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Contents
Introduction................................................................................................................................................... 3
Recently in News ........................................................................................................................................... 3
Financial Introduction ................................................................................................................................... 4
Operations ..................................................................................................................................................... 4
Airtel Sri Lanka....................................................................................................................................... 5
Airtel in Bangladesh............................................................................................................................... 5
Touchtel ................................................................................................................................................. 5
Airtel 3G................................................................................................................................................. 5
Shares in Issue ........................................................................................................................................... 5
Share Holding pattern ................................................................................................................................... 6
Board of Directors ......................................................................................................................................... 8
Exchange Listing ............................................................................................................................................ 8
Dividends Declared........................................................................................................................................ 8
Stock Split ...................................................................................................................................................... 9
Stock Beta and Volatility (β) .......................................................................................................................... 9
Thumb rule of Beta (β) .............................................................................................................................. 9
Calculation ...............................................................................................................................................16
Conclusion ...................................................................................................................................................16
Introduction
Bharti Airtel Limited, a group company of Bharti Enterprises, is among Asia’s leading
integrated telecom services providers with operations in India and Sri Lanka. In South Asia, the
company had an aggregate of over 125.3 million customers as of end December 2009, including
120.23 million mobile customers. Bharti Airtel has been ranked among the six best performing
technology companies in the world by Business Week.
Bharti Airtel is structured as four strategic business units - Mobile, Telemedia, Enterprise
and Digital TV. The mobile business offers services in India and Sri Lanka. The Telemedia
business provides broadband, IPTV and telephone services in 95 Indian cities. The Enterprise
business provides end-to-end telecom solutions to corporate customers and national and
international long distance services to carriers. The Digital TV business provides DTH services
across India. All these services are provided under the Airtel brand. Airtel’s national high-speed
optic fiber network currently spans over 118,337 Rkms across India. Airtel's international
network infrastructure includes ownership of the i2i submarine cable system and consortium
ownership in five global undersea cable systems, SEA-ME-WE 4, EIG, I-ME-WE, AAG and UNITY.
The Bharti Group has a diverse business portfolio and has created global brands in the
telecommunication sector. Bharti has recently forayed into retail business as Bharti Retail Pvt.
Ltd. under a MoU with Wal-Mart for the cash & carry business. It has successfully launched an
international venture with EL Rothschild Group to export fresh agric - products exclusively to
markets in Europe and USA and has launched Bharti AXA Life Insurance Company Ltd under a
joint venture with AXA, world leader in financial protection and wealth management.
The company also deploys, owns and manages passive infrastructure pertaining to
telecom operations under its subsidiary Bharti Infratel Limited. Bharti Infratel owns 42% of
Indus Towers Limited. Bharti Infratel and Indus Towers are the two top providers of passive
infrastructure services in India.
Recently in News
In January, Bharti Airtel bought 70 percent of Warid Telecom’s operations in Bangladesh
and said it would invest $300 million in that market, in addition to the approximately $700
million it paid for the stake.
Bharti Airtel Limited (“Bharti”) and Zain have agreed to enter into exclusive discussions
until 25 March 2010 for the acquisition of Zain’s African unit (Zain Africa BV) based on an
enterprise value of USD 10.7 billion. This potential transaction does not include Zain’s
operations in Morocco and Sudan and remains subject to due diligence, customary regulatory
approvals and signing of final transaction documentation.
Financial Introduction
Bharti Airtel (BHARTI AIRTEL LIMITED) is India's largest telecommunications company
by subscriber base, the total revenues, which were Rs. 373.5 billion in 2008/09. The company
reported a net profit of Rs. 78.5 billion in 2008/09, up 22.87% from Rs. 63.9 billion in 2008/09,
with a return on capital employed at 30.5%in 2008/09, EPS at 41.04 in 2008/09 when compared
to 34.23 in 2007/08 with an increase of 20.9%. Globally, Bharti Airtel is the 3rd largest in-
country mobile operator by subscriber base, behind China Mobile and China Unicom. In India,
the company has a 24.6% share of the wireless services market, followed by 17.7% for Reliance
Communications and 17.4% for Vodafone Essar.
