May 2, 2016
Rating matrix
Rating
Target
Target Period
Potential Upside
What’s changed?
Target
EPS FY17E
EPS FY18E
Rating
Quarterly performance
:
:
:
: Buy
| 130
12 months
10%
Unchanged
Changed from | 4.8 to | 4.3
Introduced at | 6.3
Unchanged
Revenue
EBITDA
Q4FY16 Q4FY15 YoY (%) Q3FY16 QoQ (%)
9,483.9
8,422.5
12.6
9,009.7
3,616.0 3,064.5 18.0 3,128.5
5.3
15.6
EBITDA (%) 38.1
36.4 174 bps 34.7 340 bps
PAT 575.6 941.8 (38.9) 764.2 -24.7
Key financials
| Crore
Net Sales
EBITDA
FY15 FY16 FY17E FY18E
31,571 35,981 39,633 43,466
10,812 13,030 14,340 15,791
PAT 3,193 3,080 1,542 2,253
EPS (in |) 8.9 8.6 4.3 6.3
Valuation summary
FY15
P/E 12.5
Target P/E
EV / EBITDA
FY16
13.0
FY17E
26.0
FY18E
17.8
14.6 15.2 30.4 20.8
6.0
5.9
5.2
4.6
P/BV
RoNW (%)
RoCE (%)
Stock data
1.7 1.6 1.5 1.4
13.9
12.0
5.7
7.7
11.3 9.4 8.8 10.1
Particular
Market Capitalization (| Crore)
Amount
42,484.2
Total Debt (FY16) (| Crore)
Cash (FY16) (| Crore)
38,214.1
781.9
79,916.2
187/ 97
3,597.8
10.0
EV (| Crore)
52 week H/L
Equity capital
Face value
Price performance
Bharti Airtel
RCOM
1M
4.1
14.1
18.8
Idea
Research Analysts
Bhupendra Tiwary bhupendra.tiwary@icicisecurities.com
3M
25.3
-6.0
14.5
6M
5.9
-23.5
-11.3
12M
-4.8
-3.3
-32.9
Sneha Agarwal sneha.agarwal@icicisecurities.com
| 118
• Idea reported a 1.2% QoQ increase in total minutes on the network to 201.6 billion minutes, owing to lower-than-expected subscriber growth & MOU. Voice revenues came in at | 6674.0 crore, up 5.8% QoQ where the beat was mainly due to voice tariff rise to 33.3 paisa (up 4.4% QoQ) vs. an expectation of 31.5 paisa.
Data revenues exhibited 4.4% QoQ growth to | 1871 crore, forming 20.1% of mobility revenues led by increase in data tariffs to 22.9 paisa, up 2.7% QoQ. This was surprising in times of heightened competition. Data volume growth, however, remained subdued at 1.5% QoQ to 82 billion MB
• EBITDA came in at | 3616.0 crore, much higher than our expectations of | 3140.8 crore owing to higher revenues as well as huge savings on several costs front such as lower marketing expenses and network & operating costs. EBITDA margins came in at 38.1% (up 340 bps QoQ), higher than the estimated 34.0%
• PAT came in at | 575.6 crore vs. expectation of | 347.4 crore wherein the beat at the PAT level was on better fundamentals
Tariff increase bold move; volumes should be stable, going ahead!
Voice volume growth for Idea was muted at 1.2% QoQ in Q4FY16 vs.
Airtel, which posted 6.0% QoQ growth. Idea reduced freebies in its new circles to come at par with the leader on pricing. Though the reduction of promotions is a positive move to aid profitability, elasticity towards price could impact volumes negatively. While Idea indicated at following suit with the competition in terms of pricing, it pointed towards focusing on profitable minutes versus aggressive subscriber additions. The company also indicated that it is looking to garner market share from the exits/scale down by some smaller players. As per the management, currently 28% of revenues are outside top three players. Such exits would help in market share benefits for Idea. We have factored in voice volume and voice
ARPM CAGR of 5.6% and 2.4% in FY16-18E to 877 billion minutes and
34.0 paisa, respectively.
