BHARTI AIRTEL 2020-21 Annual Report Analysis

Wed, 31 Mar

BHARTI AIRTEL has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

BHARTI AIRTEL Income Statement Analysis

• Operating income during the year rose 16.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 891.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 29.8% in FY21 as against 4.4% in FY20.
• Depreciation charges increased by 8.5% and finance costs increased by 7.2% YoY, respectively.
• Other income declined by 58.1% YoY.
• Net profit for the year declined by 28.1% YoY.
• Net profit margins during the year grew from 35.6% in FY20 to 22.0% in FY21.

BHARTI AIRTEL Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	879,380	1,025,174	16.6%
Other income	Rs m	15,357	6,428	-58.1%
Total Revenues	Rs m	894,737	1,031,602	15.3%
Gross profit	Rs m	-38,670	305,939	-891.2%
Depreciation	Rs m	270,944	294,044	8.5%
Interest	Rs m	140,732	150,910	7.2%
Profit before tax	Rs m	-434,989	-132,587	-69.5%
Tax	Rs m	-121,823	92,456	-175.9%
Profit after tax	Rs m	-313,166	-225,043	-28.1%
Gross profit margin	%	-4.4	29.8
Effective tax rate	%	28.0	-69.7
Net profit margin	%	-35.6	-22.0

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BHARTI AIRTEL Balance Sheet Analysis

• The company's current liabilities during FY21 down at Rs 1,116 billion as compared to Rs 1,315 billion in FY20, thereby witnessing an decrease of -15.1%.
• Long-term debt stood at Rs 1,106 billion as compared to Rs 911 billion during FY20, a growth of 21.4%.
• Current assets fell 29% and stood at Rs 548 billion, while fixed assets rose 5% and stood at Rs 2,712 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 3,259 billion as against Rs 3,338 billion during FY20, thereby witnessing a fall of 2%.

BHARTI AIRTEL Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	770,775	588,650	-23.6
Current Liabilities	Rs m	1,314,876	1,116,359	-15.1
Long-term Debt	Rs m	910,792	1,105,603	21.4
Total Liabilities	Rs m	3,337,630	3,259,414	-2.3
Current assets	Rs m	766,432	547,529	-28.6
Fixed Assets	Rs m	2,571,198	2,711,885	5.5
Total Assets	Rs m	3,337,630	3,259,414	-2.3

BHARTI AIRTEL Cash Flow Statement Analysis

• BHARTI AIRTEL's cash flow from operating activities (CFO) during FY21 stood at Rs 482 billion, an improvement of 165.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -269 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -249 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs -40 billion from the Rs 77 billion net cash flows seen during FY20.

BHARTI AIRTEL Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	181,287	482,050	165.9%
Cash Flow from Investing Activities	Rs m	-304,919	-268,884	-
Cash Flow from Financing Activities	Rs m	191,444	-249,103	-
Net Cash Flow	Rs m	76,746	-39,909	-

Current Valuations for BHARTI AIRTEL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -41.0, an improvement from the EPS of Rs -57.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 517.3, stands at -13.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.2 times, while the price to sales ratio stands at 2.8 times.
• The company's price to cash flow (P/CF) ratio stood at 40.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	161.2	186.7
TTM Earnings per share	Rs	-57.4	-41.0
Diluted earnings per share	Rs	-53.2	-38.2
Price to Cash Flow	x	-61.4	40.5
TTM P/E ratio	x	-8.2	-13.2
Price / Book Value ratio	x	3.1	4.7
Market Cap	Rs m	2,404,810	2,792,833
Dividends per share (Unadj.)	Rs	2.0	0.0

Ratio Analysis for BHARTI AIRTEL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.5x during FY21, from 0.6x during FY20. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 0.1x during FY21, from -2.1x during FY20. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at -38.2% during FY21, from -40.6% during FY21. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 1.1% during FY21, from -17.5% during FY20. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at -2.3% during FY21, from -5.2% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	0.6	0.5
Debtors’ Days	Days	19	13
Interest coverage	x	-2.1	0.1
Debt to equity ratio	x	1.2	1.9
Return on assets	%	-5.2	-2.3
Return on equity	%	-40.6	-38.2
Return on capital employed	%	-17.5	1.1

To see how BHARTI AIRTEL has performed over the last 5 years, please visit here.

BHARTI AIRTEL Share Price Performance

Over the last one year, BHARTI AIRTEL share price has moved up from Rs 440.6 to Rs 517.3, registering a gain of Rs 76.7 or around 17.4%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 11,919.9 (down 0.9%). Over the last one year it has moved up from 6,403.4 to 11,919.9, a gain of 5,517 points (up 86.1%).

Overall, the S&P BSE SENSEX is up 74.1% over the year.

(To know more, check out historical annual results for BHARTI AIRTEL and quarterly results for BHARTI AIRTEL)

Read: Latest Annual Report Analysis of BHARTI AIRTEL