(in Rs crores)

Parameters

MAR'10

MAR'11

MAR'12

MAR'13

Gross Sales

35,609.5

38,017.7

41,603.8

45,350.9

Net Sales

35,609.5

38,017.7

41,603.8

45,350.9

6.76%

9.43%

9.01%

-14.7

-7.2

2.3

30.0

35.0

23.3

16.0

-28.1

Growth Rate
EXPENDITURE:
Increase/Decrease in Stock
Raw Materials Consumed
Power & Fuel Cost
Employee Cost
Other Manufacturing Expenses
Administration Expenses
Selling and Distribution Expenses
Miscellaneous Expenses

0.10%

0.06%

0.04%

-0.06%

2,265.0

2,523.3

2,972.7

3,569.9

6.36%

6.64%

7.15%

7.87%

1,500.6

1,451.2

1,391.5

1,511.3

4.21%

3.82%

3.34%

3.33%

11,041.8

12,280.0

14,230.0

16,527.1

31.01%

32.30%

34.20%

36.44%

4,331.1

5,082.1

5,706.7

6,351.1

12.16%

13.37%

13.72%

14.00%

2,161.3

2,957.6

3,018.9

3,350.0

6.07%

7.78%

7.26%

7.39%

531.0

535.9

622.0

568.9

1.49%

1.41%

1.50%

1.25%

Total Expenditure

21,851.0

24,846.2

27,960.1

31,880.2

PBIDT (Excl OI)

