Comparison Result

BHARTI AIRTEL
Bharti Airtel is the largest mobile telephony operator in the GSM space with 24% share of the Indian wireless
market (as at the end of June 2009). The company, apart from being the largest player in the mobile segment with
subscribers in all the 23-telecom circles of the country, also provides varied services like fixed line, broadband and
retail internet access. Bharti's network spans over 420,000 non-census towns and villages in India. During the
period FY04 to FY09, the company grew its sales and profits at compounded annual rates of 65% and 83%
respectively.

TATA COMM.
Tata Communications (erstwhile VSNL) is the largest and incumbent international long distance (ILD) telephony
services operator in the country. Being the pioneer of Internet services in the country, VSNL provides international
telecommunication services, operates a network of earth stations, switches, submarine cable systems and value
added service nodes to provide international telephony, telex and telegraph and Internet services. The company
also operates DLD (domestic long distance) and broadband services in the country.

EQUITY SHARE DATA

BHARTI AIRTEL TATA COMM. BHARTI AIRTEL/
31/3/2009 31/3/2009 TATA COMM.

High Rs 980 585 167.5%

Low Rs 483 320 150.9%

Sales per share Rs 196.8 349.6 56.3%

Earnings per share Rs 41.4 11.1 373.5%

Cash flow per share Rs 67.6 49.8 135.8%

Dividends per share Rs 2.00 4.50 44.4%

Dividend yield (eoy) % 0.3 1.0 27.5%

Book value per share Rs 153.4 179.2 85.6%

Shares outstanding (eoy) m 1,898.24 285.00 666.0%

Bonus/Rights/Conversions ESOP,BC - -

Price / Sales ratio x 3.7 1.3 287.2%

Avg P/E ratio x 17.7 40.8 43.3%

P/CF ratio (eoy) x 10.8 9.1 119.1%

Price / Book Value ratio x 4.8 2.5 188.8%

Dividend payout % 4.8 40.6 11.9%

Avg Mkt Cap Rs m 1,388,563 128,963 1,076.7%

No. of employees `000 25 6 421.3%

Total wages/salary Rs m 16,535 12,273 134.7%

Avg. sales/employee Rs Th 15,222.1 17,104.2 89.0%

Avg. wages/employee Rs Th 673.9 2,107.0 32.0%

Avg. net profit/employee Rs Th 3,202.8 542.3 590.6%

INCOME DATA
Net Sales Rs m 373,521 99,632 374.9%

Other income Rs m 5,975 2,597 230.1%

Total revenues Rs m 379,496 102,229 371.2%

Gross profit Rs m 132,371 13,416 986.7%

Depreciation Rs m 49,639 11,023 450.3%

Interest Rs m 2,797 3,507 79.8%

Profit before tax Rs m 85,910 1,483 5,793.0%

Minority Interest Rs m -1,852 1,318 -140.5%

Prior Period Items Rs m 1,364 0 -

Extraordinary Inc (Exp) Rs m 0 2,665 0.0%

Tax Rs m 6,832 2,307 296.1%

Profit after tax Rs m 78,590 3,159 2,487.8%

Gross profit margin % 35.4 13.5 263.2%

Effective tax rate % 8.0 155.6 5.1%

Net profit margin % 21.0 3.2 663.6%

BALANCE SHEET DATA

Current assets Rs m 119,707 65,561 182.6%

Current liabilities Rs m 185,665 79,192 234.4%

Net working cap to sales % -17.7 -13.7 129.1%

Current ratio x 0.6 0.8 77.9%

Inventory Turnover Days 1 1 144.3%

Debtors Turnover Days 28 105 27.0%

Net fixed assets Rs m 480,923 116,059 414.4%

Share capital Rs m 18,982 2,850 666.0%

"Free" reserves Rs m 248,434 45,011 551.9%

Net worth Rs m 291,278 51,064 570.4%

Long term debt Rs m 97,542 60,113 162.3%

Total assets Rs m 624,120 198,956 313.7%

Interest coverage x 31.7 1.4 2,229.0%

Debt to equity ratio x 0.3 1.2 28.4%

Sales to assets ratio x 0.6 0.5 119.5%

Return on assets % 20.9 6.0 349.1%

Return on equity % 27.0 6.2 436.1%

Return on capital % 22.7 8.1 281.1%

Exports to sales % 0.0 0.0 -

Imports to sales % 9.1 4.7 192.1%

Net fx Rs m -35,570 -5,843 608.8%

Equitymaster Agora Research Private Limited.

