Bharti Airtel - March 2013 Results Preview - Motilal Oswal

- We expect consolidated revenue to grow 10% YoY to INR206.7b. We expect India and South Asia (SA) revenue to grow 7% YoY to INR146.9b while Africa business revenue is likely to grow 1% QoQ at USD1.14b.

- Consolidated EBITDA margin is likely to expand ~50bp QoQ. For the India and SA business, we expect 70bp QoQ EBITDA margin expansion, largely led by non-mobile. We expect flat EBITDA margin for Africa.

- We expect India & SA mobile revenue to grow 8% YoY to INR113.2b, driven by 7% YoY (3% QoQ) traffic growth. RPM is likely to improve 0.6% QoQ. We estimate 30.4% EBITDA margin for mobile business.

- Africa business performance is likely to be sluggish, with an expected 1% revenue/EBITDA growth on a QoQ basis. We estimate ARPU of USD6 and subscriber base of 63.2m.

- Consolidated net profit is likely to decline 28% YoY to INR7.2b. We expect PAT for India and SA to decline 6% YoY. We have not assumed any forex gain/loss for Bharti in our 4QFY13 estimates.

- Bharti trades at proportionate EV/EBITDA of 5.5x FY15E. Buy.

Source : Equity Bulls

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