13,758.5

13,171.5

13,643.7

13,470.7

377.3

490.0

624.7

1,463.1

Other Income
% PBIT

2.74%

3.72%

4.58%

10.86%

14,135.8

13,661.5

14,268.4

14,933.8

-568.0

324.1

1,396.2

1,652.3

14,703.8

13,337.4

12,872.2

13,281.5

Depreciation

4,004.5

4,611.6

5,916.0

6,826.7

% of sales

11.25%

12.13%

14.22%

15.05%

10,699.3

8,725.8

6,956.2

6,454.8

0.0

0.0

0.0

0.0

Operating Profit
Interest
PBDT

Profit Before Taxation & Exceptiona

Exceptional Income / Expenses
Profit Before Tax

10,699.3

8,725.8

6,956.2

6,454.8

Provision for Tax

1,273.1

1,008.9

1,226.2

1,358.5

Tax rate

11.90%

11.56%

17.63%

21.05%

9,426.2

7,716.9

5,730.0

5,096.3

PAT

MAR'14

MAR'15

MAR'16

MAR'17

MAR'18

MAR'19

49,918.5

54,946.1

60,480.1

66,571.5

73,276.4

80,656.5

49,918.5

54,946.1

60,480.1

66,571.5

73,276.4

80,656.5

10.07%

10.07%

10.07%

10.07%

10.07%

10.07%

1.0

2.3

2.3

2.3

2.3

2.3

1.2

9.5

9.5

9.5

9.5

9.5

0.00%

0.02%

0.02%

0.01%

0.01%

0.01%

4,169.7

4,395.7

4,838.4

5,325.7

5,862.1

6,452.5

8.35%

8.00%

8.00%

8.00%

8.00%

8.00%

1,648.1

1,923.1

2,116.8

2,330.0

2,564.7

2,823.0

3.30%

3.50%

3.50%

3.50%

3.50%

3.50%

17,208.7

18,681.7

20,563.2

22,634.3

24,914.0

27,423.2

34.47%

34.00%

34.00%

34.00%

34.00%

34.00%

6,764.7

7,692.5

8,467.2

9,320.0

10,258.7

11,291.9

13.55%

14.00%

14.00%

14.00%

14.00%

14.00%

2,906.1

3,846.2

4,233.6

4,660.0

5,129.3

5,646.0

5.82%

7.00%

7.00%

7.00%

7.00%

7.00%

920.2

817.0

899.3

989.8

1,089.5

1,199.3

1.84%

1.49%

1.49%

1.49%

1.49%

1.49%

33,619.7

37,367.9

41,130.3

45,271.6

49,830.1

54,847.6

16,298.8

17,578.2

19,349.8

21,299.9

23,446.3

25,808.9

853.4

1,406.3

1,741.5

2,130.0

2,579.1

3,097.1

5.24%

8.00%

9.00%

10.00%

11.00%

12.00%

17,152.2

18,984.5

21,091.3

23,429.9

26,025.4

28,906.0

1,336.4

1,336.4

1,336.4

1,336.4

1,336.4

1,336.4

15,815.8

17,648.1

19,754.9

22,093.5

24,689.0

27,569.6

7,231.3

8,241.9

9,072.0

10,651.4

11,724.2

12,098.5

14.49%

15.00%

15.00%

16.00%

16.00%

15.00%

8,584.5

9,406.2

10,682.9

11,442.0

12,964.8

15,471.1

-207.1

0.0

0.0

0.0

0.0

0.0

8,377.4

9,406.2

10,682.9

11,442.0

12,964.8

15,471.1

1,777.2

1,975.3

2,457.1

2,631.7

2,981.9

3,558.4

21.21%

21.00%

23.00%

23.00%

23.00%

23.00%

6,600.2

7,430.9

8,225.8

8,810.4

9,982.9

11,912.8

NOTE: All Assumptions

A total of 8 excel sheet

NOTE: All Assumptions are stated in the .doc file

total of 8 excel sheets have been used

Year
Equities and Liabilities
Share Capital
Share Warrants & Outstandings
Shareholder's Funds
Secured Loans
Unsecured Loans
Deferred Tax Assets / Liabilities
Other Long Term Liabilities
Long Term Provisions
Total Non-Current Liabilities
Trade Payables
Current Liabilities
Other Current Liabilities
Short Term Borrowings
Short Term Provisions
Total Current Liabilities
Total Liabilities
ASSETS
Gross Block
Less: Accumulated Depreciation
Net Block
Capital Work in Progress
Intangible assets under development
Non Current Investments
Long Term Loans & Advances
Other Non Current Assets
Total Non-Current Assets
Total Reserves
Current Assets Loans & Advances
Currents Investments
Inventories
Cash and Bank
Other Current Assets
Short Term Loans and Advances
Total Current Assets
Net Current Assets (Including Current Investments)
Total Current Assets Excluding Current Investments
Total Assets

Mar'10

Mar'11

Mar'12

Mar'13

Mar'14

1,898.80

1,898.80

1,898.80

1,898.80

1,998.70

36,737.20
39.4
4,999.50
3.3
0
0
5,042.20
7,784.40

44,111.60
17.1
7,451.60
527.6
2,513.20
100.2
10,609.70
4,959.80

49,429.60
2.9
8,230.90
836.7
2,518.40
140.5
11,729.40
4,512.10

54,146.20
2
9,838.80
1,150.30
3,170.80
149.4
14,311.30
5,137.20

66,728.00
1.4
7,270.30
947.5
3,939.40
209.5
12,368.10
6,266.30

4,500.40
0
5,353.10
17,637.90
59,417.30

8,609.70
2,764.40
6,861.10
23,195.00
77,916.30

8,200.00
5,895.60
8,287.40
26,895.10
88,054.10

10,603.40
3,139.00
546.1
19,425.70
87,883.20

10,645.40
1,251.00
945.3
19,108.00
98,204.10

44,212.50
16,187.50
28,025.00
1,594.70
0
11,153.70
0
0
40,773.40
34,652.30

61,437.40
20,736.70
40,700.70
1,432.00
5,047.20
11,705.10
7,081.20
305.9
66,272.10
41,934.20

66,906.80
26,466.00
40,440.80
923
3,543.50
11,804.10
8,481.70
1,087.00
66,280.10
47,237.70

76,206.10
33,023.50
43,182.60
1,030.80
0
27,119.10
8,935.80
1,411.10
81,679.40
51,963.30

79,574.30
39,696.10
39,878.20
1,244.20
0
34,034.80
14,518.00
1,790.10
91,465.30
64,492.80

4,619.60
27.2
816.7
66.4
11,009.00
18,643.90
1,006.00
14,024.30
59,417.30

107.9
34.4
133.2
1,026.70
8,880.10
11,644.20
-11,550.80
11,536.30
77,916.30

533.7
32.1
481.2
1,052.00
17,540.50
21,774.00
-5,121.10
21,240.30
88,054.10

1,080.00
2.1
362.7
1,098.90
1,413.30
6,203.80
-13,221.90
5,123.80
87,883.20

489.1
1.1
446
1,215.30
2,421.80
6,738.80
-12,369.20
6,249.70
98,204.10

NOTE: All Assumptions are stated in the .doc file

A total of 8 excel sheets have been used

(in Rupees Crores)

