BHARTI AIRTEL 2018-19 Annual Report Analysis

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BHARTI AIRTEL 2018-19 Annual Report Analysis
Mon, 9 Sep

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 rose 3.1% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 5.3% YoY during the fiscal. Operating profit margins witnessed a fall and down at 52.6% in FY19 as against 51.5% in FY18.
  • Depreciation charges decreased by 9.2% and finance costs increased by 13.8% YoY, respectively.
  • Other income declined by 3.5% YoY.
  • Net profit for the year grew by 0.0% YoY.
  • Net profit margins during the year declined from 37.1% in FY18 to 36.0% in FY19.

BHARTI AIRTEL Income Statement 2018-19

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Net Sales Rs m 66,212 68,262 3.1%
Other income Rs m 1,052 1,015 -3.5%
Total Revenues Rs m 67,264 69,277 3.0%
Gross profit Rs m 34,128 35,933 5.3%
Depreciation Rs m 12,188 11,064 -9.2%
Interest Rs m 465 529 13.8%
Profit before tax Rs m 22,527 25,355 12.6%
Tax Rs m 10,355 10,589 2.3%
Profit after tax Rs m 24,937 24,938 0.0%
Gross profit margin % 51.5 52.6
Effective tax rate % 46.0 41.8
Net profit margin % 37.1 36.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



BHARTI AIRTEL Balance Sheet Analysis

  • The company's current liabilities during FY19 down at Rs 18 billion as compared to Rs 18 billion in FY18, thereby witnessing an decrease of -2.2%.
  • Current assets fell 44% and stood at Rs 43 billion, while fixed assets fell 6% and stood at Rs 106 billion in FY19.
  • Overall, the total assets and liabilities for FY19 stood at Rs 171 billion as against Rs 197 billion during FY18, thereby witnessing a fall of 13%.

BHARTI AIRTEL Balance Sheet as on March 2019

No. of Mths Year Ending 12 Mar-18* 12 Mar-19* % Change
Networth Rs m 169,644 145,316 -14.3
 
Current Liabilities Rs m 18,159 17,752 -2.2
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 196,796 171,305 -13.0
 
Current assets Rs m 76,120 42,800 -43.8
Fixed Assets Rs m 112,470 105,587 -6.1
Total Assets Rs m 196,796 171,305 -13.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



BHARTI AIRTEL Cash Flow Statement Analysis

  • BHARTI AIRTEL's cash flow from operating activities (CFO) during FY19 stood at Rs 32 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY19 stood at Rs 16 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY19 stood at Rs -48 billion on a YoY basis.
  • Overall, net cash flows for the company during FY19 stood at Rs -362 million from the Rs -19 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 34,694 31,586 -9.0%
Cash Flow from Investing Activities Rs m -18,551 15,999 -
Cash Flow from Financing Activities Rs m -35,548 -47,947 -
Net Cash Flow Rs m -19,405 -362 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for BHARTI AIRTEL

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 6.2, an improvement from the EPS of Rs 6.2 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 354.3, stands at -99.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 8.1 times, while the price to sales ratio stands at 17.3 times.
  • The company's price to cash flow (P/CF) ratio stood at 54.8 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 16.6 17.1
TTM Earnings per share Rs 6.2 6.2
Diluted earnings per share Rs 6.2 6.2
Price to Cash Flow x 58.8 54.8
TTM P/E ratio x -99.0 -99.0
Price / Book Value ratio x 10.6 8.1
Market Cap Rs m 1,416,079 1,416,079
Dividends per share (Unadj.) Rs 2.5 15.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for BHARTI AIRTEL

  • Solvency Ratios
  • Current Ratio: The company's current ratio deteriorated and stood at 2.4x during FY19, from 4.2x 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 48.9x during FY19, from 49.4x 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 17.2% during FY19, from 14.7% 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 improved and stood at 24.8% during FY19, from 21.1% 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 14.9% during FY19, from 12.9% 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 4.2 2.4
Debtors’ Days Days 15 29
Interest coverage x 49.4 48.9
Debt to equity ratio x 0.0 0.0
Return on assets % 12.9 14.9
Return on equity % 14.7 17.2
Return on capital employed % 21.1 24.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, 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 390.8 to Rs 354.3, registering a loss of Rs 36.6 or around 9.4%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 7,864.4 (down 0.4%). Over the last one year it has moved down from 7,884.2 to 7,864.4, a loss of 20 points (down 0.3%).

Overall, the S&P BSE SENSEX is down 2.7% over the year.

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

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