4QFY2012 Result Update | Telecom

May 2, 2012

Bharti Airtel
Performance highlights
(` cr) Net sales EBITDA EBITDA margin (%) PAT 4QFY12 18,739 6,233 33.3 1,008 3QFY12 18,477 5,958 32.2 1,017 % chg (qoq) 1.4 4.6 101bp (0.9) 4QFY11 16,265 5,444 33.5 1,401 % chg (yoy) 15.2 14.5 (21)bp (28.1)

NEUTRAL
CMP Target Price
Investment Period
Stock Info Sector Market Cap (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code Telecom 120,745 0.8 445/289 488,554 5 17,302 5,239 [Link] [Link]

`318 -

Source: Company, Angel Research

Bharti Airtel (Bharti) reported a mixed performance for 4QFY2012. During the quarter, the company reported above-expectation operating margin, while its profitability was hit due to higher-than-expected forex losses and interest expenditure. The company continued to maintain its leadership position with an increasing subscriber base. However, regulatory uncertainty remains an overhang on the stock price, as the telecom industry is currently going through various operational and policy uncertainties. We remain Neutral on the stock. Result highlights: For 4QFY2012, Bhartis consolidated revenue stood at `18,739cr, up 1.4% qoq. Revenue from mobile services for India came in at `10,510cr, up 3.3% qoq on the back of 5.1% qoq growth in overall network traffic and a 2.8% qoq increase in minutes of usage (MOU) to 431min. Zain Africas revenue stood at `5,308cr, down 0.9% qoq due to MOU as well as ARPU declining sequentially by 2.1% and ~4.1% to 122min and US$6.8/month, respectively. Consolidated EBITDA margin of the company grew by 101bp qoq to 33.3%. PAT came in at `1,006cr, down 0.5% qoq, negatively impacted by higher interest cost of `1,057cr in 4QFY2012 (due to forex fluctuations) vs. `788cr in 3QFY2012 and higher tax rates. Outlook and valuation: Bharti is on its way to turnaround its Africa business by bringing down its network operating expenditure by outsourcing various network-related developments and has been consistently adding 2.0mn+ subscribers per quarter in Africa. In 4QFY2012, due to a nine-day strike in Nigeria, KPIs of Africa business witnessed a decline. Despite this, the company managed to increase the EBITDA margin of its Africa business by 114bp qoq. We expect the combination of stable KPIs and cost efficiencies to drive EBITDA margin of Africa business to 27.0% in FY2013. We expect Bhartis Indian and African mobile subscriber base to post a CAGR of 6.3% and 13.1%, respectively, over FY2012-14E. However, key downside risks such as uncertainty in regulatory outcome, pricing scenario in Africa operations and delay in return on investments made in 3G launches, still loom. We maintain our Neutral rating on the stock. Key financials (Consolidated, IFRS)
Y/E March (` cr) Net sales % chg Net profit % chg EBITDA margin (%) EPS (`) P/E (x) P/BV (x) RoE (%) RoCE (%) EV/Sales (x) EV/EBITDA (x)
Source: Company, Angel Research

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 68.5 8.2 16.9 6.4

Abs. (%) Sensex Bharti Airtel

3m (0.7)

1yr (8.9)

3yr 51.7 (15.1)

(17.6) (17.2)

FY2010 41,847 13.2 9,108 5.7 40.3 24.0 13.2 2.9 21.6 17.6 2.9 7.3

FY2011 59,467 42.1 6,035 (33.7) 33.7 15.9 20.0 2.5 12.4 8.2 3.0 9.0

FY2012E 71,475 20.2 4,261 (29.4) 33.2 11.2 28.3 2.4 8.4 8.1 2.6 7.8

FY2013E 80,961 13.3 6,530 53.3 33.5 17.2 18.5 2.1 11.5 10.8 2.2 6.5

FY2014E 86,705 7.1 7,893 20.9 34.0 20.8 15.3 1.9 12.3 12.4 1.9 5.5

Ankita Somani
022-39357800 Ext: 6819 [Link]@[Link]

Please refer to important disclosures at the end of this report

Bharti Airtel | 4QFY2012 Result Update

Exhibit 1: 4QFY2012 Financial performance (Consolidated, IFRS)