Year
Gross Block
Less: Accumulated Depreciation
Capital Expenditure

2010

2011

2012

2013

44,212.5
16,187.5

61,437.4
20,736.7
17,224.9

66,906.8
26,466.0
5,469.4

76,206.1
33,023.5
9,299.3

Rupees Crores)
2014

2015

2016

2017

2018

2019

79,574.3
39,696.1
3,368.2

86,081.7
34,650.1
6,507.4

93,121.2
38,200.9
7,039.5

100,576.4
42,900.8
7,455.2

107,591.2
46,590.4
7,014.8

116,001.8
50,225.1
8,410.6

NOTE: All Assumptions are stated in the .doc file

A total of 8 excel sheets have been used

Year
Gross block
% increase
Less : accumulated depreciation
% of gross block

2010
44,212.50
16,187.50
0.37

(In Rupees Crores)

2011
2012
61,437.40
66,906.80
0.39
0.09
20,736.70
26,466.00
0.34
0.40

2013
76,206.10
0.14
33,023.50
0.43

2014
79,574.30
0.04
39,696.10
0.50

2015
86,081.65
0.08
34,650.08
0.40

2016
93,121.16
0.08
38,200.91
0.41

2017
100,576.40
0.08
42,900.78
0.43

2018
107,591.23
0.07
46,590.37
0.43

2019
116,001.81
0.08
50,225.15
0.43

NOTE: All Assumptions are stated in the .doc file

A total of 8 excel sheets have been used

Year
Current Assets Loans & Advances
Currents Investments
% of Expenses

2010

2011

2012

0.00

0.00

0.00

4619.60

107.90

533.70

21%

0%

2%

27.20

34.40

32.10

% of Expenses

0%

0%

0%

Cash and Bank

816.70

133.20

481.20

Inventories

% of Sales turnover
Other Current Assets
% of Sales turnover
Short Term Loans and Advances

2%

0%

1%

66.40

1026.70

1052.00

0%

3%

3%

11009.00

8880.10

17540.50

% of Sales turnover

31%

23%

42%

Total Current Assets

16538.90

10182.30

19639.50

0.00

0.00

0.00

7784.40

4959.80

4512.10

22%

13%

11%

4500.40

8609.70

8200.00

% of COGS

13%

23%

20%

Short Term Borrowings

0.00

2764.40

5895.60

0%

7%

14%

5353.10

6861.10

8287.40

15%

18%

20%

Total Current Liabilities

17637.90

23195.00

26895.10

Working Capital

-1099.00

-13012.70

-7255.60

-11913.70

5757.10

Current Liabilities
Trade Payables
% of COGS
Other Current Liabilities

% of COGS
Short Term Provisions
% of COGS

Change in Working Capital

(in Rupees Crores)