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 Comparison Result
BHARTI AIRTEL
Bharti Airtel is the largest mobile telephony operator in the GSM space with 24% share of the Indian wireless
market (as at the end of June 2009). The company, apart from being the largest player in the mobile segment with
subscribers in all the 23-telecom circles of the country, also provides varied services like fixed line, broadband and
retail internet access. Bharti's network spans over 420,000 non-census towns and villages in India. During the
period FY04 to FY09, the company grew its sales and profits at compounded annual rates of 65% and 83%
respectively.

TATA TELESERV (MAH)

Tata Teleservices Maharashtra Limited (TTML) is the erstwhile Hughes Tele.com, wherein the Tata Group
acquired a controlling stake in December 2002. It is the holder of 'unified' telecom licenses in two markets - one,
Mumbai and the other, rest-of-Maharashtra and Goa. The company operates local-loop access services of fixed-
wireline, fixed-wireless (also called wireless-in-local-loop or WLL) and CDMA based mobile services, along with
broadband services. The total promoter holding in the company is 68.8%, with nearly 40% being held by Tata
Teleservices (TTSL), the parent company that operates the same services as TTML in the rest of India.

EQUITY SHARE DATA

BHARTI AIRTEL TATA TELESERV BHARTI AIRTEL/
(MAH)
31/3/2009 31/3/2009 TATA TELESERV
(MAH)

