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BHARTI AIRTEL 2019-20 Annual Report Analysis
Tue, 31 Mar

BHARTI AIRTEL has announced its results for the year ended March 2020. Let us have a look at the detailed performance review of the company during FY19-20.

BHARTI AIRTEL Income Statement Analysis

  • Operating income during the year rose 8.9% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 114.3% YoY during the fiscal. Operating profit margins witnessed a growth and stood at 4.4% in FY20 as against 33.5% in FY19.
  • Depreciation charges increased by 26.9% and finance costs increased by 32.5% YoY, respectively.
  • Other income declined by 45.1% YoY.
  • Net profit for the year declined by 2451.3% YoY.
  • Net profit margins during the year declined from 1.6% in FY19 to 35.6% in FY20.

BHARTI AIRTEL Income Statement 2019-20

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Net Sales Rs m 807,802 879,380 8.9%
Other income Rs m 27,991 15,357 -45.1%
Total Revenues Rs m 835,793 894,737 7.1%
Gross profit Rs m 270,832 -38,670 -114.3%
Depreciation Rs m 213,475 270,944 26.9%
Interest Rs m 106,222 140,732 32.5%
Profit before tax Rs m -20,874 -434,989 1,983.9%
Tax Rs m -34,193 -121,823 256.3%
Profit after tax Rs m 13,319 -313,166 -2,451.3%
Gross profit margin % 33.5 -4.4
Effective tax rate % 163.8 28.0
Net profit margin % 1.6 -35.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



New Research: 2 stocks to buy as Nifty50 heads towards 40,000

BHARTI AIRTEL Balance Sheet Analysis

  • The company's current liabilities during FY20 stood at Rs 1,315 billion as compared to Rs 930 billion in FY19, thereby witnessing an increase of 41.4%.
  • Long-term debt stood at Rs 911 billion as compared to Rs 825 billion during FY19, a growth of 10.4%.
  • Current assets rose 133% and stood at Rs 766 billion, while fixed assets rose 10% and stood at Rs 2,571 billion in FY20.
  • Overall, the total assets and liabilities for FY20 stood at Rs 3,338 billion as against Rs 2,662 billion during FY19, thereby witnessing a growth of 25%.

BHARTI AIRTEL Balance Sheet as on March 2020

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Networth Rs m 713,478 770,775 8.0
 
Current Liabilities Rs m 930,134 1,314,876 41.4
Long-term Debt Rs m 824,901 910,792 10.4
Total Liabilities Rs m 2,662,181 3,337,630 25.4
 
Current assets Rs m 328,642 766,432 133.2
Fixed Assets Rs m 2,333,539 2,571,198 10.2
Total Assets Rs m 2,662,181 3,337,630 25.4
* 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 FY20 stood at Rs 181 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY20 stood at Rs -305 billion, an improvement of 7.0% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY20 stood at Rs 191 billion, an improvement of 102% on a YoY basis.
  • Overall, net cash flows for the company during FY20 stood at Rs 77 billion from the Rs 12 billion net cash flows seen during FY19.

BHARTI AIRTEL Cash Flow Statement 2019-20

Particulars No. of months 12 12 % Change
Year Ending Mar-19 Mar-20
Cash Flow from Operating Activities Rs m 200,702 181,287 -9.7%
Cash Flow from Investing Activities Rs m -285,009 -304,919 -
Cash Flow from Financing Activities Rs m 94,638 191,444 102.3%
Net Cash Flow Rs m 12,484 76,746 514.8%
* 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 -57.4, an decline from the EPS of Rs 3.3 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 440.6, stands at -8.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 3.4 times, while the price to sales ratio stands at 2.7 times.
  • The company's price to cash flow (P/CF) ratio stood at -57.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Sales per share (Unadj.) Rs 202.1 161.2
TTM Earnings per share Rs 3.3 -57.4
Diluted earnings per share Rs 2.3 -53.2
Price to Cash Flow x 8.6 -57.0
TTM P/E ratio x 147.1 -8.2
Price / Book Value ratio x 1.7 3.1
Market Cap Rs m 1,180,632 2,404,810
Dividends per share (Unadj.) Rs 2.5 2.0
* 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 improved and stood at 0.6x during FY20, from 0.4x during FY19. 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 -2.1x during FY20, from 0.8x during FY19. 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 declined and down at -40.6% during FY20, from 1.9% during FY20. 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 -17.5% during FY20, from 5.5% during FY19. 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 declined and down at -5.2% during FY20, from 4.5% during FY19. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-19* 12 Mar-20*
Current ratio x 0.4 0.6
Debtors’ Days Days 19 19
Interest coverage x 0.8 -2.1
Debt to equity ratio x 1.2 1.2
Return on assets % 4.5 -5.2
Return on equity % 1.9 -40.6
Return on capital employed % 5.5 -17.5
* 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 up from Rs 332.9 to Rs 440.6, registering a gain of Rs 107.7 or around 32.4%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 6,403.4 (up 2.8%). Over the last one year it has moved down from 7,621.8 to 6,403.4, a loss of 1,218 points (down 16.0%).

Overall, the S&P BSE SENSEX is down 24.2% 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 1,229.1 per share. You can check out the latest share price performance of BHARTI AIRTEL here...

What was the revenue of BHARTI AIRTEL in FY20? How does it compare to earlier years?

The revenues of BHARTI AIRTEL stood at Rs 894,737 m in FY20, which was up 7.1% compared to Rs 835,793 m reported in FY19.

BHARTI AIRTEL's revenue has fallen from Rs 982,518 m in FY16 to Rs 894,737 m in FY20.

Over the past 5 years, the revenue of BHARTI AIRTEL has grown at a CAGR of -2.3%.

What was the net profit of BHARTI AIRTEL in FY20? How does it compare to earlier years?

The net loss of BHARTI AIRTEL stood at Rs -313,166 m in FY20, which was down -2,451.3% compared to Rs 13,319 m reported in FY19.

This compares to a net profit of Rs 11,226 m in FY18 and a net profit of Rs 31,965 m in FY17.

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

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 FY20 and stood at Rs 181,287 m as compared to Rs 200,702 m in FY19.
  • Cash flow from investments decreased in FY20 and stood at Rs -304,919 m as compared to Rs -285,009 m in FY19.
  • Cash flow from financial activity increased in FY20 and stood at Rs 191,444 m as compared to Rs 94,638 m in FY19.

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

(Rs m)FY16FY17FY18FY19FY20
From Operations279,423282,799298,538200,702181,287
From Investments-142,257-306,044-279,676-285,009-304,919
From Financial Activity-119,461-3,51419,20594,638191,444
Net Cashflow19,048-27,51538,34812,48476,746

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 growth and stood at 4.4% in FY20 as against 33.5% in FY19.
  • Net profit margins declined from 1.6% in FY19 to 35.6% in FY20.
  • Debt to Equity ratio for FY20 stood at 1.2 as compared to 1.2 in FY19.

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

 FY16FY17FY18FY19FY20
Operating Profit Margin (%)37.435.635.433.5-4.4
Net Profit Margin (%)6.03.31.41.6-35.6
Debt to Equity Ratio (x)1.31.31.21.21.2

Read: Latest Annual Report Analysis of BHARTI AIRTEL

Equitymaster requests your view! Post a comment on "BHARTI AIRTEL 2019-20 Annual Report Analysis". Click here!

1 Responses to "BHARTI AIRTEL 2019-20 Annual Report Analysis"

arsh

Jul 1, 2021

i need this report for my assignment on corporate reporting
thanks

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