Operations
The businesses at Bharti Airtel have always been structured into three individual
strategic business units (SBU's) - Mobile Services, Airtel Telemedia Services & Enterprise
Services. The mobile business provides mobile & fixed wireless services using GSM technology
across 23 telecom circles while the Airtel Telemedia Services business offers broadband &
telephone services in 95 cities and has recently launched a Direct-to-Home (DTH) service, Airtel
Digital TV, The company provides end-to-end data and enterprise services to the corporate
customers through its nationwide fiber optic backbone, last mile connectivity in fixed-line and
mobile circles, VSATs, ISP and international bandwidth access through the gateways and
landing station.
Partners
Network Equipment Mobile Services Nokia Siemens, Ericsson, Huawei
Telemedia & Long Distance Services Nokia Siemens, Wipro, Cisco,
Alcatel Lucent, ECI, Tellabs
Information Technology IBM
Call Centre Operations IBM Daksh, Hinduja TMT, Teleperformance,
Mphasis, Firstsource & Aegis
Equity Partner {Strategic}
Airtel in Bangladesh
In January 2010, it was announced that the Bangladesh Telecommunications Regulatory
Commission (BTRC) of The People's Republic of Bangladesh had given Bharti Airtel the go ahead
to acquire a 70% stake in the Bangladesh business of Abu Dhabi based Warid Telcom. The latter
had till date investeda total of $600 million, with plans to bring their Bangladesh investments to
the $1 billion mark. Airtel's 70% stake in the company is said to be at a cost of an initial $300
million.
Touchtel
Until September 18, 2004, Bharti provided fixed-line telephony and broadband services
under the Touchtel brand. Bharti now provides all telecom services including fixed-line services
under a common brand "Airtel".
Airtel 3G
Airtel plans to launch the nationwide 3G services in India in the second quarter of 2010.
Shares in Issue
Share holding in %
Particulars % Holding
Promoter's holding
Indian Promoters 45.44
Foreign Promoters 22.39
Sub total 67.84
Non promoter's holding
Institutional investors
Mutual Funds/ UTI 3.06
Banks Fin. Inst. and 4.9
Insurance
Foreign Institutional 17.49
Investors
Sub total 25.45
Other investors
Private Corporate Bodies 4.07
NRI's/OCB's/Foreign Others 0.4
Others 0.13
Sub total 4.6
General public 2.11
Grand total 100
Board of Directors
Sl Name Designation
No
1 Sunil Bharti Mittal Chairman and Managing Director
2 Manoj Kohli Joint Managing Director
3 Akhil Gupta Non Executive Director
4 Chua Sock Koong Non Executive Director
5 Lim Chuan Poh Non Executive Director
6 Tan Yong Choo Non Executive Director
7 Rajan Bharti Mittal Non Executive Director
8 Rakesh Bharti Mittal Non Executive Director
9 Craig Ehrlich Independent Non Executive Director
10 Ajay Lal Independent Non Executive Director
11 Arun Bharat Ram Independent Non Executive Director
12 Bashir Abdulla Currimjee Independent Non Executive Director
13 Mauro Sentinelli Independent Non Executive Director
14 N.Kumar Independent Non Executive Director
15 Nikesh Arora Independent Non Executive Director
16 Pulak Chandan Prasad Independent Non Executive Director
Exchange Listing
Exchange Listings
The Stock Exchange, Mumbai (BSE) Code : 532454
The National Stock Exchange Of India Limited (NSE) Code : BHARTIARTLEQ
Dividends Declared.
In the history of Bharti airtel limited The Company declared a Maiden dividend of 20% of
face value for the year
Stock Split
The company has also splitted the then existing equity shares of Rs. 10/-each into two
equity shares of Rs. 5 each. The shareholders have received the credit of the splitted shares on
31stJuly.
Measurement of Bharti Airtel Limited stock risk relative to the overall NSE (national
Stock Exchange) risk.