High Rs 980 38 2,578.9%

Low Rs 483 13 3,715.4%

Sales per share Rs 196.8 10.3 1,918.5%

Earnings per share Rs 41.4 -0.9 -4,623.1%

Cash flow per share Rs 67.6 1.5 4,371.0%

Dividends per share Rs 2.00 0.00 -

Dividend yield (eoy) % 0.3 0.0 -

Book value per share Rs 153.4 -2.0 -7,687.3%

Shares outstanding (eoy) m 1,898.24 1,897.19 100.1%

Bonus/Rights/Conversions ESOP,BC BC -

Price / Sales ratio x 3.7 2.5 149.5%

Avg P/E ratio x 17.7 -28.5 -62.0%

P/CF ratio (eoy) x 10.8 16.5 65.6%

Price / Book Value ratio x 4.8 -12.8 -37.3%

Dividend payout % 4.8 0.0 -

Avg Mkt Cap Rs m 1,388,563 48,378 2,870.2%

No. of employees `000 25 2 1,421.7%

Total wages/salary Rs m 16,535 1,130 1,463.3%

Avg. sales/employee Rs Th 15,222.1 11,274.0 135.0%

Avg. wages/employee Rs Th 673.9 654.7 102.9%

Avg. net profit/employee Rs Th 3,202.8 -984.4 -325.4%

INCOME DATA
Net Sales Rs m 373,521 19,459 1,919.5%

Other income Rs m 5,975 1,122 532.5%

Total revenues Rs m 379,496 20,581 1,843.9%

Gross profit Rs m 132,371 4,254 3,111.7%

Depreciation Rs m 49,639 4,631 1,071.9%

Interest Rs m 2,797 2,432 115.0%

Profit before tax Rs m 85,910 -1,687 -5,092.5%

Minority Interest Rs m -1,852 0 -

Prior Period Items Rs m 1,364 0 -

Extraordinary Inc (Exp) Rs m 0 0 -

Tax Rs m 6,832 12 56,933.3%

Profit after tax Rs m 78,590 -1,699 -4,625.7%

Gross profit margin % 35.4 21.9 162.1%

Effective tax rate % 8.0 -0.7 -1,118.0%

Net profit margin % 21.0 -8.7 -241.0%

BALANCE SHEET DATA

Current assets Rs m 119,707 5,909 2,025.8%

Current liabilities Rs m 185,665 10,609 1,750.1%

Net working cap to sales % -17.7 -24.2 73.1%

Current ratio x 0.6 0.6 115.8%

Inventory Turnover Days 1 0 250.8%

Debtors Turnover Days 28 47 59.8%

Net fixed assets Rs m 480,923 34,256 1,403.9%

Share capital Rs m 18,982 18,972 100.1%

"Free" reserves Rs m 248,434 5,832 4,259.8%

Net worth Rs m 291,278 -3,787 -7,691.5%

Long term debt Rs m 97,542 16,208 601.8%

Total assets Rs m 624,120 40,265 1,550.0%

Interest coverage x 31.7 0.3 10,353.2%

Debt to equity ratio x 0.3 -4.3 -7.8%

Sales to assets ratio x 0.6 0.5 123.8%

Return on assets % 20.9 5.9 354.7%

Return on equity % 27.0 44.9 60.1%

Return on capital % 22.7 6.0 378.3%

Exports to sales % 0.0 0.0 -

Imports to sales % 9.1 18.7 48.4%

Net fx Rs m -35,570 -3,874 918.2%

RESEARCH IT! >> COMPANY INFO  PRINT THIS

 E-MAIL THIS
 BUY/SELL?
BHARTI AIRTEL LIMITED (BTVL)
REGD OFF: Aravali Crescent, 1, Nelson Mandela Road, New Delhi - 110 070
E-MAIL: compliance.officer@bharti.in WEB SITE: www.airtel.in
TELEPHONE: (011) 4666 6100 FAX: (011) 4666 6137
SECTOR: TELECOM GROUP: MISCELLANEOUS
TR AGENT: Karvy Computershare, 46, Avenue 4, St. No. 1, Banjara Hills, Hyd. - 34
AUDITOR S. R. Batliboi & Associates

CHM: Sunil B. Mittal COMP SEC: Vijaya Sampath

YEAR OF INC 1995 BSE CODE 532454 FV (Rs) 5 YIELD (%) -

Price History
Top
 Price Rs 294.5  P/E X 14.1
 % ch % -1.4  P/CF X 8.7
 Mkt Cap Rs m 1,118,011.9  EPS (31/03/2009) Rs 20.8
 Vol '000 416.2  Shares O/S m 3,796.95
 % ch week % 5.4  % ch 1-month % -1.2
 % ch 12-month % -0.1  52 week H/L Rs 495.0/272.0
(Price History as on 08/03/10)

Interim Results
Top
No. of Months 3 3 3
Year Ending * 30/06/2009 * 30/09/2009 * 31/12/2009
Net Sales Rs m 104,299 103,552 103,050
Other income Rs m 3,743 379 1,545
Turnover Rs m 108,042 103,931 104,595
Expenses Rs m 61,990 61,331 62,612
Gross profit Rs m 41,838 41,712 40,011
Depreciation Rs m 14,372 14,997 15,915
Interest Rs m 0 1,591 0
Profit before tax Rs m 31,209 25,503 25,641
Tax Rs m 4,729 2,961 3,271
Profit after tax Rs m 26,480 22,542 22,370
Gross profit margin % 40.1 40.3 38.8
Effective tax rate % 15.2 11.6 12.8
Net profit margin % 25.4 21.8 21.7

* Results Consolidated | Interim results exclude extraordinary / exceptional items | Historical Quarterly Results

Profile

Top
Bharti Airtel is the largest mobile telephony operator in the GSM space with 24% share of the Indian wireless market (as at
the end of June 2009). The company, apart from being the largest player in the mobile segment with subscribers in all the
23-telecom circles of the country, also provides varied services like fixed line, broadband and retail internet access.
Bharti's network spans over 420,000 non-census towns and villages in India. During the period FY04 to FY09, the
company grew its sales and profits at compounded annual rates of 65% and 83% respectively.