(` cr) Net revenue Operating expenditure EBITDA Depreciation & amortization EBIT Interest charges Non operating expenditure Other income PBT Income tax PAT Share in earnings of associate Minority Interest Adj. PAT EPS (`) EBITDA margin (%) EBIT margin (%) PAT margin (%)
Source: Company, Angel Research

4QFY12 18,739 12,506 6,233 3,468 2,765 1,057 1,707 698 1,010 2 1,008 2.6 33.3 14.8 5.4

3QFY12 18,477 12,518 5,958 3,585 2,374 788 1,586 559 1,028 11 1,017 2.7 32.2 12.8 5.5

% chg (qoq) 1.4 (0.1) 4.6 (3.2) 16.5 34.2 7.6 24.9 (1.7) (80.6) (0.9) (0.5) 101bp 191bp (13)bp

4QFY11 16,265 10,821 5,444 2,970 2,475 684 39 1,830 499 1,331 (70) 1,401 3.7 33.5 15.2 8.6

% chg (yoy) 15.2 15.6 14.5 16.8 11.7 54.6 (6.7) 39.8 (24.1) (103.0) (28.1) (28.2) (21)bp (46)bp (321)bp

FY2012 71,475 47,762 23,712 13,368 10,344 3,819 6,526 2,260 4,265 (6) (1) 4,261 11.2 33.2 14.5 6.0

FY2011 59,467 39,432 20,035 10,206 9,829 2,182 111 129 7,666 1,778 5,887 (148) 6,035 15.9 33.7 16.5 10.1

% chg (yoy) 20.2 21.1 18.4 31.0 5.2 75.0 (14.9) 27.1 (27.5) (99.1) (29.4) (29.4) (52)bp (206)bp (416)bp

Exhibit 2: Actual vs. Angel estimates

(` cr) Net sales EBITDA margin (%) PAT
Source: Company, Angel Research

Actual 18,739 33.3 1,008

Estimate 18,973 31.8 1,090

% Var. (1.2) 144bp (7.6)

Healthy operating performance

For 4QFY2012, Bharti reported revenue growth of 1.4% qoq, with consolidated revenue coming in at `18,739.

Exhibit 3: Revenue break-up (Business segment wise)

Business segment (` cr) Mobile services India & South Asia Mobile services Africa Telemedia services Enterprise services Passive infrastructure services Others Eliminations Net revenue
Source: Company, Angel Research

4QFY12 3QFY12 % chg (qoq) 4QFY11 % chg (yoy) 10,510 5,308 916 1,121 2,418 430 1,974 18,739 10,176 5,358 913 1,188 2,439 399 1,997 18,477 3.3 (0.9) 0.3 (5.7) (0.9) 7.8 (1.2) 1.4 9,495 4,182 918 1,018 2,201 332 1,879 16,265 10.7 26.9 (0.2) 10.1 9.9 29.8 5.0 15.1

May 2, 2012

Bharti Airtel | 4QFY2012 Result Update

Mobile business India and South Asia: Revenue of the mobile business India and South Asia grew by 3.3% qoq to `10,510cr on the back of 2.8% qoq growth in MOU to 431. However, ARPM declined by 1.7% qoq to `0.44/min. Revenue of mobile India and South Asia business was positively impacted by the slight increase in value-added services (VAS) share to 14.4% in 4QFY2012 from 14.3% in 3QFY2012. All this led to 1.1% qoq growth in ARPU to `189/month. In 4QFY2012, the company added 5.63mn subscribers in this segment, taking its total subscriber base to 181.3mn. Bharti reported 5.1% qoq growth in overall network traffic, after two quarters of subdued traffic growth. Traffic growth was led by pricing intervention and strong net subscriber additions during the quarter.