NSE Bhartiartl
Sl Close
2
no Date Close returns (X) Price Returns (Y) X XY
1 1-Apr-09 3060.35 614.85
2 2-Apr-09 3211.05 4.924273367 638.7 3.878994877 24.2484682 19.10123116
3 6-Apr-09 3256.6 1.418539107 659.75 3.295757006 2.012253199 4.675160201
4 8-Apr-09 3342.95 2.651538414 662.3 0.386510042 7.030655962 1.024846223
-
5 9-Apr-09 3342.05 -0.026922329 666.05 0.566208667 0.000724812 0.015243656
-
6 13-Apr-09 3382.6 1.21332715 663.3 -0.412881916 1.472162772 0.500960838
7 15-Apr-09 3484.15 3.00212854 685.05 3.279059249 9.012775772 9.844157357
8 16-Apr-09 3369.5 -3.290616076 667.8 -2.518064375 10.82815416 8.285983111
9 17-Apr-09 3384.4 0.442202107 680.55 1.909254268 0.195542704 0.84427626
-
10 20-Apr-09 3377.1 -0.215695544 688.2 1.124090809 0.046524568 0.242461379
-
11 21-Apr-09 3365.3 -0.349412218 719.5 4.548096484 0.122088898 1.589160478
12 22-Apr-09 3330.3 -1.040026149 712.6 -0.958999305 1.081654391 0.997384354
-
13 23-Apr-09 3423.7 2.804552142 707.9 -0.659556553 7.86551272 1.849760745
14 24-Apr-09 3480.75 1.666325905 749.75 5.911851956 2.776642021 9.85107206
-
124 1-Oct-09 5083.4 -0.01081836 435.1 3.904477612 0.000117037 0.042240043
125 5-Oct-09 5003.2 -1.577684227 400.25 -8.009652953 2.48908752 12.63670313
-
126 6-Oct-09 5027.4 0.483690438 359.35 -10.21861337 0.23395644 4.942645576
127 7-Oct-09 4985.75 -0.828460039 358.75 -0.166968137 0.686346036 0.138326429
-
128 8-Oct-09 5002.25 0.330943188 333.95 -6.912891986 0.109523394 2.287774513
-
129 9-Oct-09 4945.2 -1.140486781 343.3 2.799820332 1.300710098 3.193158078
130 12-Oct-09 5054.25 2.205168648 351.25 2.315758812 4.862768768 5.106638728
-
131 14-Oct-09 5118.2 1.265271801 340.15 -3.160142349 1.60091273 3.998439001
132 15-Oct-09 5108.85 -0.182681411 325.1 -4.424518595 0.033372498 0.808277302
133 16-Oct-09 5142.15 0.651810094 326.2 0.338357428 0.424856399 0.220544787
-
134 17-Oct-09 5141.8 -0.006806491 332.85 2.038626609 4.63283E-05 0.013875895
135 20-Oct-09 5114.45 -0.531914894 328.65 -1.261829653 0.282933454 0.671185986
-
136 21-Oct-09 5063.6 -0.994241805 332.7 1.232314012 0.988516767 1.225218108
-
137 22-Oct-09 4988.6 -1.481159649 337.05 1.30748422 2.193833907 1.936592869
-
138 23-Oct-09 4997.05 0.169386201 331.05 -1.780151313 0.028691685 0.301533067
139 26-Oct-09 4970.9 -0.523308752 330.65 -0.12082767 0.27385205 0.063230177
140 27-Oct-09 4846.7 -2.498541512 306.95 -7.167699985 6.242709685 17.90879595
-
141 28-Oct-09 4826.15 -0.423999835 317.1 3.30672748 0.17977586 1.402051906
142 29-Oct-09 4750.55 -1.566466024 311.8 -1.671397036 2.453815803 2.618186668
143 30-Oct-09 4711.7 -0.817800044 292.85 -6.077613855 0.668796912 4.970272879
-
144 3-Nov-09 4563.9 -3.136872042 300.4 2.578111661 9.839966207 8.087206391
145 4-Nov-09 4710.8 3.21873836 305.6 1.7310253 10.36027663 5.571717533
146 5-Nov-09 4765.55 1.162222977 319.3 4.482984293 1.350762248 5.210227351
147 6-Nov-09 4796.15 0.642108466 320.05 0.234888819 0.412303282 0.150824099
148 9-Nov-09 4898.4 2.131918309 307.55 -3.905639744 4.545075678 -8.32650488