Slow uptake in mobile broadband concerning, RJio fears linger
Of the 60.4 million smart-phone users in the company’s network only 23 million access 3G/4G services while the overall data subscriber additions has been tepid. In the quarter, Idea posted 4.6% de-growth in its data volumes. Though some of the decline can be attributed to the tariff hike, the slowdown is alarming. Given the huge investments towards data and impending outlay in upcoming auctions, data volume growth slowdown is a concern. Moreover, the impending Reliance Jio launch poses a further threat to the overall industry wherein there could be higher churn if entrant resorts to disruptive pricing. We expect data tariffs to decline at
6.1% CAGR in FY16-18E, leading to data revenue growth of 22.6% to
| 10336.6 crore. Disruptive pricing by Reliance Jio remains a downside risks to our estimates.
Maintain target price of | 130, await mobile broadband pick up
We have revised our estimates for Idea factoring in higher depreciation and interest emanating from the spectrum. The company’s indication at exercising circle wise discretion in upcoming auctions is reassuring albeit we have not factored in any spectrum related payouts now. We highlight that mobile broadband pick-up remains a requisite to justify huge investments. We maintain our BUY rating with a target price of | 130.
ICICI Securities Ltd | Retail Equity Research

Variance analysis
Revenue
Other Income
Employee Expenses
Marketing Expenses
Network operating expenditure
License and WPC Charges
Roaming & Access Charges
Q4FY16 Q4FY16E Q4FY15 Q3FY16 YoY (%) QoQ (%) Comments
9,483.9 9,235.7 8,422.5 9,009.7
12.6
5.3 Revenues came in higher-than-expected as the company has cut down on its promotional disocunts and freebies resulting in higher realisations and, hence, better revenues
40.2
15.0
186.4
30.8
-78.4
30.7
430.6
828.6
427.2
966.8
1,099.5 1,057.5
386.0
807.5
411.4
912.0
2,087.6 2,167.7 1,791.5 2,095.4
949.9 1,034.8
1,159.9 1,222.3 1,238.5 1,190.3
11.6
2.6
16.5
15.8
-6.3
4.7
-9.1 The company has been on a cost rationalisation spree. Hence ,there has been a discretionary reduction in the marketing expenses
-0.4
6.2
-2.6 The change in the minute composition and rolling out of own networks in certain circles has resulted in savings of costs from roaming agreements
EBITDA
EBITDA Margin (%)
Depreciation
Interest
Total Tax
PAT
Key Metrics
Subscribers (Million)
ARPU (Rs)
MoU (Rs)
ARPM (Rs)
3,616.0 3,140.8 3,064.5 3,128.5
18.0
38.1
34.0
36.4
34.7 174 bps 340 bps
1,973.7 1,886.0 1,487.7 1,623.1
32.7
21.6 The quarter has seen incremental amortisation charge on account of the newly acquired March spectrum put to use
808.1
737.0
291.7
365.7
15.6 Lower-than-expected costs as the company strongly focuses on cost rationalisation has resulted in higher-than-expected EBITDA
298.9
575.6
185.4
347.4
529.8
941.8
406.3
764.2
177.1
-43.6
-38.9
121.0
The interest charge also had an additional impact from the spectrum put to use in the quarter
-26.4
-24.7 The PAT has been higher due to overall improvement in the fundamental performance of the company
175.1
176.0
157.8
171.9
10.9
179
387.0
46.4
176
392.0
44.8
179
400.0
44.8
176
393.0
44.8
0.0
-3.3
3.6
1.8 Gross additions have been slightly lower than expectations as the company has cut down on its promotional minutes and freebies in a bid to focus on profitability
1.7
-1.5 The cut of down of freebies has limited the MOU growth in the quarter
3.6 The company took a bold step in increasing tariifs in the line with other peers in the data segment and cutting down on freebies in the voice market leading to an overall ARPM improvement
Source: Company, ICICIdirect.com Research
Change in estimates
(| Crore)
Revenue
Old
FY17E
New % Change
39,343.9 39,632.9
0.7
FY18E
Introd.
