TELECOM SECTOR-AIRTEL

 DEEPNA
 NEETHA
 SHRUTHI
 POOJA
 JINCY
 NIJISHA
 Telecom Industry
 The Indian telecom market is characterized by low
penetration and high growth potential. The wireless
segment of the industry has been the major growth
driver.

 The total number of subscribers has increased from 54.1

mn in 2002-03 to 256.5 mn as at the end of October
2007. The wireless subscriber base increased to 217.1
mn,whereas the fixed line subscriber base dipped and
reached 39.4 mn as on October2007.
 5% in March 2003.The Industry is
witnessing rapid growth in subscriber base
but the Average Revenue Per User per
month (ARPU) is declining, therefore the
industry is playing on volumes
 The overall tele-density has increased to
more than 21% in October 2007 .
 AIRTEL
Bharti Group

Bharti Airtel

 Telecom giant Bharti Airtel is the flagship

company of Bharti Enterprises Airtel comes to
you from Bharti Airtel Limited, India’s largest
integrated and the first private telecom services
provider in all the 23 telecom circles

The Journey Towards Leadership…

The Journey Towards Leadership…
 1994 – 1995 : The Birth
 1995 – 1997 : Creating a new
Category…
 1997 – 2002 : Building the
foundation of a Power Brand
 2002 – 2004 : Driving Growth &
Leadership
 2005 – today : Towards Global
Admiration
 2006…. The Journey towards
Global Admiration
 13 Years of PASSION & SUCCESS
 New VISION for Airtel – Vision 2010
 Bharti Airtel - standing in the
world and India
 3rd LARGEST wireless operator in the
world
 LARGEST private INTEGRATED telecom
company in India
 LARGEST WIRELESS operator in India
 LARGEST private FIXED LINE operator in
India
 LARGEST TELECOM company listed on
Indian Stock Exchanges
 Cash flow strength

 Bharti has shown a strong growth in EBITDA and should

be able to finance most of its capex plan through
internal accruals.
 The company has no working capital requirement as it
is financed through prepaid customers balances and
vendor financing. Bharti is a pan India operator and we
expect its capex intensity will decline.
 Bharti has not tapped the capital markets since its IPO in
2002 and they do not expect it to raise any debt or
equity funding for its existingoperations.
 It might need to raise some short-term debt for
launching 3G services which it can repay, considering its
strong cash flow and negligible debt level.
 CAPITAL MARKET RATINGS
 As at March 31, 2010, Bharti Airtel Limited
has outstanding ratings with four
institutions, two of them domestic, viz.
CRISIL and ICRA, and two international,
viz. Fitch Ratings and S&P.
 CRISIL and ICRA have rated Airtel at the
top end of their rating scales, both for
short term (P1 + / A1 +) as well as long
term (AAA/ LAAA)
 Both Fitch Ratings and S&P have rated
Airtel at the level of the sovereign rating
of India (BBB-)
 Subsequent to March 31, 2010, and
pursuant to the closure of the Zain
transaction and related acquisition debt,
while CRISIL, ICRA and Fitch Ratings have
reaffirmed the above ratings, S&P has
moved the rating to BB+.
Market Penetration strategy
Hello tunes
 Airtel live
 Voice sms
 Missed call alerts
 M- bill
 24 hrs customer service
 GROUP 7 10
 SHARE CAPITAL
 During the year, the Company issued 919,734
(sub-divided) equity shares of Rs 5 each upon
exercise of stock options under ESOP Scheme
2005 of the Company.
 Further, the Company also allotted 65,385 (pre-
split) equity shares of Rs 10 each upon
conversion of Foreign Currency Convertible
Bonds (FCCBs) by their holders in May 2009.
 Due to these corporate actions, the
issued, subscribed and paid-up equity
share capital of the Company increased
from 3,796,479,592 (sub-divided) (March
31, 2009) to 3,797,530,096 equity shares
as of March 31,2010.
 ANALYSIS
 The Company meets its working capital
requirement by having suitable commercial
agreement with its creditors and sufficient
standby credit lines with banks and financial
institutions.
 It deploys a robust cash management system to
ensure timely availability of funds and its
deployment.
 The Company has been able to optimise finance
cost and generate funds for expansion by
minimising the amount of funds tied-up in the
current assets.
 As on March 31, 2010, the Company has cash
and bank balance of Rs 25,786 mn and
marketable securities of Rs 51,512 mn.
 The Company actively manages the short-term
liquidity to generate optimum returns by
investments made in debt and money market
instruments including liquid and income debt
fund schemes, fixed maturity plans and other
similar instruments.
 The Company foresees liquidity
requirements for funding the 3G spectrum
and BWA spectrum auction fees.
 The strength of the Companys balance
sheet has enabled the Company to
adequately tie up funding for expected 3G
and BWA liquidity requirements on
favorable terms.
 On March 30, 2010, the Company has also
announced acquisition of Zain Africa in a
USD 10.7 bn deal.
 The Company has tied up adequate
funding to cover the deal.
 The Company expects to maintain a
comfortable liquidity position post
payment of spectrum fees and closure of
the acquisition.
 Key Concerns
 Stiffer-than-expected competition in the wireless business
 Continual tariff cuts
 Huge out-payments to obtain 3G spectrum
 Lower-than-expected increase in long distance volumes
 Increasing competitors like Idea cellular, Reliance
Comm.
 Declining Average revenue per user (ARPU) driven by
lower IUC, lower mix of urban consumers in subscriber
additions and intensifying competition
 Slow down in telemedia, wireless and enterprise
segments.
THANK YOU !!!!