A

PROJECT REPORT

ON

“FUNDAMENTAL ANALYSIS OF TELECOMMUNICATION SECTOR”

SUBMITTED IN

PARTIAL FULFILMENT FOR

THE DEGREE OF

BACHELOR OF BUSINESS ADMINISTRATION

(BBA)

SUBMITTED BY

GAWALE MAHESHKUMAR PANDIT

ROLL NO.

FINANCE S-13

PROJECT GUIDE

MRS. BENAIFER D. DUMASIA

UDHNA CITIZEN COMMERCE COLLEGE &

S.P.B. COLLEGE OF BUSINESS ADMINISTRATION &

SMT. DIWALIBEN HARJIBHAI GONDALIA COLLEGE OF BCA & I.T.

SURAT

2018-19

1
 DECLARATION
I, the undersigned, Mr. Gawale Maheshkumar Pandit here by, declare that this
dissertation titled “Fundamental Analysis Of Telecommunication Sector” is
an original and bonafide work carried out under the guidance of Mrs. Benaifer
Dumasia, Assistant Professor, UCCC & SPBCBA & SDHCGBCA&IT College,
Udhna, Surat.

The empirical findings in this report are based on the primary data collected and
any information / data taken from any source is duly acknowledged.

This report is not submitted to any other institute, for any other either, for any
degree or diploma.

__________________________

(Signature of the researcher)

Mr. Gawale Maheshkumar Pandit Date:

BBA Roll No. = S-13(Finance) Place: Surat

2
 I

ACKNOWLEDGEMENT

The satisfaction and euphoria that accompany the successful

completion of any task would be incomplete without the mention of
the Leaders, whose constant guidance and encouragement crown all
the efforts with success.

I am highly obliged to the Veer Narmad Sout h Gujarat University for

arranging the programme of practical training in Bachelor of
Business Administration in such a manner.

It is my privilege to express my deep sense of gratitude to Mrs.

Benaifer D. Dumasia for her efforts, guidance, valuable comme nts and
suggestions for making this project report. She helped me to complete
my report on the practical study and gave contribution to improve
and expand my practical knowledge.

Finally, I express my intense gratitude to my parents whose blessings

has helped me translate my efforts into fruitful achievement.

II

3
 CERTIFICATE

This is to certify that Mr. Gawale Maheshkumar Pandit has prepared the
Project Report entitled “Fundamental Analysis of Telecommunication Sector”
under my guidance & supervision.

This project embodies the result of his work and is of the standard expected of a
candidate for the successful completion of Bachelor of Business Administration
Degree. The project report of this study may be sent for further evaluation.

Date:

Place: SURAT

________________ __________________

Faculty Guide Vice Principal Principal

Mrs. Benaifer Dumasia Dr. Daisy Sheby Thekkanal Dr. Mehul P. Desai

4
 INDEX

Sr No. Topic Page No.

I DECLARATION i

II ACKNOWLEDGEMENT ii

III CERTIFICATE-II (From College) iii

INDEX

IV List of Tables (Titles to be given) iv

List of Graphs (Titles to be given)

Introduction 07

1.1. Introduction of Project 08

1.2. Objective of the Project 08

1 1.3. Research Methodology 09

1.4. Scope of the Study 11

1.5. Importance of the Study 11

1.6. Limitation of the Study 11

Conceptual Framework 12

2 2.1. Industry Profile 13

2.2. Core Concepts 30

5
 Data Presentation & Analysis 37

3 3.1. Introduction 37

3.2. Presentation of Secondary Data 38

4 Findings & Conclusions 60

5 Suggestions & Recommendations 64

6 Bibliography 65

7 Annexure 67

6
 CHAPTER 1
INTRODUCTION

7
1.1. INTRODUCTION OF THE PROJECT

In this Project, study related to fundamental analysis of Telecommunication Company

that is Bharti Airtel Ltd and Vodafone Idea Ltd. Fundamental Analysis includes
economic analysis, Industry Analysis and Company Analysis. There are various tools
to measures the economic condition of nation such as GDP (gross domestic product),
FDI (Foreign Direct Investment), Inflation, Fiscal situation. Company analysis
includes ratio analysis that helps the investors while taking investments decision.

