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Credit Research Report - Bharti Airtel
Credit Research Report - Bharti Airtel
AGENDA
INDUSTRY OVERVIEW &
FINANCIAL ANALYSIS CAPITAL STRUCTURE
COMPETITIVE ANALYSIS
INVESTMENT
LIQUIDITY ANALYSIS INVESTMENT SUMMARY
RECOMMENDATION
COMPANY SNAPSHOT
Key Financials (in Million INR):
Timeline
Parameter Mar’18 Change
(YoY)
Dividend 13 80%
Highlights:
• Second largest telecom operator in India based on number of subscribers (300 million+)
• Total number of employees worldwide: 20,793
• Diversified portfolio which includes wireless services, homes services, digital TV and payments bank among
others
• Promoter and Promoter group has a holding of 67.14% as on Mar’18
CORPORATE
COMPANY SNAPSHOT BUSINESS DESCRIPTION
GOVERNANCE
AGENDA
INDUSTRY OVERVIEW &
FINANCIAL ANALYSIS CAPITAL STRUCTURE
COMPETITIVE ANALYSIS
INVESTMENT
LIQUIDITY ANALYSIS INVESTMENT SUMMARY
RECOMMENDATION
CAPITAL STRUCTURE
DEBT/EQUITY RATIO
Shareholding as on March 31, 2018
Insurance Others
2.1 2.1
Mutual Companies 2% 2
Funds and 6% 1.76 1.59
Units Trust of 1.59 1.6 Airtel
1.5 1.5
India 1.27 Vodafone Idea
7%
1 1.14
0.73
0.5
Financial Institutions, MAR '14 MAR '15 MAR '16 MAR '17 MAR '18
Banks and Foreign 783,483
Institutions LONG TERM DEBT/EQUITY RATIO
18%
Million INR
2.2
2.1 2.1
1. https://www.bloombergquint.com/business/this-is-how-sunil-mittal-
can-reduce-bharti-airtels-huge-debt-pile
CORPORATE
COMPANY SNAPSHOT BUSINESS DESCRIPTION
GOVERNANCE
AGENDA
INDUSTRY OVERVIEW &
FINANCIAL ANALYSIS CAPITAL STRUCTURE
COMPETITIVE ANALYSIS
INVESTMENT
LIQUIDITY ANALYSIS INVESTMENT SUMMARY
RECOMMENDATION
Business Description
The Board is chaired by the Chairman, who is responsible for the overall
strategy development, alliances, leadership development, international
opportunities, strengthening governance practices and enhancing brand
value and Airtel’s global image and reputation.
At one level below the Board, strategic co-ordination and direction is
provided by the Airtel Corporate Council (ACC). The ACC is headed by
the Chairman and comprises the Managing Directors & CEOs
The (Airtel Management Board ) AMB in India and South Asia, and Exco in
Africa provide support relating to the Company’s business strategy and
also derive operational synergies across business units.
Airtel’s governance structure thus helps in clearly determining the
responsibilities and entrusted powers of each of the business entities,
enabling them to fulfill those responsibilities in the most effective manner.
It also allows the Company to retain the organisational DNA, while
enabling effective delegation of authority and empowerment at all levels