Bharti Airtel - Operational performance in line, Retain ACCUMULATE: Emkay

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Bharti Airtel

Operational performance in line, Retain ACCUMULATE

ACCUMULATE

CMP: Rs427                                        Target Price: Rs464

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n     Q1FY12 revenue at Rs169.8bn up 4.4% qoq (in line with est.). EBITDA at Rs57bn, up 4.8% qoq. PAT at Rs12.1bn below est. of Rs15.2bn on account of higher tax and interest outgo

n     KPI’s on expected lines remained stable qoq, led by stabilization in price war. APRU at Rs190 down 2.1% qoq, MoU was flat at 449 while ARPM wad down 1.2% to Rs0.43

n     Cons. EBITDA margin improved 13bps qoq to 33.6% (lower than our est. of 34.2%). EBITDA margin from African operation stood at 26.7% v/s 26.4%  in Q4FY11

n     Cut EPS by 11.1% & 2.9% for FY12E/13E on account of higher interest & tax going forward. Valuations at 8.6/6.9 EV/EBIDTA for FY12E/13E. Retain ACCUMULATE with TP of Rs464