MOSL: BHARTI AIRTEL (Buy)-India business stages a comeback
BHARTI AIRTEL: India business stages a comeback
(BHARTI IN, Mkt Cap USD20.3b, CMP INR324, TP INR410, 26% Upside, Buy)
- The picture is far more sanguine: Bharti (BHARTI) bucked the competition-driven downtrend of the past several quarters with a strong fourth-quarter performance. Consol. EBITDA grew by a robust 7% QoQ to INR66b (5% beat), with the margin expanding 150bp QoQ (200bp beat) to 32.2%, led by a turnaround in the India wireless business margin (+410bp QoQ). However, adj. net loss widened to INR12b (our estimate: INR7.2b) from INR10.4b in the previous quarter. For FY19, consol. revenue/EBITDA/PAT declined by 2%/14%/63% YoY.
- India wireless biz makes a strong comeback…: One of the notable features of the 4QFY19 results was the strong turnaround in the India wireless business, where revenue increased 4% QoQ (3% beat). This can be attributed to (a) a lesser churn and an accelerated shift of low-ARPU subscribers to minimum recharge plans and (b) an improving incremental broadband market share. Accordingly, EBITDA grew by a stellar 27% QoQ to INR24.7b*. In USD terms, Africa revenue stood flat QoQ, but a sharp decline in opex facilitated healthy 6% QoQ EBITDA growth.
Bharti Airtel provides telecommunication systems and services to individuals and businesses in India with operations in 20 countries across Asia and Africa. In India, Co.'s product offerings include 2G, 3G and 4G wireless services, mobile commerce, fixed line services, high speed DSL broadband, IPTV, DTH, enterprise services including national & international long distance services to carriers. In the rest of the geographies, it offers 2G, 3G wireless services and mobile commerce. Co. had nearly 287 million customers across its operations at the end of Dec 2013.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
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