Financials
Top
No. of Months 12 12 12
* Results Consolidated Year Ending * 31/03/2007 * 31/03/2008 * 31/03/2009
EQUITY SHARE DATA
High Rs 850 1,149 980
Low Rs 310 700 483
Sales per share Rs 97.2 142.3 196.8
Earnings per share Rs 21.4 33.7 41.4
Cash flow per share Rs 35.2 53.8 67.6
Dividends per share Rs 0.00 0.00 2.00
Dividend yield (eoy) % 0.0 0.0 0.3
Book value per share Rs 60.6 114.5 153.4
Shares outstanding (eoy) m 1,895.93 1,897.91 1,898.24
Bonus/Rights/Conversions BC,ESOP ESOP ESOP,BC
Price / Sales ratio x 6.0 6.5 3.7
Avg P/E ratio x 27.1 27.4 17.7
P/CF ratio (eoy) x 16.5 17.2 10.8
Price / Book Value ratio x 9.6 8.1 4.8
Dividend payout % 0.0 0.0 4.8
Avg Mkt Cap Rs m 1,099,639 1,754,618 1,388,563
No. of employees `000 20 26 25
Total wages/salary Rs m 11,488 13,972 16,535
Avg. sales/employee Rs Th 9,210.1 10,575.2 15,222.1
Avg. wages/employee Rs Th 574.4 547.0 673.9
Avg. net profit/employee Rs Th 2,031.1 2,503.7 3,202.8
INCOME DATA
Net Sales Rs m 184,202 270,122 373,521
Other income Rs m 1,730 3,600 5,975
Total revenues Rs m 185,932 273,722 379,496
Gross profit Rs m 73,280 109,697 132,371
Depreciation Rs m 26,191 38,102 49,639
Interest Rs m 2,035 2,080 2,797
Profit before tax Rs m 46,784 73,115 85,910
Minority Interest Rs m -482 -1,000 -1,852
Prior Period Items Rs m -14 -633 1,364
Extraordinary Inc (Exp) Rs m 0 0 0
Tax Rs m 5,667 7,529 6,832
Profit after tax Rs m 40,621 63,953 78,590
Gross profit margin % 39.8 40.6 35.4
Effective tax rate % 12.1 10.3 8.0
Net profit margin % 22.1 23.7 21.0
BALANCE SHEET DATA
Current assets Rs m 45,403 65,066 119,707
Current liabilities Rs m 104,575 148,227 185,665
Net working cap to sales % -32.1 -30.8 -17.7
Current ratio x 0.4 0.4 0.6
Inventory Turnover Days 2 2 1
Debtors Turnover Days 37 38 28
Net fixed assets Rs m 229,753 361,194 480,923
Share capital Rs m 18,959 18,979 18,982
"Free" reserves Rs m 95,050 173,122 248,434
Net worth Rs m 114,857 217,242 291,278
Long term debt Rs m 41,597 76,940 97,542
Total assets Rs m 276,627 474,357 624,120
Interest coverage x 24.0 36.2 31.7
Debt to equity ratio x 0.4 0.4 0.3
Sales to assets ratio x 0.7 0.6 0.6
Return on assets % 27.3 22.4 20.9
Return on equity % 35.4 29.4 27.0
Return on capital % 30.9 25.0 22.7
Exports to sales % 0.0 0.0 0.0
Imports to sales % 16.3 18.0 9.1
Exports (fob) Rs m 0 0 0
Imports (cif) Rs m 29,977 48,678 33,834
Fx inflow Rs m 15,756 15,380 18,094
Fx outflow Rs m 41,203 65,663 53,664
Net fx Rs m -25,447 -50,283 -35,570
* Results Consolidated

Share Holding Top

Indian Promoters : 45.3%
Foreign collaborators : 22.1%
Indian inst/Mut Fund : 7.9%
FIIs : 19.6%
ADR/GDR : 0.0%
Free float : 5.1%
Shareholders : 204,846

Equitymaster Agora Research Private Limited.

