BHARTI AIRTEL 2022-23 Annual Report Analysis

Sun, 6 Aug

BHARTI AIRTEL has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

BHARTI AIRTEL Income Statement Analysis

• Operating income during the year rose 19.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 15.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 51.3% in FY23 as against 52.9% in FY22.
• Depreciation charges increased by 10.1% and finance costs increased by 16.2% YoY, respectively.
• Other income grew by 75.3% YoY.
• Net profit for the year grew by 47.9% YoY.
• Net profit margins during the year grew from 7.1% in FY22 to 8.8% in FY23.

BHARTI AIRTEL Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	1,165,469	1,391,448	19.4%
Other income	Rs m	5,343	9,366	75.3%
Total Revenues	Rs m	1,170,812	1,400,814	19.6%
Gross profit	Rs m	616,557	713,558	15.7%
Depreciation	Rs m	330,907	364,318	10.1%
Interest	Rs m	166,162	192,999	16.2%
Profit before tax	Rs m	124,831	165,607	32.7%
Tax	Rs m	41,779	42,733	2.3%
Profit after tax	Rs m	83,052	122,874	47.9%
Gross profit margin	%	52.9	51.3
Effective tax rate	%	33.5	25.8
Net profit margin	%	7.1	8.8

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BHARTI AIRTEL Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 1,220 billion as compared to Rs 1,140 billion in FY22, thereby witnessing an increase of 7.0%.
• Long-term debt stood at Rs 1,516 billion as compared to Rs 1,135 billion during FY22, a growth of 33.5%.
• Current assets rose 11% and stood at Rs 575 billion, while fixed assets rose 27% and stood at Rs 3,702 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 4,277 billion as against Rs 3,437 billion during FY22, thereby witnessing a growth of 24%.

BHARTI AIRTEL Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	664,537	773,881	16.5
Current Liabilities	Rs m	1,140,260	1,219,638	7.0
Long-term Debt	Rs m	1,135,350	1,515,686	33.5
Total Liabilities	Rs m	3,437,310	4,276,813	24.4
Current assets	Rs m	520,279	575,013	10.5
Fixed Assets	Rs m	2,917,031	3,701,800	26.9
Total Assets	Rs m	3,437,310	4,276,813	24.4

BHARTI AIRTEL Cash Flow Statement Analysis

• BHARTI AIRTEL's cash flow from operating activities (CFO) during FY23 stood at Rs 653 billion, an improvement of 18.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -391 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -245 billion on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 16 billion from the Rs -17 billion net cash flows seen during FY22.

BHARTI AIRTEL Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	550,166	653,246	18.7%
Cash Flow from Investing Activities	Rs m	-418,696	-390,802	-
Cash Flow from Financing Activities	Rs m	-152,032	-244,695	-
Net Cash Flow	Rs m	-16,643	16,227	-

Current Valuations for BHARTI AIRTEL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 20.6, an improvement from the EPS of Rs 14.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 890.3, stands at 52.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.9 times, while the price to sales ratio stands at 3.8 times.
• The company's price to cash flow (P/CF) ratio stood at 9.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	198.1	233.2
TTM Earnings per share	Rs	14.1	20.6
Diluted earnings per share	Rs	13.9	20.5
Price to Cash Flow	x	10.9	9.2
TTM P/E ratio	x	76.9	52.4
Price / Book Value ratio	x	5.7	5.8
Market Cap	Rs m	3,813,477	4,493,917
Dividends per share (Unadj.)	Rs	3.0	4.0

Ratio Analysis for BHARTI AIRTEL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.5x during FY23, from 0.5x during FY22. 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 1.9x during FY23, from 1.8x during FY22. 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 15.9% during FY23, from 12.5% during FY23. 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 15.7% during FY23, from 16.2% during FY22. 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 7.4% during FY23, from 7.3% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	0.5	0.5
Debtors’ Days	Days	13	10
Interest coverage	x	1.8	1.9
Debt to equity ratio	x	1.7	2.0
Return on assets	%	7.3	7.4
Return on equity	%	12.5	15.9
Return on capital employed	%	16.2	15.7

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 703.6 to Rs 890.3, registering a gain of Rs 186.7 or around 26.5%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 13,824.8 (up 1.4%). Over the last one year it has moved down from 13,838.9 to 13,824.8, a loss of 14 points (down 0.1%).

Overall, the S&P BSE SENSEX is up 12.6% over the year.

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