Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us  

| More

ICICI Securities - Telecom - Bharti Airtel to outperform yet again...

Posted On: 2021-01-10 04:44:04 (Time Zone: Arizona, USA)

Merger of Bharti Infratel and Indus Towers (Indus) will have an impact on Bharti Airtel's (Bharti) reported numbers for Q3FY21. This would be due to: 1) deconsolidation of Bharti Infratel (which would now be treated as a JV with equity accounting, hurting Bharti's reported EBITDA by Rs5.5bn) and 2) Indus (erstwhile Bharti Infratel) full consolidation of Bharti Infratel and Indus. Bharti would continue to outperform with strong subs addition driving mobile revenue growth of 5% QoQ vs VIL's 1.1%. Bharti would also show continued traction in 4G subs addition (10mn) and grab higher market share. Indus is likely to see steady tenancy adds on lower cancellations. Tata Communications' EBITDA would dip 10% QoQ on seasonality, and normalisation of costs.

- ARPU growth driven by 4G subs addition. Bharti's subs base is likely to grow by 9mn and that for VIL to dip by 3mn. VIL has seen deceleration in its subs decline, and we expect its subs base to stabilise in Q4FY21. Bharti should benefit from rise in MNP, which should also drive higher revenue growth. We are factoring-in ARPU rise of 0.1% for Bharti and 3% for VIL. The rise for VIL is optically higher on exit of low-ARPU subs. Data subs addition is seen at 10mn for Bharti and 2mn for VIL.

- Bharti's consolidated EBITDA (like-to-like) to rise 2.0% QoQ to Rs113bn. Bharti's India revenues are likely to grow 1.8% QoQ (21% YoY) to Rs192bn, led largely by mobile segment (up 5.0% QoQ / 30% YoY). Its EBITDA is expected to rise 1.2% QoQ (like-to-like) to Rs81bn. India EBITDA to be impacted (Rs5.5bn) by deconsolidation of Bharti Infratel. Bharti's Africa USD revenues and EBITDA are likely to grow 0.7% QoQ to US$972mn and 0.7% QoQ to US$427mn respectively. We expect Bharti's consolidated revenues to rise 1.7% QoQ to Rs262bn and EBITDA (like-to-like) by 2.0% QoQ to Rs113bn. Net loss is likely to be only Rs4.7bn.

- VIL's EBITDA to rise 2.5% QoQ to Rs42.6bn. VIL's revenues to rise only 1.1% QoQ to Rs109bn. This is due to continued loss of subs (down 3mn), which should start growing from Q4 itself. ARPU is estimated to increase 3% QoQ as most of the lost subs were in the low-ARPU bucket. EBITDA is expected to show a rise of 2.5% QoQ to Rs43bn. VIL to show a net loss of Rs63bn with nil tax rebate.

- Indus' tenancies to rise by 3,700 (post-merger). Rental per tenant is likely to dip 2.9% YoY to Rs41,753. We estimate rental revenues to dip 1.4% YoY (1.8% QoQ) to Rs39.6bn on removal of equipment by tenants who have given exit notice. EBITDA is likely to dip 1.6% YoY to Rs32bn on lower rental revenues offsetting the higher energy margin. We expect consolidated net profit to drop 5.6% YoY to Rs12.5bn. The numbers presented are assuming full consolidation of the erstwhile Bharti Infratel and Indus Towers for all five quarters.

- TCom EBITDA to dip 10% QoQ to Rs10bn (excl. real estate). We expect GVS (global voice solution) revenues to drop 2.0% QoQ and EBITDA margin to be at 6.5%. GDS (global data solution) revenues are estimated to dip 2% QoQ (+4.3% YoY) on seasonality. EBITDA margin is likely to dip 250bps QoQ to 27.1% on normalisation of recurring costs. We estimate net profit at Rs3bn.

Source: Equity Bulls

Click here to send ur comments or to

Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only., its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.

Other Headlines:

4th Industrial Conclave - Bullish undertone, favourable valuation - HDFC Securities

Sanofi India - Weak quarter; sequential improvement - ICICI Securities

Sunteck Realty - All eyes on upcoming launches - ICICI Securities

Company Update - Tata Motors - ICICI Direct

Q4CY20 Company Update - Mahindra CIE Automotive - ICICI Direct

Event Update - Hindalco - ICICI Direct

EY report launch at BioAsia 2021 - Moving the needle: Healthcare industry in a post-COVID world

Initiating Coverage - Dalmia Bharat Ltd - HDFC Securities Retail Research Desk

Initiating Coverage - Mastek Ltd - HDFC Securities Retail Research Desk

Hindalco Industries - Status quo maintained - ICICI Securities

Tata Motors - India business scaling in the right direction - ICICI Securities

IPO Review - Heranba Industries Ltd

Company Update - Narayana Hrudayalaya - ICICI Direct

Ambuja Cements - Market share sustenance key for rerating - ICICI Securities

ADD on Astral Poly Technik - An 'astr'onomical growth story - HDFC Securities

FMCG Sector Update Report - Divergence narrows; refocus on core - HDFC Securities

Maintain REDUCE on Jubilant FoodWorks - More legs for growth; reflecting confidence on core - HDFC Securities

Torrent Power - Growth acceleration - ICICI Securities

Mahindra CIE Automotive - CY20 performance closes on a strong note - ICICI Securities

Q3FY21 Company Update - V-Guard Industries - ICICI Direct

Quant Pick - Indus Towers - ICICI Direct

Q4CY20 Result Update - Ambuja Cement - ICICI Direct

Q3FY21 Company Update - Nesco Ltd - ICICI Direct

Maintain BUY on Ambuja Cements - Healthy quarter; multiple triggers ahead - HDFC Securities

Heranba Industries Ltd. - IPO - Sound Financials & Promising Outlook Augur Well

India Equity Strategy Report - Quarterly flipbook: Q3 - upgrades galore! - HDFC Securities

Earnings Wrap Q3FY21: Encouraging quarter, broad based recovery under way!

Shilpa Medicare - USFDA import alert at Jadcherla unit - ICICI Securities

Q3FY21 Company Update - Indian Bank - ICICI Direct

Quant Pick - Torrent Power - ICICI Direct

GE T&D India - Strong cashflow - ICICI Securities

Q3FY21 Result Update - Graphite India - ICICI Direct

Q4CY2020 Result Update - Varun Beverages - ICICI Direct

Q3FY21 Company Update - NBCC Ltd - ICICI Direct

Quant Pick - United Breweries - ICICI Direct

Q4CY2020 Result Update - Nestlé India - ICICI Direct

Q3FY21 Result Update - Time Technoplast - ICICI Direct

Healthy Business Performance Puts ITC Stock Recovery on Track

Gold - Feb 17, 2021 - Reliance Securities

Maintain REDUCE on Nestle India - Steady revenue show; employee cost dents margins - HDFC Securities

Varun Beverages - Q4 CY20 Result and Concall Update - YES Securities

Nestle India - Q4 CY20 Result Update - YES Securities

Reiterate BUY on JMC Projects - Some hits, some misses - HDFC Securities

Varun Beverages - Strong volumes; higher margins - ICICI Securities

Computer Age Management Services - Play on industry AUM growth - ICICI Securities

Nestle India - Just a tad underwhelming (given the high benchmarks expected from Nestle India) - ICICI Securities

NHPC - Earnings robust; projects on track - ICICI Securities

Maintain BUY on ITD Cementation - Gradual recovery shaping up - HDFC Securities

Techno Electric & Engineering - Strong margins, healthy growth outlook - ICICI Securities

Time Technoplast - Outlook upbeat; execution remains key - ICICI Securities

Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2020