43,466.2
EBITDA
EBITDA Margin (%)
PAT
13,689.2 14,339.5
4.8
34.8
36.2
139 bps
1,738.2
1,542.1
-11.3
15,790.8
36.3
2,252.5
EPS (|) 4.8
4.3
Source: Company, ICICIdirect.com Research
Assumptions
Wireless Subscribers (Mn)
FY15
157.8
-11.3
6.3
Current Introd.
FY16 FY17E FY18E
175.1
183.5
192.5
Blended ARPU
Total Minutes
MoU per subscriber
ARPM (Paisa)
176.5
683.4
388.4
45.6
Source: Company, ICICIdirect.com Research
177.2
786.0
394.0
45.0
181.5
833.0
387.2
46.9
190.1
877.2
388.8
48.9
Comments
We have slightly revised our realisation upwards in line with the company's commentary to stick to profitable minutes
The cost reduction measures undertaken by the company as visible in the quarter has made us revise our EBITDA estimates upwards
The incremental depreciation and interest charge with respect to spectrum would dent the overall
PAT
Earlier Comments
FY17E
185.4
We have slightly toned down our subscriber addition estimates as the company guided for concentration on profitable minutes versus subscriber addition
180.4
845.8
The minute growth assumption has been reduced as the company has been reducing promotional minutes and cutting down on voice freebies
390.1
45.8
ICICI Securities Ltd | Retail Equity Research Page 2

ICICI Securities Ltd | Retail Equity Research
Idea shifts focus from aggressive subscriber additions …
Idea has exhibited higher than industry subscriber and revenue growth in the past few years. Subscribers have grown at 28.2% CAGR (FY08-16) while revenue has grown at 23.1% CAGR in the same period. The company indicated it would be focusing on taking price hikes in the coming quarters as opposed to being aggressive on subscriber additions.
We expect Idea to see subscriber growth of 4.8% CAGR in FY16-18E to
192.5 million subscribers with major growth coming in from new circles.
Exhibit 1: Subscriber details trends
250
200
150
100
50
0
135.8
FY14
157.8
FY15
175.1
FY16
Subscribers
Source: Company, ICICIdirect.com Research
183.5
FY17E
192.5
FY18E
Idea guides at matching market leader in tariffs...
Voice volume growth for Idea was muted at 1.2% QoQ in Q4FY16 vs.
Airtel, which posted a 6.0% QoQ growth. The company reduced freebies in its new circles to come at par with the leader on pricing. Though the reduction of promotions is a positive move to aid profitability, elasticity towards price could impact volumes negatively. While Idea indicated at following suit with the competition in terms of pricing, it pointed towards focusing on profitable minutes versus aggressive subscriber additions.
The company also indicated that it is looking to garner market share from the exits/scale down by some smaller players. As per the management, currently 28% of revenues are outside the top three players. Such exits would help result in market share benefits for Idea. We have factored in voice volume and voice ARPM CAGR of 5.6% and 2.4% over FY16-18E to
877 billion minutes and 34.0 paisa, respectively.
Exhibit 2: ARPM trends
450
400
350
300
250
200
150
100
50
0
0.44
168
381
FY14
0.46
176
388
FY15
0.45
177
394
FY16
0.47
181
387
FY17E
0.49
190
389
FY18E
0.6
0.5
0.5
0.4
0.4
0.3
MoU
Source: Company, ICICIdirect.com Research
ARPU ARPM
Page 3

ICICI Securities Ltd | Retail Equity Research
600
500
400
300
200
100
0
Slow uptake in mobile broadband concerning, RJio fears linger
Of the 60.4 million smart-phone users in the company’s network only 23 million access 3G/4G services. Overall data subscriber additions have been tepid. In the quarter, Idea posted 4.6% de-growth in its data volumes. Though some of the decline can be attributed to the tariff hike, the slowdown is alarming. Given the huge investments towards data and impending outlay in upcoming auctions, data volume growth slowdown is a concern. Moreover, the impending Reliance Jio launch poses a further threat to the overall industry wherein there could be higher churn if the entrant resorts to disruptive pricing. We expect data tariffs to decline at 6.1% CAGR in FY16-18E, hence, leading to data revenue growth of 22.6% to | 10336.6 crore. Disruptive pricing by Reliance Jio remains a downside risks to our estimates.
