Maintain 'buy' on Bharti Airtel - TP Rs.400 - Geojit BNP Paribas Financial Services

- 4QFY12 revenue, EBITDA and EPS are lower than expectations. Wireless revenue was in line as weak RPM (revenue per minute) was offset by strong minutes.

- Revenue miss was from non- wireless, largely from the enterprise segment, which reported qoq decline.

- EBITDA margin was in line with estimate but EPS missed target because of forex loss and higher tax.

- The management viewed that competitive intensity remains. Therefore, further tariff hike in the immediate term is unlikely.

- Capex guidance of USD 3- 3.2 billion. India capex is expected to increase with rising focus on data coverage. Africa capex is expected to decline.

- Enterprise EBITDA margin is expected to rebound.

- Important positives for the quarter are strong minutes growth of 5.1% qoq, improvement in EBITDA margin from India operations from 34.2% to 35.2%, ARPU increase from Rs.187 in 3Q to Rs. 189 in 4Q, around 100 bps improvement in profit margin from Africa and 3.3% qoq increase in mobile revenue due to strong minute growth.

- Current valuation is near the all time low. Reiterate 'buy' with a target price of Rs.400 over one year.

Source : Equity Bulls

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