BHARTI AIRTEL 2019-20 Annual Report Analysis

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BHARTI AIRTEL 2019-20 Annual Report Analysis
Fri, 23 Oct

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 8.4% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 43.7% YoY during the fiscal. Operating profit margins witnessed a fall and down at 44.3% in FY20 as against 33.4% in FY19.
  • Depreciation charges increased by 29.7% and finance costs increased by 31.7% YoY, respectively.
  • Other income declined by 6.2% YoY.
  • Net profit for the year declined by 1917.1% YoY.
  • Net profit margins during the year declined from 2.1% in FY19 to 34.9% in FY20.

BHARTI AIRTEL Income Statement 2019-20

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Net Sales Rs m 807,802 875,390 8.4%
Other income Rs m 3,463 3,248 -6.2%
Total Revenues Rs m 811,265 878,638 8.3%
Gross profit Rs m 269,628 387,445 43.7%
Depreciation Rs m 213,475 276,896 29.7%
Interest Rs m 106,222 139,918 31.7%
Profit before tax Rs m -46,606 -26,121 -44.0%
Tax Rs m -34,193 -121,823 256.3%
Profit after tax Rs m 16,875 -306,642 -1,917.1%
Gross profit margin % 33.4 44.3
Effective tax rate % 73.4 466.4
Net profit margin % 2.1 -34.9
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



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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 12% and stood at Rs 1,989 billion in FY20.
  • Overall, the total assets and liabilities for FY20 stood at Rs 3,608 billion as against Rs 2,752 billion during FY19, thereby witnessing a growth of 31%.

BHARTI AIRTEL Balance Sheet as on March 2020

No. of Mths Year Ending 12 Mar-19* 12 Mar-20* % Change
Networth Rs m 714,222 71,448 -90.0
 
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 2,751,560 3,607,790 31.1
 
Current assets Rs m 328,642 766,432 133.2
Fixed Assets Rs m 1,772,095 1,989,186 12.3
Total Assets Rs m 2,751,560 3,607,790 31.1
* 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 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 103% 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 94,368 191,444 102.9%
Net Cash Flow Rs m 12,214 76,746 528.3%
* 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 -56.2, an decline from the EPS of Rs 4.2 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 429.1, stands at -5.3 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 33.7 times, while the price to sales ratio stands at 2.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 6.3 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 202.1 160.5
TTM Earnings per share Rs 4.2 -56.2
Diluted earnings per share Rs 3.1 -56.2
Price to Cash Flow x 8.5 6.3
TTM P/E ratio x -3.9 -5.3
Price / Book Value ratio x 1.7 33.7
Market Cap Rs m 1,715,284 2,340,980
Dividends per share (Unadj.) Rs 15.0 2.0
* 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 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 improved and stood at 0.8x during FY20, from 0.6x 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 -429.2% during FY20, from 2.4% 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 -29.4% during FY20, from 5.8% 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 -4.6% 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 0.6 0.8
Debt to equity ratio x 1.2 12.7
Return on assets % 4.5 -4.6
Return on equity % 2.4 -429.2
Return on capital employed % 5.8 -29.4
* 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 up from Rs 360.5 to Rs 429.1, registering a gain of Rs 68.6 or around 19.0%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 9,955.6 (up 0.1%). Over the last one year it has moved up from 7,133.6 to 9,955.6, a gain of 2,822 points (up 39.6%).

Overall, the S&P BSE SENSEX is up 4.4% over the year.

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

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Related Views on News

BHARTI AIRTEL 2018-19 Annual Report Analysis (Annual Result Update)

Sep 9, 2019 | Updated on Sep 9, 2019

Here's an analysis of the annual report of BHARTI AIRTEL for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of BHARTI AIRTEL. Also includes updates on the valuation of BHARTI AIRTEL.

BHARTI AIRTEL Announces Quarterly Results (1QFY20); Net Profit Down 890.7% (Quarterly Result Update)

Aug 2, 2019 | Updated on Aug 2, 2019

For the quarter ended June 2019, BHARTI AIRTEL has posted a net profit of Rs 25 bn (down 890.7% YoY). Sales on the other hand came in at Rs 207 bn (up 3.3% YoY). Read on for a complete analysis of BHARTI AIRTEL's quarterly results.

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