Exhibit 4: Trend in MOU (qoq)

500 480 460 4.9 2.7 (0.1) (0.8) (1.1) (1.0) 2.8 6 4 2

Exhibit 5: Trend in VAS share (qoq)

16 15 14 15.0 13.8 12.7 11.8 11.6 14.6 14.5 14.3 14.4

(mins)

(%)

440 420 400 380 (5.5)

(%)

0 (2)

13 12 11 10 9

(4.9)

(4) (6) (8)

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

MoU

qoq growth

4QFY12

VAS share

Source: Company, Angel Research

Source: Company, Angel Research

Exhibit 6: Trend in ARPM (qoq)

0.6 (0.9) (0.6) (2.4) (0.8) 0.9 3.2 (1.7) 0 4

Exhibit 7: Trend in ARPU (qoq)

250 2.2 1.1 (3.8) (4) (4.6) (6.3) 150 (8) 4

(`/min)

(9.1)

(8) (12)

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

ARPM

qoq growth

ARPU

qoq growth

Source: Company, Angel Research

Source: Company, Angel Research

Mobile Africa business: For 4QFY2012, Zain Africas revenue stood at `5,308cr, down 0.9% qoq, on the back of a 2.1% and 4.1% qoq decline in MOU and ARPM to 122min and US$6.8/month, respectively. Revenue from Africa was negatively impacted due to the nine-day national strike in Nigeria. The company witnessed addition of 2.2mn subscribers, taking its total subscriber base to 53.1mn.

May 2, 2012

4QFY12

0.2

(%)

0.4

(4)

(2.0)

(%)

(4.6)

(`/month)

200

(1.6)

(2.5)

(1.8)

4QFY12

Bharti Airtel | 4QFY2012 Result Update

Exhibit 8: Operating metrics for Zain Africa

4QFY12 ARPM (US/min) MOU (min) ARPU (US$/month) Subscriber base (mn)
Source: Company, Angel Research

3QFY12 5.7 125 7.1 50.9

% chg qoq (2.1) (2.1) (4.1) 4.3

4QFY11 6.2 115 7.2 44.2

% chg yoy (9.6) 5.6 (4.6) 20.2

5.6 122 6.8 53.1

Telemedia services: Revenue of the telemedia business remained almost flat qoq at `916cr, as this is seasonally a weak quarter for the telemedia business. Also, the total subscriber base of Bharti in this business again witnessed a decline of 47, taking its total subscriber base to 3,270. ARPU of this business increased by 1.9% qoq to `933/month in 4QFY2012 from `916/month in 3QFY2012.

Exhibit 9: Telemedia Subscriber base and ARPU trend

3,500 3,000 937 954 961 934 934 952 955 916 800 933 1000

(in 000's)

2,500 2,000 1,500

600

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

Telemedia subscribers (in 000's)

ARPU

Source: Company, Angel Research

Enterprise services: Revenue of the enterprise services segment declined by 5.7% qoq to `1,121cr in 4QFY2012. Passive infrastructure services: In the passive infrastructure services segment also revenue declined by 0.9% qoq to `2,418cr. Tenancy ratio improved to 1.82 in 4QFY2012 from 1.81 in 3QFY2012.

May 2, 2012

4QFY12

(`)

Bharti Airtel | 4QFY2012 Result Update

Exhibit 10: Trend in passive infrastructure business (qoq)

1,200 1.78 900 600 300 0 1.65 1.68 1.73 1.80 1.83 1.87 1.89 1.91 1.94 1.82 1.6 1.4 1.2 1.0 2.0 1.8

No. of towers (in 00's)

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

Bharti Infratel (BTIL)

Indus

BTIL tenancy

Indus tenancy

Source: Company, Angel Research

Margins enhance
During the quarter, EBITDA margin of Bhartis Africa business increased by 114bp qoq to 27.8%. EBITDA margin of mobile India and South Asia business also grew by 15bp qoq to 34.0%. EBITDA margin of all other business segments such as telemedia services and passive infrastructure services increased by 218bp and 130bp qoq to 41.0% and 38.6%, respectively. However, EBITDA margin of enterprise services business declined by 235bp qoq to 14.6%. All this led to a 101bp qoq increase in Bhartis consolidated EBITDA margin to 33.3%.