Exhibit 3: Data subscribers, total data traffic
33.4
44.0
51.1
57.1
70.0
60.0
50.0
40.0
30.0
20.0
-
10.0
FY15 FY16
Data Traffic (Bn MB)
FY17E FY18E
Data Subscribers (Mn) - RHS
Source: Company, ICICIdirect.com Research
Idea focus on profitability, margins to remain firm
Idea has adopted a strategy of focusing on profitability by cutting down on voice freebies and promotional activities, which would, in turn, aid margins. Though there would be higher network costs as the company props up its network capex, the company has undertaken other cost rationalisation measures. We expect margins to remain firm at 36.2% and
36.3% in FY17E and FY18E, respectively.
Exhibit 4: EBITDA and PAT margins trend
40.0
35.0
30.0
25.0
20.0
15.0
10.0
5.0
0.0
31.4
7.4
34.2
10.1
36.2
8.6
36.2
3.9
36.3
5.2
FY14 FY15 FY16 FY17E FY18E
EBITDA Margin PAT Margin
Source: Company, ICICIdirect.com Research
Page 4

Other takeaways from conference call
• Upcoming auctions: The management indicated at exercising circle wise discretion in upcoming auctions. It indicated that Gujarat and
UP (W) are examples of such circles where the mobile broadband presence is missing for Idea and is critical for the business. The cancellation of the Videocon deal was attributed to the supply of spectrum in the upcoming auction
• Voice tariffs: The company guided at following suit with competition in regard to tariffs, going ahead. It has significantly clamped down on promotional minutes for both existing and new subscribers. Such pricing improvement is visible in the quarter. The major improvement has come from new circles. The company expects
EBITDA break-even in most new circles by FY18E
• Mobile broadband growth: Data volume growth lags behind the pace of investments made by operators. The management emphasised that data growth would be driven by subscriber additions as out of
60 million subscribers on the company’s network with a 3G/4Genabled smartphone, only 23 million use it to access 3G/4G. Price fall in the data segment would continue in FY17 as well, similar to FY16.
Higher speed 4G services could also aid volumes, going ahead, as
4G data subscriber consume 1.5-1.8x data used by 3G subscribers
ICICI Securities Ltd | Retail Equity Research Page 5

We have revised our estimates for Idea factoring in higher depreciation and interest emanating from the spectrum. The company’s indication at exercising circle wise discretion in upcoming auctions is reassuring albeit we have not factored in any spectrum related payouts now. We highlight that mobile broadband pick-up remains a requisite to justify the huge investments. We maintain our BUY rating with a target price of | 130.
Exhibit 5: DCF Assumptions
Particulars Amount
WACC
Revenue CAGR over FY16E - FY22E
PV of Cash Flow Till Terminal Year
Terminal Growth
Present Value of terminal cash flow
PV of firm
Less: Net Debt
Total present value of the Equity (excluding current cash)
Number of Equity Shares outstanding
DCF - Target price (|)
10.9%
9.0%
6,382.9
4.0%
77,082.1
83,465.0
36,660.4
46,804.7
360.0
130
Source: Company, ICICIdirect.com Research
Exhibit 6: Valuations
Sales Growth EPS Growth
FY15
FY16
FY17E
FY18E
PE EV/EBITDA RoNW RoCE
(| cr) (%) (|) (%) (x) (x) (%) (%)
