Bharti Airtel - Weak Africa shadowed positives, Maintain HOLD - Emkay

Reco: HOLD
CMP: Rs 317
Target Price: Rs 350

- Revenue at Rs204.6bn (+1% qoq), EBITDA at Rs64.9bn (+5% qoq) with EBITDA margin at 31.7%. EBITDA beat was driven by lower access and SG&A cost. APAT at Rs7.2bn was up 102% qoq

- Impressive domestic wireless rev. growth of 4.9% qoq, driven by 5.1% growth in traffic. Africa disappointed with 10.8% qoq traffic decline, due to seasonally weak quarter

- Going forward, domestic wireless rev. growth would be volume driven (+9%) as realization/min is expected to be flat. Competitive intensity in Africa would keep pricing under pressure

- Continue to remain cautious as regulatory environment remains tough. Maintain HOLD with target price of Rs350 (estimating -ve Rs45 of regulatory impact)

Source : Equity Bulls

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