Exhibit 11: Segment-wise EBITDA margin trend (qoq)

50 40 44.6 38.6 34.9 45.2 37.0 33.3 25.7 21.5 21.5 45.5 37.7 44.2 37.5 33.7 38.8 37.3 33.8 41.0 38.6 34.0

(%)

30 20 10

34.2 22.1

16.9

4QFY12

14.6

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

Mobile services-India & South Asia Enterprise services

Telemedia services Passive infrastructure services

Source: Company, Angel Research

May 2, 2012

Tenancy (x)

1.77

1.79

1.81

Bharti Airtel | 4QFY2012 Result Update

Exhibit 12: Opex break-up (qoq)

100 80 60 31.6 33.5 33.6 33.7 32.2 33.3

19.9
5.6

17.1
5.7

16.6
5.3

16.2 8.4 22.7 13.9 2QFY12

Employee cost
5.2

17.7 8.4 22.8 14.2 3QFY12

S,G&A cost
4.7

16.9 8.6 22.6 13.9 4QFY12

EBITDA margin
4.7

(%)
40 20 0

8.6 21.4 12.9 3QFY11

8.5 21.9 13.3 4QFY11

8.8 22.5 13.2 1QFY12

License fee

Access charges

Network costs

Source: Company, Angel Research

During the quarter, Bhartis consolidated net profit came in at `1,008cr, down 0.9% qoq, negatively impacted by higher interest cost of `1,057cr in 4QFY2012 (due to forex fluctuations) vs. `788cr in 3QFY2012 and higher tax rates.

Outlook and valuation

Bharti is on its way to turnaround its Africa business by bringing down its network operating expenditure by outsourcing various network-related developments. The company has been consistently adding above 2.0mn subscribers per quarter in its Africa business. In 4QFY2012, due to the nine-day strike in Nigeria (accounts for ~30% of African revenues), KPIs of Africa business witnessed a decline. Despite this, the company managed to increase EBITDA margin of Africa business by 114bp qoq to 27.8%. KPIs are expected to remain stable going ahead. Thus, we expect the combination of stable KPIs and cost efficiencies to drive EBITDA margin of the Africa business to 27.0% in FY2013 from 26.8% in FY2012 and 25.3% in FY2011. On the domestic business front, the company undertook price hikes of 20% for on-net prepaid calls for all its 22 circles in 2QFY2012. This gradually pushed ARPM to `0.45/min in 3QFY2012 from `0.43/min in 2QFY2012. But again in 4QFY2012, ARPM declined by 1.7% qoq to `0.44/min due to the companys intent to increase subscriber market share. We expect Bhartis Indian and African mobile subscriber base to post a CAGR of 6.3% and 13.1% over FY201214E to 204.7mn and 67.9mn subscribers, respectively. In addition, we expect VAS share to inch up due to surging demand for non-SMS data services to further comfort the companys ARPM. The strong cash flow generation on account of 1) the expected improvement in operating profitability due to price increases in the domestic market and cost-efficiency measures in Africa business and 2) lower capex needs of ~US$3bn annually in future are expected to help the companys debt repayment abilities. However, key downside risks such as 1) uncertainty in regulatory outcome; 2) pricing scenario in Africa operations; and 3) delay in return on investments made in 3G launches, still loom. We continue to remain Neutral on the stock.

May 2, 2012

Bharti Airtel | 4QFY2012 Result Update

Exhibit 13: One-year forward EV/EBITDA (x)

525,000 450,000 375,000

EV (`cr)

300,000 225,000 150,000 75,000 0

Dec-07

Dec-08

Dec-09

Dec-10

Dec-11
5x

Apr-07

Apr-08

Apr-09

Apr-10

Apr-11

Aug-07

Aug-08

Aug-09

Aug-10

EV
Source: Company, Angel Research

17x

14x

11x

8x

Exhibit 14: Change in estimates

FY2012 Parameter (` cr) Net revenue EBITDA PBT Tax PAT Earlier estimates 80,967 26,829 9,644 2,893 6,791 Revised estimates 80,961 27,157 9,741 3,215 6,530 Variation (%) (0.0) 1.2 1.0 11.1 (3.8) Earlier estimates 88,684 29,631 11,896 3,569 8,367 FY2013 Revised estimates 86,705 29,496 11,775 3,886 7,893 Variation (%) (2.2) (0.5) (1.0) 8.9 (5.7)

Source: Company, Angel Research

Exhibit 15: Recommendation summary

Company Bharti Airtel Idea Cellular RCom Reco. Neutral Neutral Neutral CMP (`) 318 80 76 Tgt. price (`) Upside (%) FY2014E P/BV (x) 1.9 1.7 0.4 FY2014E P/E (x) 15.3 17.0 11.4 FY2011-14E EPS CAGR (%) 9.4 20.3 1.1 FY2014E RoCE (%) 12.4 11.8 3.5 FY2014E RoE (%) 12.3 10.0 3.2