31,570.9 19.1 8.9 49.7 13.3 6.3 13.9 11.3
35,981.0
14.0
8.6
-3.6
13.8
6.1
12.0
9.4
39,632.9 10.1 4.3 (49.9) 27.6 5.4 5.7 8.8
43,466.2
9.7
6.3
46.1
18.9
4.8
7.7
10.1
Source: Company, ICICIdirect.com Research
ICICI Securities Ltd | Retail Equity Research Page 6

Company snapshot
250
100
50
0
200
150
Target Price | 130
Source: Bloomberg, Company, ICICIdirect.com Research
Key events
Feb-12 Supreme Court cancels licenses, which include Idea's licenses in seven circles. It gives way to lower competition in the industry
Nov-12 Spectrum auction post license cancellation takes place. These auctions reduce several players to regional operators. Idea acquires licenses in the cancelled circles
Jun-13 Pricing power returns to operators. ARPMs start showing upward momentum. Idea increases its ARPM from 41 paisa at the end of FY13 to 44.9 paisa by Q3FY14
Feb-14 Spectrum auctions held in the 900 and1800 MHz band while Idea purchases spectrum in 11 circles at an outlay of | 10716 crore
Jun-14
Jul-14
Mar-15
Dec-15
Jan-15
Idea Cellular succesfully completes its QIP of | 3000 crore and allots 223.9 million fresh equity shares at an issue price of | 134 per equity share, including | 124 as a premium on per share
Idea raises | 750 crore by making preferential allotment to Axiata Group. Axiata was alloted 51.8 crore equity shares at | 144.68 per equity share
Spectrum auctions held in the 800, 900, 1800 and 2100 Mhz band. Idea participates in auctions and wins back all its expiring spectrum with a total of 79.4 MHz won. The total payout for Idea is | 30307 crore and the immediate payout is | 7790 crore
Enters into agreement with Videocon to purchase its spectrum in the circles of UP(W) and Gujarat for an outlay of | 3310 crore
Launches its high-speed 4G LTE network across four South India telecom service areas of Andhra Pradesh, including Telangana, Karnataka, Kerala, and Tamil Nadu.
Further, Idea on 14 January, 2016 extends its 4G services to telecom circles of Madhya Pradesh and Chhattisgarh, Punjab and Haryana, and now cover 183 towns across seven circles for high-speed LTE services
Source: Company, ICICIdirect.com Research
Top 10 Shareholders
Rank Name
1
2
3
Aditya Birla Group
Axiata Group Bhd
Providence Equity Partners LLC
7
8
9
4
5
6
Stewart Investors
Capital World Investors
Schroder Investment Management Ltd. (SIM)
ICICI Prudential Life Insurance Company Ltd.
The Vanguard Group, Inc.
First State Investments (Singapore)
10 BNP Paribas Investment Partners Asia Ltd.
Shareholding Pattern
Latest Filing Date % O/S Position (m)n Change (m)
31-Dec-15 42.23
31-Dec-15 19.77
31-Dec-15 6.80
1,520.4
712.0
245.0
0.0
0.0
0.0
(in %) Mar-15 Jun-15 Sep-15 Dec-15 Mar-16
Promoter 42.27
42.26
42.25
42.24
42.24
FII
DII
24.60
24.43
24.05
24.07
24.20
4.63
4.73
5.12
5.35
5.15
Others 28.50
28.58
28.58
28.34
28.41
31-Dec-14 2.75
31-Mar-16 2.62
29-Feb-16 2.16
31-Dec-15 1.80
31-Dec-15 1.71
29-Feb-16 1.62
31-Dec-15 1.30
99.1
94.4
77.9
64.7
61.7
58.4
46.9
-21.0
8.4
-0.1
1.1
0.0
4.0
4.5
Source: Reuters, ICICIdirect.com Research
Recent Activity
Investor name
Capital World Investors
BNP Paribas Investment Partners Asia Ltd.
First State Investments (Singapore)
Buys
BlackRock Institutional Trust Company, N.A.
Dimensional Fund Advisors, L.P.