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FINANCIAL MANAGEMENT
PROJECT ON BHARTI AIRTEL
SUBMITTED BY:- Ashish Sharma Roll no. 10 FI-1

BHARTI AIRTEL

Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. The Bharti
Group, has a diverse business portfolio and has created global brands in the
telecommunication sector. Bharti has recently forayed into retail business as Bharti Retail
Pvt. Ltd. under a MoU with Wal-Mart for the cash & carry business. It has successfully
launched an international venture with EL Rothschild Group to export fresh agri products
exclusively to markets in Europe and USA and has launched Bharti AXA Life Insurance
Company Ltd under a joint venture with AXA, world leader in financial protection and
wealth management. Bharti Airtel is one of India's leading private sector providers of
telecommunications services based on an aggregate of 61,914,666 customers as on
February 29, 2008, consisting of 59,670,174 GSM mobile and 2,244,492 broadband &
telephone customers. The businesses at Bharti Airtel have been structured into three
individual strategic business units (SBU’s)
- mobile services, telemedia services (ATS) &
enterprise services. The mobile services group provides GSM mobile services across
India in 23 telecom circles, while the ATS business group provides broadband &
telephone services in 94 cities. The enterprise services group has two sub-units - carriers
(long distance services) and services to corporates. All these services are provided under
the Airtel brand.
Airtel comes to you from Bharti Airtel Limited, India’s largest integrated and the first
private telecom services provider with a footprint in all the 23 telecom circles. Bharti
Airtel since its inception has been at the forefront of technology and has steered the
course of the telecom sector in the country with its world class products and services. The
businesses at Bharti Airtel have been structured into three individual strategic business
units (SBU’s)
- Mobile Services, Airtel Telemedia Services & Enterprise Services. The
mobile business provides mobile & fixed wireless services using GSM technology across
23 telecom circles while the Airtel Telemedia Services business offers broadband &
telephone services in 94 cities. The Enterprise services provide end-to-end telecom
solutions to corporate customers and national & international long distance services to
carriers.

All these services are provided under the Airtel brand.

Bharti Enterprises is one of India’s
leading business groups with interests in telecom, agri business, insurance and retail.
Bharti Airtel, India’s leading integrated telecom company, has been at the forefront of the
telecom revolution and has transformed the telecom sector with its world-class services built on leading edge technologies. Bharti has
been a pioneering force in the telecom sector and today enjoys a strong nationwide presence. Bharti has grown successfully in
partnership with various leading companies of the world - Singapore Telecom, Vodafone, Warburg Pincus, and British Telecom, to
name a few. Bharti has recently forayed into the retail sector with its subsidiary Bharti Retail. It has also entered into a joint venture
with Wal-Mart for setting up the supply chain, logistics and cash and carry to support the burgeoning retail market in India.
Investor Relations

Creating value for our customers, employees, investors, partners, vendors and the society
at large lies at the root of our fundamental business strategy. Our core principles of trust
and transparency have come a long way in helping us develop and nurture long-term
relationships with our key stakeholders.
Shares

The equity shares of Bharti Airtel are currently listed on National Stock Exchange of
India Limited (NSE) and The Stock Exchange, Mumbai, (BSE). Bharti Airtel offered
185,336,700 equity shares in the initial public offering (IPO) and raised Rs 8,340.15
million through this process. The shares were over subscribed 2.56 times. With this IPO,
Bharti Airtel established certain important landmarks in the history of the Indian capital
market. Together with being the first 100% book building process that this country has
seen, the listing was completed within a record time of ten working days. of the close of
the issue. Moreover the process of allotment and issue of shares was also completed
within one day of the last day of pay-in. The book running lead managers for the IPO
were JM Morgan Stanley and DSP Merrill Lynch and the registrars to the issue was
Karvy Consultants Limited. The equity shares of Bharti Airtel are currently listed
on National Stock Exchange of India Limited (NSE) and the Stock Exchange, Mumbai
(BSE).
Partners

