEL

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.3, an improvement from the EPS of Rs 2.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 332.9, stands at 147.1 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 2.7 times, while the price to sales ratio stands at 1.6 times.
  • The company's price to cash flow (P/CF) ratio stood at 5.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Sales per share (Unadj.) Rs 206.7 202.1
TTM Earnings per share Rs 2.8 3.3
Diluted earnings per share Rs 1.9 2.3
Price to Cash Flow x 11.5 5.2
TTM P/E ratio x 209.1 147.1
Price / Book Value ratio x 2.6 1.7
Market Cap Rs m 1,795,432 1,180,632
Dividends per share (Unadj.) Rs 5.3 2.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for BHARTI AIRTEL

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 0.4x during FY19, from 0.4x during FY18. The current ratio measures the company's ability to pay short-term and long-term obligations.

    Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 0.8x during FY19, from 1.2x during FY18. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

  • Profitability Ratios
  • Return on Equity (ROE): The ROE for the company improved and stood at 1.9% during FY19, from 1.6% during FY19. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

    Return on Capital Employed (ROCE): The ROCE for the company declined and down at 5.5% during FY19, from 7.5% during FY18. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

    Return on Assets (ROA): The ROA of the company improved and stood at 4.5% during FY19, from 4.2% during FY18. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-18* 12 Mar-19*
Current ratio x 0.4 0.4
Debtors’ Days Days 26 19
Interest coverage x 1.2 0.8
Debt to equity ratio x 1.2 1.2
Return on assets % 4.2 4.5
Return on equity % 1.6 1.9
Return on capital employed % 7.5 5.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how BHARTI AIRTEL has performed over the last 5 years, please visit here.

BHARTI AIRTEL Share Price Performance

Over the last one year, BHARTI AIRTEL share price has moved down from Rs 398.9 to Rs 332.9, registering a loss of Rs 66.0 or around 16.5%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 7,621.8 (up 0.4%). Over the last one year it has moved up from 6,513.3 to 7,621.8, a gain of 1,109 points (up 17.0%).

Overall, the S&P BSE SENSEX is up 16.3% over the year.

(To know more, check out historical annual results for BHARTI AIRTEL and quarterly results for BHARTI AIRTEL)

Annual Report FAQs

What is the current share price of BHARTI AIRTEL?

BHARTI AIRTEL currently trades at Rs 1,288.9 per share. You can check out the latest share price performance of BHARTI AIRTEL here...

What was the revenue of BHARTI AIRTEL in FY19? How does it compare to earlier years?

The revenues of BHARTI AIRTEL stood at Rs 835,793 m in FY19, which was down -0.7% compared to Rs 841,698 m reported in FY18.

BHARTI AIRTEL's revenue has fallen from Rs 981,965 m in FY15 to Rs 835,793 m in FY19.

Over the past 5 years, the revenue of BHARTI AIRTEL has grown at a CAGR of -3.9%.

What was the net profit of BHARTI AIRTEL in FY19? How does it compare to earlier years?

The net profit of BHARTI AIRTEL stood at Rs 13,319 m in FY19, which was up 18.6% compared to Rs 11,226 m reported in FY18.

This compares to a net profit of Rs 31,965 m in FY17 and a net profit of Rs 58,264 m in FY16.

Over the past 5 years, BHARTI AIRTEL net profit has grown at a CAGR of -28.3%.

What does the cash flow statement of BHARTI AIRTEL reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of BHARTI AIRTEL reveals:

  • Cash flow from operations decreased in FY19 and stood at Rs 200,702 m as compared to Rs 298,538 m in FY18.
  • Cash flow from investments decreased in FY19 and stood at Rs -285,009 m as compared to Rs -279,676 m in FY18.
  • Cash flow from financial activity increased in FY19 and stood at Rs 94,638 m as compared to Rs 19,205 m in FY18.

Here's the cash flow statement of BHARTI AIRTEL for the past 5 years.

(Rs m)FY15FY16FY17FY18FY19
From Operations280,590279,423282,799298,538200,702
From Investments-223,054-142,257-306,044-279,676-285,009
From Financial Activity-96,724-119,461-3,51419,20594,638
Net Cashflow-39,14519,048-27,51538,34812,484

What does the Key Ratio analysis of BHARTI AIRTEL reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of BHARTI AIRTEL reveals:

  • Operating profit margins witnessed a fall and stood at 33.5% in FY19 as against 35.4% in FY18.
  • Net profit margins grew from 1.4% in FY18 to 1.6% in FY19.
  • Debt to Equity ratio for FY19 stood at 1.2 as compared to 1.2 in FY18.

Here's the ratio/financial analysis of BHARTI AIRTEL for the past 5 years.

 FY15FY16FY17FY18FY19
Operating Profit Margin (%)34.137.435.635.433.5
Net Profit Margin (%)5.36.03.31.41.6
Debt to Equity Ratio (x)1.51.31.31.21.2

Read: Latest Annual Report Analysis of BHARTI AIRTEL

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