BHARTI AIRTEL 2023-24 Annual Report Analysis

Wed, 31 Jul

BHARTI AIRTEL has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

BHARTI AIRTEL Income Statement Analysis

• Operating income during the year rose 7.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 2.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 48.7% in FY24 as against 51.3% in FY23.
• Depreciation charges increased by 8.5% and finance costs increased by 17.3% YoY, respectively.
• Other income grew by 101.4% YoY.
• Net profit for the year declined by 30.4% YoY.
• Net profit margins during the year declined from 8.8% in FY23 to 5.7% in FY24.

BHARTI AIRTEL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	1,391,448	1,499,824	7.8%
Other income	Rs m	9,366	18,860	101.4%
Total Revenues	Rs m	1,400,814	1,518,684	8.4%
Gross profit	Rs m	713,558	729,783	2.3%
Depreciation	Rs m	364,318	395,376	8.5%
Interest	Rs m	192,999	226,477	17.3%
Profit before tax	Rs m	165,607	126,790	-23.4%
Tax	Rs m	42,733	41,210	-3.6%
Profit after tax	Rs m	122,874	85,580	-30.4%
Gross profit margin	%	51.3	48.7
Effective tax rate	%	25.8	32.5
Net profit margin	%	8.8	5.7

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BHARTI AIRTEL Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 1,387 billion as compared to Rs 1,220 billion in FY23, thereby witnessing an increase of 13.7%.
• Long-term debt down at Rs 1,310 billion as compared to Rs 1,516 billion during FY23, a fall of 13.6%.
• Current assets rose 1% and stood at Rs 583 billion, while fixed assets fell 1% and stood at Rs 3,670 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 4,253 billion as against Rs 4,277 billion during FY23, thereby witnessing a fall of 1%.

BHARTI AIRTEL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	773,881	818,099	5.7
Current Liabilities	Rs m	1,219,638	1,386,678	13.7
Long-term Debt	Rs m	1,515,686	1,309,626	-13.6
Total Liabilities	Rs m	4,276,813	4,252,882	-0.6
Current assets	Rs m	575,013	582,761	1.3
Fixed Assets	Rs m	3,701,800	3,670,121	-0.9
Total Assets	Rs m	4,276,813	4,252,882	-0.6

BHARTI AIRTEL Cash Flow Statement Analysis

• BHARTI AIRTEL's cash flow from operating activities (CFO) during FY24 stood at Rs 789 billion, an improvement of 20.8% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -502 billion, an improvement of 28.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -278 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 307 million from the Rs 16 billion net cash flows seen during FY23.

BHARTI AIRTEL Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	653,246	788,982	20.8%
Cash Flow from Investing Activities	Rs m	-390,802	-502,039	-
Cash Flow from Financing Activities	Rs m	-244,695	-277,785	-
Net Cash Flow	Rs m	16,227	307	-98.1%

Current Valuations for BHARTI AIRTEL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 14.2, an decline from the EPS of Rs 20.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,485.4, stands at 154.6 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 11.0 times, while the price to sales ratio stands at 6.0 times.
• The company's price to cash flow (P/CF) ratio stood at 12.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	233.2	248.0
TTM Earnings per share	Rs	20.6	14.2
Diluted earnings per share	Rs	20.2	14.1
Price to Cash Flow	x	9.4	12.6
TTM P/E ratio	x	39.5	154.6
Price / Book Value ratio	x	5.8	7.4
Market Cap	Rs m	4,493,917	6,038,757
Dividends per share (Unadj.)	Rs	4.0	8.0

Ratio Analysis for BHARTI AIRTEL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.4x during FY24, from 0.5x during FY23. 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 deteriorated and stood at 1.6x during FY24, from 1.9x during FY23. 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 declined and down at 10.5% during FY24, from 15.9% during FY24. 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 16.6% during FY24, from 15.7% during FY23. 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 declined and down at 7.3% during FY24, from 7.4% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	0.5	0.4
Debtors’ Days	Days	10	12
Interest coverage	x	1.9	1.6
Debt to equity ratio	x	2.0	1.6
Return on assets	%	7.4	7.3
Return on equity	%	15.9	10.5
Return on capital employed	%	15.7	16.6

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 890.3 to Rs 1,485.4, registering a gain of Rs 595.2 or around 66.9%.

Meanwhile, the S&P BSE TECK Index is trading at Rs 19,124.9 (up 0.5%). Over the last one year it has moved up from 13,674.9 to 19,124.9, a gain of 5,450 points (up 39.9%).

Overall, the S&P BSE SENSEX is up 22.8% over the year.

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