A STUDY ON FINACIAL

P E R F O R M A N C E O F B H A RT H I
A I RT E L L I M I T E D

Presented by
D. SASI KUMAR
P.M.MANESH
M.NAMACHIVAYAM
 OBJECTIVES

 To study the growth and financial performance of Bharthi

AirTel Limited.
 To know the liquidity position of the company

 To know the profitable aspects of BharthiAirTel Limited

 LIMITATIONS

The financial analysis of the company is based entirely on the Balance sheets
and Profit and Loss account and the data available from the company is valid only
with respect to the figures given.
The data is taken from the past six years financial statement and they are Non-
indication for the future.
This study is limited only to a period of six years.
The time value of money and inflation rate was not taken in to consideration.

Technical aspects of the production process are not considered for the analysis.
FRAME WORK OF ANALYSIS

 Ratio Analysis is used for analyzing the data

BUSINESS UNITS
 Mobile
 Telemedia
 Enterprises
 Digital TV
 BOARD OF DIRECTORS

CHAIRMAN & MD
Sunil Bharati Mital

CEO & JOINT MD

Manoj Kohli
ORGANIZATIONAL STRUCTURE
 TOP 6 SHARE HOLDERS

 Airtel Telecom limited

 Pastel Limited

 Indian continent Investment Limited

 Life Insurance corporation of India
 Europacific Growth Fund
 Fiedelity Management and Research and Funds
 ACHIEVEMENT
S
 Ranked 2nd among Top 500 profit earners-
Business Today 2008.
 Best ISP in the Broadband Survey - PC
World,2008
 Airtel conferred with "Retailer of the Year
Telecom Services" Award at the Asia Retail
Congress 2009
 SHARES

The equity shares of Bharti Airtel are currently

listed on National Stock Exchange of India
Limited (NSE) and The Stock Exchange, Mumbai,
(BSE)
The current market price of the shares is Rs.308
 COMPANY PROFILE
Name
BHARTI AIRTEL LIMITED.
Business Provides GSM mobile services, telemedia, Broadband services and
landline etc…
Established July 07, 1995, as a Public Limited Company
Operationa Provides GSM mobile services in all the 22 telecom circles in India,
l Network and was the first private operator to have an all India presence.

Provides telemedia services (fixed line) in 95 cities in India.

Customer 118,864,031 GSM mobile and 2,988,545 Telemedia Customers
Base (status as on Dec 31, 2009)
 Liquidity Ratio
0.90

0.81
0.80
0.74 0.74

0.70
0.66

0.60 0.58
0.55
0.52 0.52
current ratio
0.50
quick ratio
0.45
absolute ratio
0.42 0.41 0.42
0.40
0.36

0.30 0.28 0.28

0.23
0.20 0.18
0.16 0.16

0.10 0.09
0.07

0.00
2003 2004 2005 2006 2007 2008 2009
 Profitability Ratio
50.00%

43.31%
42.04% 41.84%
39.68% 40.23%
40.00%

33.21%

30.00% 28.29% 28.16%

26.62%
24.52% 24.79%
23.65% 22.99% 22.92%
22.73%

20.00% 18.72% 19.42% Gross profit ratio

16.86% Operating profit ratio
Net profit ratio

10.50%
10.00%

0.00%
2003 2004 2005 2006 2007 2008 2009
-2.25%

-10.00% -8.35%

-20.00%
 Earnings Per Share
Rs. 50.00

Rs. 44.67
Rs. 44.65

Rs. 40.00

Rs. 35.36
Rs. 35.31

Rs. 30.00

Rs. 22.50
Rs. 22.47 Basic
Diluted
Rs. 20.00

Rs. 12.04
Rs. 11.97

Rs. 10.00 Rs. 8.12

Rs. 7.96

Rs. 2.76
Rs. 2.76

Rs. -
2003
Rs. (1.10)
Rs. (1.10) 2004 2005 2006 2007 2008 2009

Rs. (10.00)
 RETURN ON EQUITY CAPITAL AND TOTAL CAPITAL EMPLOYED
35.00%

31.41%
30.87%
30.00%
27.87%
26.99%
25.96%
25.00% 24.53% 24.48%

22.57%

20.00% 19.50%
Retun on equity capital
Return on capital employed
15.87%
15.00%

11.05%
10.00%

5.55%
5.00%

0.00%
2004 2005 2006 2007 2008 2009
 Net Debt and Shareholders Equity
350,000,000

303,944,983
300,000,000

250,000,000

217,042,493

200,000,000
share holders equity

net debt
150,000,000
135,553,039

100,000,000 92,178,210
Rs. 84,022,000.00

61,064,879

50,000,000 45,916,200
Rs. 42,292,000.00 Rs. 41,738,000.00 Rs. 42,867,000.00
Rs. 41,171,000.00 Rs. 40,886,000.00

-
Rs. 2,004.00 Rs. 2,005.00 Rs. 2,006.00 Rs. 2,007.00 Rs. 2,008.00 Rs. 2,009.00
 SUGGESTIONS

The firm should take necessary steps increasing the sales to get the increase
in the capital employed which leads to the increase in the market value of the
organization.
The firm should work in reducing the cost of service.
The firm should repay the debentures about 50% which would lead to
increase in the net income of the firm.
The measure to earn competitive advantage is to be taken by the firm
Increase the income in other sectors also for instance like in DTH, Landline,
etc…