Source: Reuters, ICICIdirect.com Research
ICICI Securities Ltd | Retail Equity Research
Sells
Value Shares Investor name
+13.91M
+8.36M Capital Research Global Investors
+9.71M
+4.48M Norges Bank Investment Management (NBIM)
+6.11M
+4.00M Union Investment Privatfonds GmbH
+3.11M
+1.87M Wellington Management Company, LLP
+2.79M
+1.83M Eastspring Investments (Singapore) Limited
Value Shares
-40.20M
-24.17M
-10.48M
-6.66M
-4.83M
-2.92M
-2.79M
-2.75M
-1.29M
-1.27M
Page 7

Profit and loss statement
(Year-end March)
Total operating Income
Growth (%)
Employee Expenses
Roaming & Access Charges
Network operating expenditure
License and WPC Charges
SG&A Expenses
Other Costs
Total Operating Expenditure
EBITDA
FY15 FY16 FY17E
| Crore
FY18E
31570.9
35981.0
39632.9
43466.2
19.1
1,529.9
4,731.3
7,195.7
3,535.2
14.0
1,659.9
4,643.6
8,170.7
4,150.8
10.1
4,792.6
4,498.3
9.7
1,951.0
5,047.0
9,187.6
10,523.4
4,933.4
2,878.3
888.9
3,353.3
972.8
3,821.3
1,190.5
3,930.5
1,290.1
20759.2
22951.0
25293.4
27675.3
10811.7
13030.0
14339.5
15790.8
Growth (%)
Depreciation
Interest
Other Income
Non Operating Expenses
PBT
MI/ Profit from associates
Total Tax
PAT
Growth (%)
EPS (|)
Source: Company, ICICIdirect.com Research
Balance sheet
(Year-end March) FY15
Liabilities
Equity Capital
Reserve and Surplus
Others
Total Shareholders funds
Total Debt
Deferred Tax Liability
Others
Total Liabilities
Assets
Gross Block
Less: Acc Depreciation
Net Block
Capital WIP
Total Fixed Assets
Investments
Inventory
Debtors
Loans and Advances
Other Current Assets
Cash
Total Current Assets
Creditors
Provisions
Total Current Liabilities
29.7
5303.6
1045.2
469.7
0.0
4932.5
0.0
1739.6
3192.9
62.3
8.9
20.5
6650.8
1881.6
227.1
0.0
4724.7
0.0
1644.7
3079.9
-3.5
8.6
FY16
10.1
8204.0
3939.1
140.0
10.1
8693.2
3844.7
160.0
0.0
0.0
2336.5
0.0
794.4
1542.1
-49.9
4.3
FY17E
3412.9
1160.4
2252.5
| Crore
0.0
46.1
6.3
FY18E
3,597.8
3,600.5
3,600.5
3,600.5
19,429.5
22,165.1
23,623.0
25,707.0
1.9
1.9
1.9
1.9
23,029.2
25,767.5
27,225.4
29,309.4
26,859.1
38,214.1
37,364.1
36,364.1
1,901.5
963.3
3,071.4
3,274.0
3,071.4
3,274.0
3,071.4
3,274.0
52,753.1
70,327.0
70,934.8
72,018.9
62,461.0 101,870.0 107,468.6 115,468.6
26,927.4
33,578.2
41,782.2
50,475.4
35,533.6
68,291.8
65,686.4
64,993.2
5,140.5
6,098.6
8,500.0
8,500.0
40,674.1
74,390.4
74,186.4
73,493.2
11,532.8
1,378.9
1,378.9
2,378.9
71.0
106.5
117.3
1,297.1
128.7
978.9
5,504.2
106.2
1,553.7
8,214.0
1,177.6
4,784.8
2.0
781.9
6,852.8
5,270.4
2.2
2,228.3
1,422.6
5,780.2
2.4
3,671.7
8,915.4
11,005.5
6,838.1
11,248.1
12,389.7
13,588.1
875.6
1,075.1
1,184.2
1,298.7
7,713.7
12,323.1
13,573.9
14,886.8
Net Current Assets
Other Non Current Assets
Application of Funds
500.3
-5,470.4
-4,658.5
-3,881.2
45.8
27.8
27.8
27.8
Source: Company, ICICIdirect.com Research
52,753.1
70,326.7
70,934.6
72,018.6
.