1.2 Objectives of the project

Primary Objective

 To do fundamental analysis of selected telecommunication companies.

Secondary Objectives

 To conduct a detailed study on the overall telecommunication industry in India.

 To know the present scenario of telecommunication industry.
 To do ratio analysis of the selected companies and to make necessary comments on it
and draw conclusion about financial position of selected telecommunication
companies.
 Compare a current fundamental analysis data with past fundamental analysis data of
the organisation and determine if there has been an improvement or deterioration or
no change over time.

8
1.3. Research Methodology
1.3.1 Research Problem
Research is on “Fundamental analysis of communication sector”. This project
includes two companies in communication sector like Bharti Airtel Limited, and
Vodafone and Idea Limited. Project duration 1st January to 28th February 2019. But
the Fundamental Analysis data duration from 1st January 2015 to 31st December 2018.

1.3.2. Data collection

There are two source of data Collection

1. Primary Data
2. Secondary Data

1. Primary Data:
Those data, which are collected at the first hand either by the researcher or by
someone else for the purpose of study, are know as primary data.
There are various methods like observation & questionnaire.

2. Secondary Data
Any data which has been gathered earlier for some other purpose, are secondary
data is related to what has already happened in the past period. There are various
methods like website, magazine, and other reference.

The source of secondary data collection are the literature as the looks and
industrial magazine that were referred. Internet was also one of the main sources
of secondary data collection.

“ This research is based on secondary data”

9
1.3.3. Research Design:

There are Three Types of Research Design

Research Design

Exploratory Research Descriptive Research Causal Research

1.) Exploratory research:

Exploratory research is a study of unfamiliar problem about which research has a little
knowledge i.e. it is a preliminary investigation where in the research himself has not
sufficient knowledge.

2.) Descriptive Research:

Descriptive research as also called “Conclusion research” because it is help the
decision maker in determining, evaluating and selecting a best course of action.
Then the research is interested in knowing the characteristics of certain group such as
age, education level, occupation,and income level.

3.) Causal Research:

As the name implies that a causal design investigation the cause and effect
relationship between two or more variable.

“Descriptive research design is selected for this research, because the project is based on
secondary data & new source idea

10
1.4. Scope of the Study

 Project includes two Telecommunication companies i.e. Bharti Airtel Ltd and
Vodafone Idea Ltd.
 Economic analysis, Industry analysis and company analysis is carried out for the
fundamental analysis of Telecommunication companies
 The scope of the study is limited to collecting financial data published in the annual
reports of the company every year.
 The analysis is done to suggest the possible solution. The study is carried out for 4
years ( 2015 to 2018)

1.5. Importance of the study

 Data is useful to the investor in taking investment decision.

 It helps to compare the theoretical knowledge with practical study.
 The project ratio is identifying the financial strength and weakness of
the telecommunication sector.
 Financial Statement so as to judge the profitability of the firm.

1.6. Limitation of the study

 The fundamental analysis has been done only two companies. This
may lead misinterpretation of industry, as there are many companies in
telecommunication industry.
 The data for the project is collected mainly through secondary sources.
It is not sure that the data is accurate and complete.
 Only four years data is used for research.
 The ratio is calculated from past financial statements and these are not
indicators of future.

11
CHAPTER 2

CONCEPTUAL

FRAMEWORK

12
2.1 Industry Profile

The Indian Telecom Sector has come a long way since liberalization started with a new
Telecom Policy (1999). Telecom sector has witnessed exponential growth especially in the
wireless segment in last few years. Telecom has involved as a basic infrastructure like
electricity, roads, water, etc. and has also emerged as one of the critical components of
economic growth required for overall socio economic development of the country. Total
numbers of telephone subscribers have increased from mere 76 million in 2044 to more than
1.206 billion in 30 September 2017.

