Bharti Infratel is a telecom service provider giant in India. It is a large cap and a Nifty 50 company. Recent negativity in the telecom sector has not much affected the Bharti Infratel share price.
Bharti Infratel Share Price Graph
Being a relatively new company, compared to its peers, it has grown exceedingly well. Incorporated in 2006 as a subsidiary of Bharti Airtel, it is an integral part of the Bharti group. In 2008, Bharti Airtel has transferred its infrastructure of towers to Bharti Infratel Limited.
The company runs its business by providing towers and related infrastructure to telecom service providers in India. and earning lease money and/or subscription from its customers. Bharti Infratel owns 42% share of Indus, another giant in tower business in India. Bharti and Indus jointly supply tower and related infrastructures to telecom service providers in India. Besides Bharti Airtel, Bharti and Indus have three big players of Indian telecom industry as their main customers. They are Vodafone, Idea Cellular, and Bharti Hexacom.
Bharti Infratel together with Indus has a nationwide business, providing towers to 22 telecom circles in India. Bharti alone runs and operates more than 35000 towers in India. As per agreement in 2014 with Reliance Jio, Jio would provide telecom service using Bharti Infratel’s infrastructure of towers for its pan-India telecom service.
Reliance Jio’s aggressive marketing and pricing has affected the balance sheet of all telecom service providers in India except Bharti Infratel as it has earned revenue from Jio through its infrastructure of towers.
The subsidiaries of Bharti Infratel are Bharti Hexacom, Bharti Enterprise, Bharti Telemedia, Bharti Airtel services, Centum Learning.
Bharti Infratel share price is Rs 364.75 (as on 16.06.17, EOD) in BSE. As per the latest data, the consolidated basis P/E is 25.24 versus average industry PE of 26.6, EPS is Rs 14.85. Market cap is Rs 69,323 crores. The face value of a share is Rs 10. But recent sectoral negativity has not much affected the balance sheet. As per the latest data, the standalone basis EPS is Rs 14.62 and PE is 25.63.
The shares price of Bharti Infratel closed at Rs 265.25 on 22.10.18. on the National Stock Exchange. The present market cap is Rs 48811.16 crores. The earning per share or EPS over the trailing 12 months is Rs 13.70. The price over earning ration or P/E is 19.36. The Book Value per share is Rs 91.72. The price over Book Value ratio or P/BV is 2.89. The dividend yield is 5.28%. The 52 weeks high share price at the close is Rs 468.85 and 52 weeks low is Rs 242.45.
Now let us consider the quarterly result of the of this fiscal which ended on June 30 2018. The quarterly result shows that the EPS is Rs 3.45. The quarterly sales figure stands at Rs 1697 crores. The operating profit is Rs 765.60 crores. Other income stands at Rs 36.40 crores. The EBITDA is Rs 802.00 crores. And the net profit earned in this quarter is Rs 638.00 crores.
Let us have a deeper look at its fundamental strength. The return on assets or ROA is 33.91%. The return on equity or ROE is 14.69%. The return on capital employed or ROCE is 10.42%. The fixed asset turnover stands at 0.40. All the above data show the efficiency of the current management of Bharti Infratel limited. The data mentioned above scores way over its peers of the Indian companies operating in this sector.
The gross profit margin stands at 29.85%. Operating profit margin shows 47.68% growth. The net profit margin also grew by 37.66%. The peers in this sector performed poorly in comparison to the profit earned by Bharti Infratel. The average net profit by the peers in this group earned a profit of -3.59%, average operating profit margin stands at 19..% and the average net profit earned by its peers is -23.52%.
The financial strength in all the core areas is stated here. In terms of liquidity, the company ratios are – Quick ratio 0.59, Current ratio 0.61 and Cash ratio 0.01. These performance, though are far below the peer average. In terms of Solvency, the Debt to Equity ratio is 0.00 and in terms of coverage ratio, the cash flows to long-term ratio are 0.00. Bharti Infratel shows good performance in these two areas, that is solvency ratio and coverage ratio. Overall we can say though Bharti Infratel fundamental data show good performance over its peers, the financial strength is not that good when compared to its peers. All in all, we can have a mixed outlook from the fundamental data.
Bharti Infratel Ltd is a large-cap company operating in the telecom sector of India and providing infrastructure and related services to the telecom sector.
The company earns its revenue from its operation in the telecom infrastructure area. For the year ending 31 March 2018, Bharti Infratel Ltd. earned Rs 6618.00 crores from its infrastructure activities which contributed 100% of its total sales.
The audited data for the quarter ended on 30 June 2018 shows a consolidated sales of Rs 1697 crores which shows an increase of 1.45% from the sales data of the last quarter which was Rs 1672.80 crores and increased by 6.50% from the sales figure of the same quarter of the last fiscal which was reported Rs 1593.40 crores. The company reported a net profit after tax of Rs 341.40 crores in the quarter ended 30 June 2018.
The top management of the company has Mr Bharat Suman Raut, Mr Akhil Gupta, Mr D S Raut, Mr N Kumar, Mr Jitender Balakrishnan, Mr R P Singh, Mr R B Mittal, Ms Anita Kappor, Mr S Nayar, Mr Tan Yong Choo and Ms Leena Srivastava.
Bharti Infratel Ltd. has employed M/S Deloitte Haskins & Sells LLP as its auditor.
As per data of second quarter of this fiscal, the company has a total no of 1,849,608,246 shares outstanding.
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