Maintain 'buy' on Bharti Airtel - TP Rs.375 - Geojit BNP Paribas Financial Services

- Maintain 'buy' rating on Bharti Airtel with the same target price of Rs.375.

- Company's net profit disappointed once again driven by one offs like forex loss and higher one time taxes/ license fees in Africa.

- Revenue and EBITDA also missed street's estimates.

- Rebound in minutes usage, lower churn and data volume are the main positives.

- EBITDA was flat excluding the one off impact in 2Q.

- EBITDA estimates for FY13 and FY14 have been cut by 2%.

- Voice RPM (revenue per minute) continued its decline in 3Q. The Indian telecom industry has started to cut discounts and free minutes. Hence, it is expected that RPM to start increasing.

- The company is reporting strong data volume growth of 25% qoq. It is expected that ARPM and data revenue to drive company's domestic EBITDA margin recovery.

- Retain target price at Rs.375 assuming pick up in RPM and strong data

Source : Equity Bulls

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