The Telecom sector is one of the major drivers of the growth of the Indian economy. It is the
fastest growing telecom sector in the world with more than 16 million subscribers being
added every month.

The 4G data service launched in India. On 10 April 2012, Telecom Bharti Airtel has launched
India first high speed internet data service using 4G (fourth generation) telecommunication
technology. Company launched 4G service through dongles and modems using TD-LTE
technology in Kolkata, becoming the first company in India to offer 4G service.

The overall total TELE-density stands at 93.74% as on August 2017. In rural area, TELE-
density was 56.78% and in urban areas it was 173.21% at the end of august, 2017 and the
telecom sector is one of the significant contributors to the government revenue.

Although, the progress of the past few years has been spectacular, there are several areas of
deficit and concern for which a well thought out strategy has to evolved for the development
of this sector.

In order to further boost the growth in Telecom sector, Government has decided to draft
strategic plan of Department of Telecommunication for next four years.

13
 Rank Operator Subscribers( Market Ownership
Million) Share
1 BSNL 11.44 52.31% State-owned
2 Airtel 4.04 18.49% Private
3 MTNL 3.26 14.93% State-Owned
4 Tata 1.86 8.49% Private
5 Reliance 0.76 3.46% Private
6 Vodafone 0.28 1.29% Private
Idea Ltd

Major Players of Telecommunication Sector.

VISION

To provide secure, reliable affordable and high quality converged telecommunication

services anytime, anywhere for an accelerated inclusive socio-economic development.

MISSION

We fulfil the vision through facilitating the provisioning of world class telecommunications
infrastructure and services making the Nation connected "anytime-anywhere" enabling the
rapid socio-economic development of the country.

14
Objectives

 To facilitate inclusive growth of telecommunication by formulating coherent policy

in the following areas for
 Optimum utilization of scare spectrum resource.
 Ensure security in telecom networks and adopt effective measures to deal with cyber
threats.
 Grant of telecom licenses in an objective and transparent manner.
 Promotion of robust competitive market for telecom service
 Convergence of IT, Broadcasting & Telecom
 Rapid expansion of telecom infrastructure for voice, data & video with special
emphasis on rural and remote areas.
 To have a responsive consumer grievances redressel mechanism.
 Promoting R&D and indigenous manufacturing of telecom related equipment.
 To introduce testing and certification of all telecom products.
 Promotion of R&D and indigenous manufacturing of telecom equipment for
domestic and international market.

Function

 Policy, licensing and coordination matters relating to Telegraphs, Telephones wireless

Data, Facsimile, Telemetric service and other like forms of telecommunication.
 Promotion of standardization, research and development in telecommunication.
 Promotion of private investment in telecommunication.
 Financial assistance for the further research and study in telecommunication
technology and for building up adequately trained manpower for telecom programme
including assistance to institution and to universities for advance scientific study and
research.
 To promote deployement of secure indigenous equipment for strategic, security and
government networks.

15
Key challenges facing the telecom sector

India has witnessed growth in the telecom sector in the last decade. This has been possible
due to advances in technology, regulatory reforms, policy changes introduced by the
government and the dynamics of the private sector in fiercely competitive environment. This
lead to more telephone connections and lowest tariffs in the world. However, the rural tele-
density is still very low. There are less than 11 million broadband connections and about 40%
of the country does not have wireless coverage.

Indian telecom sector has achieved positive growth trajectories despite in economic
conditions. Telecoms sector in influenced and shaped by various external factors. Following
are the key factors which have an influence on the growth of telecom sector.

 Policies relating to foreign Direct investment(FDI)

 Policies relating to service tax
 Policies relating to import of telecom equipment
 Evolution and expansion of emerging telecom technology like NGN, LTE, Cloud
computing etc.
 Convergence of telecom services and networks.
 Effective security system for protection of telecom infrastructure.
 Need for evolving uniform policy for addressing right of way issues.
 Availability of affordable customer premises equipment.
 Availability of adequate power for telecom infrastructure.
 Availability of adequate spectrum.
 Need for promoting R&D product development and indigenous manufacturing.