ICICI Securities Ltd | Retail Equity Research
Cash flow statement
(Year-end March)
Profit after Tax
Add: Depreciation
Add: Interest paid
(Inc)/dec in Current Assets
Inc/(dec) in CL and Provisions
Others
CF from operating activities
(Inc)/dec in Investments
(Inc)/dec in Fixed Assets
Others
FY15
3,192.9
5,303.6
1,045.2
(1,672.7)
1,054.3
FY16
3,079.9
6,650.8
1,881.6
589.4
4,609.5
FY17E
1,542.1
8,204.0
3,939.1
(616.2)
1,250.7
| Crore
FY18E
2,252.5
8,693.2
3,844.7
(646.8)
1,312.9
0.0
0.0
0.0
0.0
8,923.4
16,811.2
14,319.7
15,456.5
-11,311.2
10,153.7
0.0
-1,000.0
-4,962.5
-40,367.0
-8,000.0
-8,000.0
227.6
3,498.6
0.0
0.0
CF from investing activities
Issue/(Buy back) of Equity
Inc/(dec) in loan funds
Dividend paid & dividend tax
Interest Paid
Others
CF from financing activities
Net Cash flow
Opening Cash
Closing Cash
Source: Company, ICICIdirect.com Research
-16,046.0
-26,714.8
-8,000.0
-9,000.0
278.2
2.7
0.0
0.0
5,611.8
-12,725.0
-383.8
-260.0
-850.0
-168.5
-1,000.0
-168.5
-1,045.2
-1,881.6
-3,939.1
-3,844.7
4,027.3
23,995.7
84.3
0.0
8,488.3
9,131.7
-4,873.2
-5,013.2
1,365.6
188.1
1,553.7
-771.9
1,553.7
781.9
1,446.5
781.9
2,228.3
1,443.4
2,228.3
3,671.7
Key ratios
(Year-end March)
Per share data (|)
EPS
Cash EPS
BV
DPS
Cash Per Share
Operating Ratios
EBITDA Margin (%)
EBIT Margin (%)
PAT Margin (%)
Inventory days
Debtor days
Creditor days
Return Ratios (%)
RoE
RoCE
RoIC
Valuation Ratios (x)
P/E
EV / EBITDA
EV / Net Sales
Market Cap / Sales
Price to Book Value
Solvency Ratios
Debt/EBITDA
Debt / Equity
Current Ratio
Quick Ratio
FY15
Source: Company, ICICIdirect.com Research
13.9
11.3
12.0
13.3
6.3
2.1
1.3
1.8
8.9
23.6
64.0
1.1
4.3
34.2
17.4
10.1
0.8
11.3
79.1
2.5
1.2
0.9
0.9
5.7
8.8
10.2
27.6
5.4
2.0
1.1
1.6
36.2
15.5
3.9
1.1
11.9
114.1
2.6
1.4
0.5
0.5
FY17E
4.3
27.1
75.6
0.5
6.2
12.0
9.4
10.1
13.8
6.1
2.2
1.2
1.6
36.2
17.7
8.6
1.1
11.9
114.1
2.9
1.5
0.5
0.5
FY16
8.6
27.0
71.6
0.7
2.2
7.7
10.1
11.9
18.9
4.8
1.7
1.0
1.4
36.3
16.3
5.2
1.1
11.9
114.1
2.3
1.2
0.5
0.5
FY18E
6.3
30.4
81.4
0.5
10.2
Page 8

Sector / Company
Bharti Airtel (BHATE)
CMP
(|) TP(|) Rating
M Cap EPS (|)
(| Cr) FY15 FY16E FY17E
364 435 Buy 145,345 13.0
13.7
16.3
Bharti Infratel (BHAINF)
Idea Cellular (IDECEL)
Tata Comm. (VIDSAN)
375 500 Buy 71,088 10.5
12.1
13.9
118 130 Buy 42,484
413 500 Buy 11,766
Source: Company, ICICIdirect.com Research
8.9
8.6
4.3
0.0
-0.5
16.2
P/E (x) EV/EBITDA (x) RoCE (%) RoE (%)
FY15 FY16E FY17E FY15 FY16E FY17E FY15 FY16E FY17E FY15 FY16E FY17E
28.0
26.5
22.3
6.9
6.9
6.0 10.3
9.4
11.1
9.7
6.1
9.3
35.6
31.1
27.0 13.7
12.9
11.6 15.8
18.3
20.9 11.7
13.9
16.3
13.3
13.8
27.6
6.3
NM NM 25.5
8.5
6.1
8.0
5.4 11.3
6.7
6.9
9.4
5.6
8.8 13.9
8.8
0.7
12.0
5.7
NM 175.0
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ICICI Securities Ltd | Retail Equity Research Page 11