Source: Company, Angel Research

May 2, 2012

Aug-11

Apr-12

Bharti Airtel | 4QFY2012 Result Update

Profit and Loss account (Consolidated, IFRS)

Y/E March (` cr) Net sales Roaming and access charges % of net sales Network operating exp. % of net sales License fee % of net sales Other expenses Total expenditure % of net sales EBITDA % of net sales Dep. and amortization Non operating expenses EBIT Interest charges Other income, net Profit before tax Provision for tax % of PBT PAT Share in earnings of associate Minority interest Adj. PAT EPS (`) FY2010 41,847 4,481 10.7 8,912 21.3 4,088 9.8 7,513 24,993 59.7 16,854 40.3 6,284 (18) 10,589 18 70 10,640 1,345 12.6 9,295 187 9,108 24.0 FY2011 59,467 7,499 12.6 12,993 21.8 5,166 8.7 13,774 39,432 66.3 20,035 33.7 10,206 111 9,719 2,182 129 7,666 1,778 23.2 5,887 (148) 6,035 15.9 FY2012E 71,475 9,869 13.8 16,180 22.6 6,112 8.6 15,602 47,762 66.8 23,712 33.2 13,368 10,344 3,819 6,526 2,260 34.6 4,265 (6) (1) 4,261 11.2 FY2013E 80,961 11,539 14.3 17,811 22.0 6,614 8.2 17,839 53,804 66.5 27,157 33.5 14,087 13,070 3,329 9,741 3,215 33.0 6,526 (4) 6,530 17.2 FY2014E 86,705 12,511 14.4 19,165 22.1 6,883 7.9 18,650 57,210 66.0 29,496 34.0 14,740 14,756 2,981 11,775 3,886 33.0 7,889 (4) 7,893 20.8

May 2, 2012

Bharti Airtel | 4QFY2012 Result Update

Balance sheet (Consolidated, IFRS)

Y/E March (` cr) Liabilities Share capital Reserves and surplus Tot. shareholders funds Minority interest Secured loans Unsecured loans Total debt Other liabilities Total liabilities Assets Gross block Acc. depreciation Net block Goodwill Oth. non-current assets Investments Inventories Sundry debtors Cash and equivalents Other current asst Total current assets Less: - current liab. Less:- provisions Net current assets Net deferred tax Miscellaneous exp. Total assets 69,725 21,462 48,263 5,989 1,825 5,236 48 3,571 2,532 2,381 8,532 10,841 41 (2,350) 1,249 60,212 1,899 40,295 42,194 2,529 8,147 2,042 10,190 5,300 60,212 1,899 46,868 48,767 2,856 53,234 8,437 61,671 4,665 117,959 96,810 31,668 65,142 63,732 1,918 622 214 5,493 958 3,921 10,585 28,430 118 (17,962) 4,506 117,959 1,899 48,713 50,611 2,770 49,715 19,308 69,023 5,078 127,482 112,529 45,036 67,493 66,089 3,543 1,813 131 6,374 2,030 4,461 12,995 29,450 129 (16,584) 5,128 127,482 122,529 59,123 63,406 66,089 3,155 1,315 130 7,542 1,865 5,461 14,997 35,378 153 (20,534) 7,767 121,198 131,529 73,863 57,666 66,089 3,606 1,315 130 8,077 5,228 6,661 20,096 37,617 230 (17,752) 8,422 119,347 1,899 54,799 56,697 2,770 42,317 15,414 57,731 4,000 121,198 1,899 62,248 64,147 2,770 35,500 12,931 48,431 4,000 119,347 FY2010 FY2011 FY2012E FY2013E FY2014E

May 2, 2012

Bharti Airtel | 4QFY2012 Result Update

Cash flow statement (Consolidated, IFRS)