2013

2014

2015

2016

2017

2018

2019

0.00

0.00

0.00

0.00

0.00

0.00

0.00

1080.00

489.10

671.27

738.86

813.25

895.14

985.28

3%

1%

2%

2%

2%

2%

2%

2.10

1.10

1.80

1.98

2.18

2.40

2.64

0%

0%

0%

0%

0%

0%

0%

362.70

446.00

490.92

540.36

594.79

654.69

720.63

1%

1%

1%

1%

1%

1%

1%

1098.90

1215.30

1337.70

1472.43

1620.73

1783.96

1963.64

2%

2%

2%

2%

2%

2%

2%

1413.30

2421.80

2665.72

2934.20

3229.72

3555.01

3913.06

3%

5%

5%

5%

5%

5%

5%

3957.00

4573.30

5167.41

5687.83

6260.67

6891.20

7585.24

0.00

0.00

0.00

0.00

0.00

0.00

0.00

5137.20

6266.30

6348.18

7136.42

7962.78

8624.80

9552.48

11%

13%

12%

12%

12%

12%

12%

10603.40

10645.40

11934.32

12999.84

14622.61

15846.00

17502.86

23%

21%

22%

21%

22%

22%

22%

3139.00

1251.00

1377.00

1515.68

1668.34

1836.37

2021.32

7%

3%

3%

3%

3%

3%

3%

546.10

945.30

1040.51

1145.30

1260.66

1387.63

1527.38

1%

2%

2%

2%

2%

2%

2%

19425.70

19108.00

20700.01

22797.25

25514.38

27694.80

30604.04

-15468.70

-14534.70

-15532.60

-17109.41

-19253.71

-20803.60

-23018.80

-8213.10

934.00

-997.90

-1576.82

-2144.30

-1549.88

-2215.21

NOTE: All Assumptions are stated in the .doc file

A total of 8 excel sheets have been used

Cost of Equity
Capital Asset pricing Model
Risk free rate
Market Rate of Return
Beta
Cost of Debt=
=> Interest Rate=
Weight of Equity
Weight of Debt

8.64%
16.0%
0.97
8%
30%
90.2%
9.8%

Cost of Equity (ke)

15.8%

=>
=>

Cost of Capital=
Cost of Capital=

Cost of equity* Weight of Equity +Cost of Debt*Weig

14.78%

NOTE: All Assumptions are stated in the .doc file

A total of 8 excel sheets have been used

Weight of Equity +Cost of Debt*Weight of Debt*(1-Interest Rate)

Year
Adjusted Net Profit
Interest(1-tax rate)
Depreciation
Capital Expenditure
Net Change in Working Capital
FCFF

2010

2011

2012

2013

2014

2015

9,426.2
-500.4
4,004.5
0.0
0.0

7,716.9
286.6
4,611.6
17,224.9
-11,913.7

5,730.0
1,150.1
5,916.0
5,469.4
5,757.1

5,096.3
1,304.6
6,826.7
9,299.3
-8,213.1

6,600.2
1,052.9
7,231.3
3,368.2
934.0

7,430.9
1,055.8
8,241.9
6,507.4
-997.9

12,930.3

7,303.9

Year
Discount Factor
DCF
Present Value
Perpetual growth rate
Terminal Value
Present Terminal Value

48,989.0
0.1
227,540.3
114,221.4

Enterprise Value
Cash
Debt

163,210.4
446.0
7,271.7

Equity Value

1,569.6 12,141.4 10,582.2 11,219.1

1

0.1
9,774.5

170,928.1

(in Rupees Crores)

2016

2018

2019

8,225.8 8,810.4
9,982.9
1,029.0 1,029.0
1,029.0
9,072.0 10,651.4 11,724.2
7,039.5 7,455.2
7,014.8
-1,576.8 -2,144.3 -1,549.9

11,912.8
1,029.0
12,098.5
8,410.6
-2,215.2

12,864.2 15,179.9 17,271.2

18,844.9

2017

9,764.7 10,038.8

9,951.2

9,459.8

NOTE: All Assumptions are stated in the .doc file

A total of 8 excel sheets have been used

d in the .doc file

Trading Comparables
Source: Bloomberg

Price/Sales
(in Rs crores)
Market Cap
368098.19

Company
BHARTI AIRTEL LTD

Firm Value
544971.19

2014
1.1x

Airtel Peers
RELIANCE COMMUNICATIONS LTD

1.2x

IDEA CELLULAR LTD

TATA COMMUNICATIONS LTD

2.0x
0.5x
1.2x
1.2x

Mean
Median
Mar'14(in Rs crores)
Airtel's Sales
Airtel's EBITDA
Airtel's EPS

49918.5
16298.8
17.03

Firm Value Based (in Rs crores)

Airtel's Sales
Airtel's EBITDA
Airtel's EPS

61,175
123,725
516,569

Shares outstanding (in Rs crores)

400

Valuation (in Rs crores)

Including Premium ( @30% ) (Airtel being a
premium brand)

222,813
289,657

Weightage
30%
40%
30%

FV/EBITDA

P/E

2014
6.6x

2014
45.7x

8.9x

23.6x

7.1x
6.8x
7.6x
7.1x

26.2x
99.8x
49.9x
26.2x

NOTE: All Assumptions are stated in the .doc file

A total of 8 excel sheets have been used

d in the .doc file