The company has a strategic alliance with SingTel. The investment made by SingTel is
one of the largest investments made in the world outside Singapore, in the company.
The company’s mobile network equipment partners include Ericsson and Nokia. In the
case of the broadband and telephone services and enterprise services (carriers),
equipment suppliers include Siemens, Nortel, Corning, among others. The Company also
has an information technology alliance with IBM for its group-wide information
technology requirements and with Nortel for call center technology requirements. The
call center operations for the mobile services have been outsourced to IBM Daksh,
Hinduja TMT, Teletech & Mphasis.

Operational Network:

Provides GSM mobile services in all the 23 telecom circles in India, and was the first private operator to have an all India presence.
Provides telemedia services (fixed line) in 94 cities in India.
Vision & promise:

By 2010 Airtel will be the most admired brand in India:



Loved by more customers



Targeted by top talent



Benchmarked by more businesses

“We at Airtel always think in
fresh and innovative ways about the needs of our customers and how we want them to feel. We deliver what we promise and go out
of our way to
delight the customer with a little bit more”.
\
Highlights:

Bharti Airtel to Observe Silent period from March 31, 2008.



Sunil Bharti Mittal Conferred JRD Tata Corporate Leadership Award .



Manoj Kohli Inducted Into The GSM Association Board .



Sunil Bharti Mittal Awarded Global Telecom Sector’s Highest Honour

Bharti Airtel crosses the 60 million customer mark



Leading Private Equity firm Kohlberg Kravis Roberts & Co. (KKR) to Invest USD 250 million in Bharti Infratel
Company’s management and company’s share holding pattern:

Chairman

Sunil Bharti Mittal

Managing Director
Company Secretary

Vijaya Sampath

Auditor

S R Batliboi & Associates

Registered Office

Qutab Ambience,

H-5/12 Mehrauli Road,

New Delhi,110030,
Telephone 91 – 011 - 41666001- 7
Fax 91 – 011 – 41666011 - 12
E- mail
ir@bharti.com

Website

http://www.airtel.in

Face Value (Rs)

10

BSE Code

532454

BSE Group

A
NSE Code

BHARTIARTL

Bloomberg

BHARTI IN

Reuters

BRTI.BO

ISIN Demat

INE397D01016

Market Lot
1

Listing

Mumbai,NSE

Financial Year End

03

Book Closure Month

Jul

AGM Month

Jul
Registrar'
s Name & Address

Karvy Computershare Pvt

Ltd,

Karvy House 46,

Road No 4
Street No1,

Banjara
Hills,

Hyderabad
-

500034.

91
-
40
-
23312454/23320
91
-
040
-
23311968

Shareholding Pattern

Shares

[%]

Foreign

611,423,266.00

32.25

Instit
utions

72,504,488.00

3.83
Govt Holding

Non Promoter Corp.

Hold.

31,600,390.00

1.67

Promoters

1,155,645,678.00

60.96

Public & Others

24,569,775.00

1.29
Totals

1,895,743,597.00

100

Ratio analysis:

1 Net profit margin ratio:

=Net profit*100/Net sales
Year

05

06

07

Net profit

1210.67

2012.08

4033.23
Net sales

8142.44

11259.12

17906.54

Net margin

14.86%

17.87%

22.52%

Comment:
The Net profit Margin increased significantly. The high net profit margin implies, higher return to share holders, in the form of
dividend and stock price appreciation.