Y/E March (` cr) Pretax profit from operations Depreciation Expenses (deferred)/written off Pre tax cash from operations Other income/prior period ad Net cash from operations Tax Cash profits (Inc)/Dec in Current assets Current liabilities Net trade working capital Cash flow from oper. actv. (Inc)/Dec in fixed assets (Inc)/Dec in intangibles (Inc)/Dec in investments (Inc)/Dec in net dfr. tax asset (Inc)/Dec in minority interest (Inc)/Dec in oth. non-curr. ast. Cash flow from investing actv. Inc/(Dec) in debt Inc/(Dec) in equity/premium Others Dividends Cash flow from financing actv. Cash generated/(utilized) Cash at start of the year Cash at end of the year 3,501 (4,352) (851) 14,733 (13,633) (1,953) (1,431) (1,249) 1,458 (801) (17,608) (1,690) 2,944 3,484 444 4,293 1,418 1,115 2,532 (3,628) 17,666 14,038 30,131 (27,085) (57,743) 4,614 (3,257) 328 (94) (83,237) 51,481 1,130 (635) 444 51,532 (1,575) 2,532 958 (1,337) 1,032 (305) 17,328 (15,719) (2,357) (1,191) (622) (87) (1,631) (21,606) 7,352 (1,970) 413 444 5,351 1,072 958 2,030 (2,167) 5,951 3,784 24,398 (10,000) 499 (2,639) 392 (11,748) (11,293) (1,078) 444 (12,815) (165) 2,030 1,865 (1,735) 2,317 581 23,211 (9,000) (656) (447) (10,103) (9,300) 444 (9,744) 3,363 1,865 5,228 FY2010 10,571 6,284 16,854 70 16,924 (1,345) 15,584 FY2011 7,536 10,206 17,742 129 17,872 (1,778) 16,093 FY2012E 6,526 13,368 19,894 19,894 (2,260) 17,633 FY2013E 9,741 14,087 23,828 23,828 (3,215) 20,614 FY2014E 11,775 14,740 26,515 26,515 (3,886) 22,629

May 2, 2012

10

Bharti Airtel | 4QFY2012 Result Update

Key ratios
Y/E March Valuation ratio (x) P/E (on FDEPS) P/CEPS P/BVPS Dividend yield EV/Sales EV/EBITDA EV/Total assets Per share data (`) EPS Cash EPS Dividend Book value DuPont analysis Tax retention ratio (PAT/PBT) Cost of debt (PBT/EBIT) EBIT margin (EBIT/Sales) Asset turnover ratio (Sales/Assets) Leverage ratio (Assets/Equity) Operating ROE Return ratios (%) RoCE (pre-tax) Angel RoIC RoE Turnover ratios (x) Asset turnover (fixed assets) Receivables days Payable days 0.8 28 158 0.7 34 263 0.6 33 225 0.7 34 240 0.7 34 240 17.6 22.8 21.6 8.2 18.5 12.4 8.1 18.0 8.4 10.8 25.2 11.5 12.4 31.6 12.3 0.9 1.0 0.3 0.7 1.4 21.6 0.8 0.8 0.2 0.5 2.4 12.4 0.7 0.6 0.1 0.6 2.5 8.4 0.7 0.7 0.2 0.7 2.1 11.5 0.7 0.8 0.2 0.7 1.9 12.3 24.0 40.6 1.0 111.2 15.9 42.8 1.0 128.5 11.2 46.4 1.0 133.3 17.2 54.3 1.0 149.3 20.8 59.6 1.0 169.0 13.2 7.8 2.9 0.3 2.9 7.3 2.0 20.0 7.4 2.5 0.3 3.0 9.0 1.5 28.3 6.8 2.4 0.3 2.6 7.8 1.5 18.5 5.9 2.1 0.3 2.2 6.5 1.4 15.3 5.3 1.9 0.3 1.9 5.5 1.4 FY2010 FY2011 FY2012E FY2013E FY2014E

May 2, 2012

11

Bharti Airtel | 4QFY2012 Result Update

Research Team Tel: 022 - 3935 7800

E-mail: research@[Link]

Website: [Link]

DISCLAIMER
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment. Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals. The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced, redistributed or passed on, directly or indirectly. Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past. Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in connection with the use of this information. Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement 1. Analyst ownership of the stock 2. Angel and its Group companies ownership of the stock 3. Angel and its Group companies' Directors ownership of the stock 4. Broking relationship with company covered

Bharti Airtel No No No No

Note: We have not considered any Exposure below `1 lakh for Angel, its Group companies and Directors

Ratings (Returns):

Buy (> 15%) Reduce (-5% to 15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

May 2, 2012

12