Helping You Build Wealth With Honest Research
Since 1996. Try Now

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

BHARTI AIRTEL 2020-21 Annual Report Analysis
Wed, 31 Mar

BHARTI AIRTEL has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

BHARTI AIRTEL Income Statement Analysis

  • Operating income during the year rose 16.6% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 891.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 29.8% in FY21 as against 4.4% in FY20.
  • Depreciation charges increased by 8.5% and finance costs increased by 7.2% YoY, respectively.
  • Other income declined by 58.1% YoY.
  • Net profit for the year declined by 28.1% YoY.
  • Net profit margins during the year grew from 35.6% in FY20 to 22.0% in FY21.

BHARTI AIRTEL Income Statement 2020-21

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Net Sales Rs m 879,380 1,025,174 16.6%
Other income Rs m 15,357 6,428 -58.1%
Total Revenues Rs m 894,737 1,031,602 15.3%
Gross profit Rs m -38,670 305,939 -891.2%
Depreciation Rs m 270,944 294,044 8.5%
Interest Rs m 140,732 150,910 7.2%
Profit before tax Rs m -434,989 -132,587 -69.5%
Tax Rs m -121,823 92,456 -175.9%
Profit after tax Rs m -313,166 -225,043 -28.1%
Gross profit margin % -4.4 29.8
Effective tax rate % 28.0 -69.7
Net profit margin % -35.6 -22.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Read Now: We're Bullish on 2 Non-Nifty Stocks

BHARTI AIRTEL Balance Sheet Analysis

  • The company's current liabilities during FY21 down at Rs 1,116 billion as compared to Rs 1,315 billion in FY20, thereby witnessing an decrease of -15.1%.
  • Long-term debt stood at Rs 1,106 billion as compared to Rs 911 billion during FY20, a growth of 21.4%.
  • Current assets fell 29% and stood at Rs 548 billion, while fixed assets rose 5% and stood at Rs 2,712 billion in FY21.
  • Overall, the total assets and liabilities for FY21 stood at Rs 3,259 billion as against Rs 3,338 billion during FY20, thereby witnessing a fall of 2%.

BHARTI AIRTEL Balance Sheet as on March 2021

No. of Mths Year Ending 12 Mar-20* 12 Mar-21* % Change
Networth Rs m 770,775 588,650 -23.6
 
Current Liabilities Rs m 1,314,876 1,116,359 -15.1
Long-term Debt Rs m 910,792 1,105,603 21.4
Total Liabilities Rs m 3,337,630 3,259,414 -2.3
 
Current assets Rs m 766,432 547,529 -28.6
Fixed Assets Rs m 2,571,198 2,711,885 5.5
Total Assets Rs m 3,337,630 3,259,414 -2.3
* 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 FY21 stood at Rs 482 billion, an improvement of 165.9% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY21 stood at Rs -269 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY21 stood at Rs -249 billion on a YoY basis.
  • Overall, net cash flows for the company during FY21 stood at Rs -40 billion from the Rs 77 billion net cash flows seen during FY20.

BHARTI AIRTEL Cash Flow Statement 2020-21

Particulars No. of months 12 12 % Change
Year Ending Mar-20 Mar-21
Cash Flow from Operating Activities Rs m 181,287 482,050 165.9%
Cash Flow from Investing Activities Rs m -304,919 -268,884 -
Cash Flow from Financing Activities Rs m 191,444 -249,103 -
Net Cash Flow Rs m 76,746 -39,909 -
* 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 -41.0, an improvement from the EPS of Rs -57.4 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 517.3, stands at -13.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 5.2 times, while the price to sales ratio stands at 2.8 times.
  • The company's price to cash flow (P/CF) ratio stood at 40.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Sales per share (Unadj.) Rs 161.2 186.7
TTM Earnings per share Rs -57.4 -41.0
Diluted earnings per share Rs -53.2 -38.2
Price to Cash Flow x -61.4 40.5
TTM P/E ratio x -8.2 -13.2
Price / Book Value ratio x 3.1 4.7
Market Cap Rs m 2,404,810 2,792,833
Dividends per share (Unadj.) Rs 2.0 0.0
* 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 deteriorated and stood at 0.5x during FY21, from 0.6x during FY20. 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 0.1x during FY21, from -2.1x during FY20. 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 -38.2% during FY21, from -40.6% during FY21. 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 1.1% during FY21, from -17.5% during FY20. 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 -2.3% during FY21, from -5.2% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-20* 12 Mar-21*
Current ratio x 0.6 0.5
Debtors’ Days Days 19 13
Interest coverage x -2.1 0.1
Debt to equity ratio x 1.2 1.9
Return on assets % -5.2 -2.3
Return on equity % -40.6 -38.2
Return on capital employed % -17.5 1.1
* 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 440.6 to Rs 517.3, registering a gain of Rs 76.7 or around 17.4%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 11,919.9 (down 0.9%). Over the last one year it has moved up from 6,403.4 to 11,919.9, a gain of 5,517 points (up 86.1%).

Overall, the S&P BSE SENSEX is up 74.1% 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 FY21? How does it compare to earlier years?

The revenues of BHARTI AIRTEL stood at Rs 1,031,602 m in FY21, which was up 15.3% compared to Rs 894,737 m reported in FY20.

BHARTI AIRTEL's revenue has grown from Rs 974,381 m in FY17 to Rs 1,031,602 m in FY21.

Over the past 5 years, the revenue of BHARTI AIRTEL has grown at a CAGR of 1.4%.

What was the net profit of BHARTI AIRTEL in FY21? How does it compare to earlier years?

The net loss of BHARTI AIRTEL stood at Rs -225,043 m in FY21, which was down -28.1% compared to Rs -313,166 m reported in FY20.

This compares to a net profit of Rs 13,319 m in FY19 and a net profit of Rs 11,226 m in FY18.

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 increased in FY21 and stood at Rs 482,050 m as compared to Rs 181,287 m in FY20.
  • Cash flow from investments increased in FY21 and stood at Rs -268,884 m as compared to Rs -304,919 m in FY20.
  • Cash flow from financial activity decreased in FY21 and stood at Rs -249,103 m as compared to Rs 191,444 m in FY20.

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

(Rs m)FY17FY18FY19FY20FY21
From Operations282,799298,538200,702181,287482,050
From Investments-306,044-279,676-285,009-304,919-268,884
From Financial Activity-3,51419,20594,638191,444-249,103
Net Cashflow-27,51538,34812,48476,746-39,909

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 down at 29.8% in FY21 as against 4.4% in FY20.
  • Net profit margins grew from 35.6% in FY20 to 22.0% in FY21.
  • Debt to Equity ratio for FY21 stood at 1.9 as compared to 1.2 in FY20.

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

 FY17FY18FY19FY20FY21
Operating Profit Margin (%)35.635.433.5-4.429.8
Net Profit Margin (%)3.31.41.6-35.6-22.0
Debt to Equity Ratio (x)1.31.21.21.21.9

Read: Latest Annual Report Analysis of BHARTI AIRTEL

Equitymaster requests your view! Post a comment on "BHARTI AIRTEL 2020-21 Annual Report Analysis". Click here!