2 Gross-profit Margin ratio

:
=Gross profit*100/Net sales
Year

05

06
07

Gross profit

4080.55

7972.49

12970.02

Net sales

8142.44

11259.12

17906.54

Gross margin

50.11%

70.81%

72.43%

Comment:
The Gross profit margin has been increasing steadily, since 2005. The reason for it can be high sales price but cost of goods sold
remaining constant. The high Gross profit margin shows that the company is doing well.
3 Capital turn-over ratio:

=Net sales/Average capital employed

Capital employed=share holders fund+ long term liability-misc. expenses

Year

05

06

07

Net sales

8142.44

11253.12

173906.54

Average capital
employed

4633.87

6735.77

6943.16
CTR

1.76

1.67

2.58

Comment:
The capital turnover ration of Bharti Airtel Ltd. has increased over a period of three years.
4 Debtor turn-over ratio:
=Net sales/Average debtors
Year

05

06

07

Net sales

8142.44

11253.12

17906.54

Average debtor
715.74

895.96

1247.33

DTR

11.38

12.56

14.35

Comment:
The debtor turn-over ratio of Bharti-Airtel an upward trend. Average collection period=365/DTR. ACP :
32.07 29.06 25.44 There the average collection period is decreasing. There is a sharp decline in
this ratio. This shows that the firm have shortened the credit-period of debtors. It also shows, that the collection team is performing
well, as a result of which ,the average collection period has come down.
5 Creditors Turn-over ratio:
=Annual Net credit purchases OR cost of purchases / Average Creditor &Bills payable
Cost of purchases=
Total direct expenses+{closing stock-opening stock}
Year

05

06

07
Direct expenses

3728

5241.17

7905.25

+ Stock

11.57

-
13.84

30.07

Cost of purchases

3739.59

5227.33

7935.32

Avg. creditors &

Bills payable

4994
.29
4796.29

5310.81

CTR

0.75

1.09

1.49

Comment
:
An increase in the creditors turn-over ratio reveals, that there is decrease in availing of credit facilities from the creditors.
7 Inventory/Stock Turn-over ratio:
=sales/closing inventory
Year

05

06

07

Sales
8142.44

11259

17905.8

Closing
-
inventory

31.58

17.74

47.81

STR

254.87

634.67

374.52

DIH

1.43

0.58

0.97
Days of inventory holding=
365 / inventory turn-over
Comment
: The Stock Turn-over ratio of Airtel, shows a mixed trend,it has a high stock Turn-over ratio, which is considered good higher
ratio ,may also indicate low investment in inventories.
8 ROE:
= {PAT-Preference dividend} *100 / share holders equity or net worth
Year

05

06

07

PAT

1210.67

2012.08

4033.23

Preference dividend

0
0

Share holder equity

4533.60

7333.43

11413.26

ROE

26.704

27.44

35.34

Comment
:
It reveals that there is a little improvement in Return on Equity in 06 over 05, but drastic improvement in 07 over 06.
9 ROI:

a.
RONW (Return on net worth)

= {PAT-Preference dividend}/{share holders fund+ reserves & surplus- misc. exp. not
Not written off}
Year
05

06

07

Share
-
holders fund

4533.60

7333.43

11413.26

Preference dividend

M
isc. exp. Not
written off

58.34

7.94
7.66

PAT

1210.67

2012.08

4033.23

RONW

27.05

27.47

35.35

EPS
=PAT-Preference dividend/weighted Avg. no of Equity shares outstanding
Year

05

06

07

PAT
1210.67

2012.08

4033.23

Preference

dividend

W.A.N.O.E.S.O

185.609

189.388

189.593

EPS

6.52

10.62
21.27

CEPS
= {PAT-Preference dividend+ non cash charges}/ {weighted Avg. no of
Equity shares outstanding}
Year

05

06

07

PAT

1210.67

2012.08

4033.23

Preference dividend

Non
-
cash charges

1019.36

1547.02

2468.47

W.A.N.O.E.S.O

185.609

189.388

189.593

CEPS

12.01

18.79

34.293

Comment [ROI]:
Quite high ROI performance significantly better than 05 & 06 in 07