10-Nov-
149 09 4881.7 -0.34092765 293.4 -4.600877906 0.116231662 1.568566492
11-Nov-
150 09 5003.95 2.504250568 299.95 2.232447171 6.27127091 5.590607097
12-Nov-
151 09 4952.65 -1.0251901 298.95 -0.333388898 1.051014741 0.341786998
13-Nov-
152 09 4998.95 0.934853058 302.1 1.053687908 0.873950241 0.985043363
16-Nov-
153 09 5058.05 1.182248272 302.75 0.215160543 1.397710977 0.25437318
17-Nov- -
154 09 5062.25 0.083035953 296.9 -1.932287366 0.006894969 0.160449322
18-Nov-
155 09 5054.7 -0.149143168 296 -0.303132368 0.022243684 0.045210122
19-Nov-
156 09 4989 -1.299780402 293.4 -0.878378378 1.689429094 1.141699002
20-Nov- -
157 09 5052.45 1.271797956 288.75 -1.584867076 1.61747004 2.015630707
23-Nov- -
158 09 5103.55 1.011390514 275.25 -4.675324675 1.022910771 4.728579024
24-Nov- -
159 09 5090.55 -0.254724652 282.5 2.633969119 0.064884649 0.670936868
25-Nov- -
160 09 5108.15 0.345738673 281.75 -0.265486726 0.11953523 0.091789028
26-Nov-
161 09 5005.55 -2.008554956 280.45 -0.461401952 4.034293012 0.926751178
27-Nov- -
162 09 4941.75 -1.27458521 283.65 1.141023355 1.624567459 1.454331493
30-Nov-
163 09 5032.7 1.840441139 299.55 5.605499736 3.387223587 10.31659232
164 1-Dec-09 5122 1.774395454 304.55 1.669170422 3.148479226 2.961768409
165 2-Dec-09 5123.25 0.024404529 304.75 0.065670662 0.000595581 0.001602662
166 3-Dec-09 5131.7 0.164934368 306.8 0.672682527 0.027203346 0.110948467
-
167 4-Dec-09 5108.9 -0.444297211 310.1 1.075619296 0.197400012 0.477894654
-
168 7-Dec-09 5066.7 -0.826009513 316.4 2.031602709 0.682291715 1.678123164
169 8-Dec-09 5147.95 1.603607871 328.55 3.840075853 2.571558204 6.157975864
-
170 9-Dec-09 5112 -0.698336231 331.2 0.806574342 0.487673491 0.563260086
171 10-Dec-09 5134.65 0.443075117 342.4 3.381642512 0.19631556 1.498321653
172 11-Dec-09 5117.3 -0.337900344 331.55 -3.168808411 0.114176642 1.070741451
173 14-Dec-09 5105.7 -0.226682039 319.55 -3.619363595 0.051384747 0.820444721
174 15-Dec-09 5033.05 -1.422919482 316.85 -0.844938194 2.024699853 1.202279018
175 16-Dec-09 5042.05 0.178818013 325.5 2.729998422 0.031975882 0.488172893
176 17-Dec-09 5041.75 -0.005949961 324.3 -0.368663594 3.5402E-05 0.002193534
177 18-Dec-09 4987.7 -1.072048396 317.85 -1.988899167 1.149287763 2.132196162
178 21-Dec-09 4952.6 -0.703731179 310.1 -2.438257039 0.495237572 1.7158775
179 22-Dec-09 4985.85 0.671364536 321.95 3.821347952 0.45073034 2.565517494
180 23-Dec-09 5144.6 3.18401075 326.25 1.33561112 10.13792446 4.252600164
-
181 24-Dec-09 5178.4 0.656999572 321.15 -1.563218391 0.431648438 1.027033814
182 29-Dec-09 5187.95 0.184419898 325.95 1.494628678 0.034010699 0.275639268
183 30-Dec-09 5169.45 -0.356595572 325.7 -0.07669888 0.127160402 0.027350481
184 31-Dec-09 5201.05 0.611283599 329.75 1.243475591 0.373667638 0.760116234
-
185 4-Jan-10 5232.2 0.598917526 325.2 -1.379833207 0.358702203 0.826406291
186 5-Jan-10 5277.9 0.87343756 330.35 1.583640836 0.762893171 1.383211388
187 6-Jan-10 5281.8 0.073893026 326.85 -1.059482367 0.005460179 -
