Bharati Infratel Ltd.

(Indus Towers)
General Overview
Indus Towers is an independently managed company offering passive infrastructure services to
all telecom operators and other wireless services providers such as broadband service
providers. Incorporated in November 2007, Indus Towers Limited has been promoted under a
joint venture between entities of Bharti Group including Bharti Infratel Limited (rendering
telecom and tower infrastructure services in India under the brand name Airtel and Bharti
Infratel Limited respectively) and Vodafone Idea Limited (rendering telecom services under the
brand name Vodafone and Idea) to render passive infrastructure services to telecom service
providers. With 122,730 towers in 15 circles across the country, Indus has the widest coverage
in India and has already achieved 288,013 tenancies, a first in the telecom tower industry
globally. Indus Towers was incorporated with an objective to provide shared telecom
infrastructure to telecom operators on a non-discriminatory basis.
Shareholding Pattern

Management
Akhil Gupta Chairman
Rajan Bharti Mittal Non Executive Director
Jitender Balakrishnan Independent Director
N Kumar Independent Director
Anita Kapur Independent Director
Strengths
1. Promoters increasing shareholding QoQ
2. Promoter holding increased more than 2% QoQ
3. New 52 Week High
4. Good quarterly growth in the recent results
5. Effectively using its capital to generate profit - RoCE improving in last 2 years
6. Effectively using Shareholders fund - Return on equity (ROE) improving since last 2 year
7. Efficient in managing Assets to generate Profits - ROA improving since last 2 year
8. Company with Low Debt
9. Increasing profits every quarter for the past 3 quarters
10.Increasing Revenue every quarter for the past 2 quarters
11.Company able to generate Net Cash - Improving Net Cash Flow for last 2 years
12.Annual Net Profits improving for last 2 years
13.Strong Momentum: Price above short, medium and long term moving averages
Weaknesses
1. MFs decreased their shareholding last quarter
2. Poor cash generated from core business - Declining Cash Flow from Operations for last 2
years
3. Book Value Per Share deteriorating for last 2 years
4. Companies with High Promoter Pledge
Threats
The steep rise in diesel prices in the current quarter can increase network operating expenses
of telecom companies by 7-8% but will cause less than 1% change in overall earnings, telecom
sector analysts have estimated. “Diesel costs contribute roughly 8% to telecom companies’
operating expenses for running towers, generators etc….so, these can go up proportionately,
but EBITDA (earnings before interest, tax, depreciation and amortization) will not see any
dramatic change.

Revenue
Company’s revenue rose 6% on annual basis and 5% sequentially to Rs 6,736 crore.
Consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) grew 10%
on-year to Rs 3,608 crore.