Re: {LONGTERMINVESTORS} Bharti Airtel ...thread
RAJESH DESAI
Singtel--pfa
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CA. Rajesh Desai
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CA. Rajesh Desai
RAJESH DESAI
2012-09-03 17:14:15.714 GMT
By Djibril Saidou
Sept. 3 (Bloomberg) -- Regulatory agency issues fine for
irregularities in rates charged.
* Bharti Airtel unit fined 2.1b francs
* France Telecom unit fined 800.2m francs
* State-owned Sonitel fined 392.7m francs
* Emirates Telecommunications Corp. unit fined 254m francs
* State-owned SahelCom fined 74.7m francs
* Agency chairman Almoustapha Boubacar comments to reporters
HSBC overweight on Bharti Airtel
HSBC has reiterated its 'Overweight' rating on Bharti Airtel with an unchanged target price of Rs 345. HSBC continue to prefer Bharti in the Indian telcos space and the company may benefit from the improvement in voice realisations. The management suggested that in the previous period, the company was defending revenue share on the one hand and focusing on free cash flow on the other. However, the defensive mode resulted in a revenue market share (RMS) loss, and as such, earlier this year the company resorted to a portfolio approach.
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Manmohan Tandan
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CA. Rajesh Desai
RAJESH DESAI
Bharti Airtel moves HC against DoT's notice to stop intra-circle 3G roaming
In its petition, Bharti Airtel said the "decision of DoT is against the public interest as it adversely affects the interest of the customers and the subscribers who are benefiting from the 3G arrangements."
"The impugned decision of the DoT is violative of the fundamental right under Article 14 (equality before law) of the Constitution as it is arbitrary, has no rational basis, is illogical and is contrary to the contract between the parties," the petition said.
The plea sought quashing of the government's September 28, 2012 decision directing the service providers to stop providing intra-circle roaming (ICR) services and alleged that the decision is contrary to the interim orders passed by the Telecom Disputes Settlement and Appellate Tribunal ( TDSAT).
The Tribunal earlier had restrained the DoT from taking any coercive step against the firms while hearing a plea against DoT's similar communication issued in December 2011.
Claiming that Bharti Airtel has successfully bid at the 3G spectrum auction and has made significant investments, the plea said "The impugned decision will violate rights of the petitioner under Article 19 (1)(g) of the Constitution of India, the petitioner (Airtel) having successfully bid at the 3G spectrum auction and having made significant investments. This will also adversely affect level-playing field conditions."
"The DoT's decision is contrary to the national and public interest as the rights of millions of subscribers, enjoying the facility of 3G roaming due to the ICR arrangements will be affected," as per the petition.
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CA. Rajesh Desai
RAJESH DESAI
Bharti Airtel, the leading global telecommunications company, has invested $150 million in its African operations. The company has routed these funds through its Mauritius-based wholly-owned subsidiary for regular operations and financial costs in Airtel Africa. The entity had also offered a $154-million guarantee through a Netherlands-based joint venture firm.
Recently, the company unveiled an all new ‘Unlimited Internet’ offer for its 2G Prepaid mobile customers. This is the company’s effort to provide enhanced services to its existing as well as new customers across India.
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CA. Rajesh Desai
Rajesh Desai
Bharti Airtel - Sharekhan
Recommendation: Hold
Price target: Rs395
Current market price: Rs359
Good operational performance, Indian performance ahead of estimate
Result highlights
Good operational performance: Bharti Airtel (Bharti)'s Q2FY2014 operational performance was strong with a top line growth of 5.1% quarter on quarter (QoQ) as against our expectation of a 3.2% growth. The outperformance was also witnessed on the consolidated operating profit front, wherein the operating profit grew by 4.4% QoQ year on year (2.2% ahead of our estimate). The operating profit margin (OPM) came at 32% (largely in line with our estimate of 31.8%). The reported net profit for the quarter at Rs512 crore included a foreign exchange (forex) loss of Rs342 crore coupled with other exceptional loss of Rs82 crore. Adjusting the same, the net profit came at Rs809 crore.
Key management takeaway: The management sounded positive on the improving Indian business environment and exhibited confidence of improving tariffs. It also sounded positive on the data growth and the margin expansion momentum. On Africa, the management guided for a higher single-digit revenue growth with room for margin expansion.
Hold maintained; price target at Rs395: For the telecommunications (telecom) operators, the performance of the Q2FY2014 results vindicates our stance that the overall business environment continues to improve, with data being the next leg of growth for revenues as well as the margin. Thus continuing with our stance, we largely maintain our estimates for Bharti. Our earnings per share (EPS) for FY2014 and FY2015 are Rs11.2 and Rs15.3 respectively. We maintain our Hold rating with a price target of Rs395 (valued at 7.5x FY2015 EV/EBITDA).
CA. Rajesh Desai