0.078288358
-
188 7-Jan-10 5263.1 -0.354045969 329.4 0.780174392 0.125348548 0.276217599
189 8-Jan-10 5244.75 -0.348653835 325.05 -1.320582878 0.121559497 0.460426285
190 11-Jan-10 5249.4 0.088660089 328.95 1.199815413 0.007860611 0.106375741
191 12-Jan-10 5210.4 -0.742942051 322.25 -2.036783706 0.55196289 1.513212263
-
192 13-Jan-10 5233.95 0.451980654 318.4 -1.194724593 0.204286512 0.539992403
-
193 14-Jan-10 5259.9 0.49580145 318.05 -0.109924623 0.245819078 0.054500788
194 15-Jan-10 5252.2 -0.146390616 317.4 -0.204370382 0.021430212 0.029917906
195 18-Jan-10 5274.85 0.431247858 320.7 1.039697543 0.185974715 0.448367338
196 19-Jan-10 5225.65 -0.932727945 320.55 -0.046772685 0.869981419 0.04362619
-
197 20-Jan-10 5221.7 -0.075588683 331.5 3.416003744 0.005713649 0.258211223
198 21-Jan-10 5094.15 -2.442691078 322.4 -2.745098039 5.966739701 6.705426488
199 22-Jan-10 5036 -1.141505452 322.15 -0.077543424 1.303034698 0.088516242
-
200 25-Jan-10 5007.9 -0.557982526 330.9 2.716126028 0.311344499 1.515550862
201 27-Jan-10 4853.1 -3.091116037 322.9 -2.417648837 9.554998352 7.47323309
-
202 28-Jan-10 4867.25 0.291566215 313.65 -2.864663983 0.085010858 0.835239236
-
203 29-Jan-10 4882.05 0.304073142 306.4 -2.311493703 0.092460476 0.702863153
204 1-Feb-10 4899.7 0.361528456 311.2 1.566579634 0.130702825 0.566363117
205 2-Feb-10 4830.1 -1.420495132 307.65 -1.140745501 2.017806421 1.620423432
206 3-Feb-10 4931.85 2.106581644 309 0.438810336 4.437686224 0.9243898
207 4-Feb-10 4845.35 -1.753905735 304.1 -1.585760518 3.076185328 2.781274467
208 5-Feb-10 4718.65 -2.614878182 300.05 -1.33179875 6.837587908 3.482491495
209 6-Feb-10 4757.25 0.818030581 300.4 0.116647225 0.669174031 0.095420998
210 8-Feb-10 4760.4 0.066214725 308.35 2.646471372 0.00438439 0.175235374
211 9-Feb-10 4792.65 0.677464079 313.15 1.556672612 0.458957578 1.054589777
-
212 10-Feb-10 4757.2 -0.739674293 315.3 0.68657193 0.54711806 0.507839607
-
213 11-Feb-10 4826.85 1.464096527 314.5 -0.25372661 2.143578641 0.371480248
214 15-Feb-10 4801.95 -0.515864384 285.6 -9.189189189 0.266116062 4.740375417
215 16-Feb-10 4855.75 1.12037818 271.6 -4.901960784 1.255247266 -5.4920499
216 17-Feb-10 4914 1.199608711 279.15 2.77982327 1.43906106 3.33470021
-
217 18-Feb-10 4887.75 -0.534188034 281.9 0.985133441 0.285356856 0.526246496
218 19-Feb-10 4844.9 -0.8766815 278.8 -1.099680738 0.768570452 0.964069758
-
219 22-Feb-10 4856.4 0.237363 276.9 -0.681492109 0.056341194 0.161761012
220 23-Feb-10 4870.05 0.281072399 280.1 1.15565186 0.079001694 0.324821841
221 24-Feb-10 4858.6 -0.235110522 275.95 -1.481613709 0.055276958 0.348342973
Calculation
Formula
Where
∑X = 51.90314369
∑Y = -49.49454604
∑XY = 812.874292
∑X2 = 910.0283693
n = 222
Solve
β = 0.918200205
Conclusion
The Beta (β) value of Bharti Airtel Limited is 0.9182, this means the share price of Bharti
Airtel Limited is less volatile with comparison to market, If there is 1% change in market index
causes approximately 0.9182% change in the stock price.