Bharti Airtel reported a disappointing numbers for the quarter ended june 2012.

Consolidate net profit fell by 24.23% quarter on quarter to Rs762.2 crore,while analysts on an average had expected it Rs1075 crore.The share touched a 52 week low of Rs 264. Bharti's net sales too grew at a meager 3.3% to Rs 19350.1 crore from Rs 18729.4 crore in the corresponding quarter last year. the numbers do look quite weak on the revenue line, EBITDA line and at the PAT line as well . this is weaker than what Vodafone or Idea had reported. idea and vodaphone grew revenues by 2.5% and 1.7 % respectively , while bhartis india revenues rose just 1.2%.The results had 3% revenue growth sequentially but the EBITDA is actually down 6%. So it looks like to get customers these guys have spent a fair bit on cost as well. Hence, margins have taken a hit. From Income statement the net income reduced to 7622 from 12152(rs mn) .Its 37% decline from previous year net income. And operating cash flow is increased 37% from previous year.From the previous numbers we can know that Bharti Airtel increased its operating cash flow. And Its investments also increased by 14%. That means a part of the cash from operating activities goes to investing activities. So the net income resulted downward. From the income statement Airtel increased its Fixed assets from previous quarter. It involves cash outflow. And current assets also increased it may be because of excessive inventory purchage. It involves also cash outflow. The liabilities also increased from previous quarter from 1036808 to 1137279 (rs mn). It tells us that it owed cash to other firms or other entitys. Total revenues for india and SA decreased from previous quarter to now bt revenues of Africa got increased to 57586 from 43784(rs mn). The performance of Airtel got increased in Africa but not in India and SA. Airtel had increased its cumulative investments in Africa but It had less cumulative investments in India and SA for this quarter than previous quarter.

The Bharti Airtel stock is down 2%. The numbers do look quite weak on the revenue line, EBITDA line and at the PAT line as well because After observing past financial reports of Airtel anyone was not expecting fantastic results anyway. But, this is weaker than what Vodafone or Idea had reported. The results had 3% revenue growth sequentially but the EBITDA is actually down 6%. So it looks like to get customers these guys have spent a fair bit on cost as well. Hence, margins have taken a hit. The other two disappointing elements is the African business where we have seen flat EBITDA and that is where a lot of people were expecting earnings growth to continue. So margins have actually gone down. Indian wireless business have seen revenue growth broadly in line with what Idea and Vodofone did at 2%, but EBITDA is down 4%. That looks to be the key reasons for disappointment.

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In future margins should improve. Firstly, in Africa it is still running pretty low at 26-27% margins. The aspiration or anticipation is that this should get up to 30% or higher and that should be starting to kick in now.In domestic business, There may not be significant improvement in the near-term.

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