16
SWOT ANALYSIS

Thus success of telecom sector is very inspiring for the whole of Indian economy. Like any
other sector, Telecom sector also has its strengths, weaknesses, Threats, and opportunities
which have been identified as below:

STRENGTHS

 Fastest growing telecom market

 Progressive reform process
 Forward looking approach of the government.
 Technology neutrality.
 Formulation of policies in time with the growth requirement.
 Fast adaptation of technology development i.e. mobile number portability (MNP) next
generation network (NGN), 4G and Broadband wireless access (BWA), IPv 6 etc.
 Establishment of regulatory/ Dispute resolution bodies.
 Framework for responsive customer grievance mechanism.
 Liberal FDI policy.
 Healthy competition resulting in the most affordable tariffs in the world.
 Policy of infrastructure sharing leading to optimum utilization of resource.

WEAKNESS

 Lack of indigenous telecom manufacturing and R&D

 Comparatively slower growth of telecom services in rural/remote areas.
 Low broadband penetration in the country.
 Low profitability of telecom PSUs.
 Non availability of adequate spectrum.
 Utilization against the available corpus of USOF.
 Non availability of adequate power supply for telecom services.
 High cost of data hosting in India.

17
OPPORTUNITIES

 For developing a new comprehensive telecom policy.

 For accelerating the growth of tele density in the country.
 For certain of telecom infrastructure in rural and remote areas by utilization of the
USO fund.
 For laying of optical fiber cable (OFC) to uncovered areas and effective utilization of
the existing resource to provide backhaul connectivity.
 For huge Broadband potential in the country.
 For R&D, product development and indigenous telecom manufacturing
 Development of local content/application.
 Development of affordable equipment at the customer end.
 Adoption of emerging technologies.

THREATS

 Non availability of adequate spectrum for telecom service.

 Underperformance of PSUs resulting in industrial unrest and erosion of value of
government equity.
 Dependence on foreign telecom equipment suppliers.
 Cyber threats on ICT networks, leading to security concerns.
 Obsolesce of existing network elements due to fast changing telecom technologies.

18
2.2 COMPANY PROFILE

HISTORY

Telecommunications in India began with the introduction of the telegraph. The Indian postal
and telecom sectors are one of the world’s oldest. In 1850, the first experimental electric
telegraph line was started between Calcutta and Diamond Harbour. In 1851, it was opened for
the use of the British East India Company. The Posts and Telegraphs department occupied a
small corner of the Public Works Department, at that time.

The construction of 4,000 miles (6,400 km) of telegraph lines was started in November 1853.
These connected Kolkata (then Calcutta) and Peshawar in the north; Agra, Mumbai (then
Bombay) through Sindwa Ghats, and Chennai (then Madras) in the south; Ootacamund and
Bangalore. William O'Shaughnessy, who pioneered the telegraph and telephone in India,
belonged to the Public Works Department, and worked towards the development of telecom
throughout this period. A separate department was opened in 1854 when telegraph facilities
were opened to the public.

In 1880, two telephone companies namely The Oriental Telephone Company Ltd. and The
Anglo-Indian Telephone Company Ltd. approached the Government of India to establish
telephone exchange in India. The permission was refused on the grounds that the
establishment of telephones was a Government monopoly and that the Government itself
would undertake the work. In 1881, the Government later reversed its earlier decision and a
licence was granted to the Oriental Telephone Company Limited of England for opening
telephone exchanges at Calcutta, Bombay, Madras and Ahmedabad and the first formal
telephone service was established in the country. On 28 January 1882, Major E. Baring,
Member of the Governor General of India's Council declared open the Telephone Exchanges
in Calcutta, Bombay and Madras. The exchange in Calcutta named the "Central Exchange"
had a total of 93 subscribers in its early stage. Later that year, Bombay also witnessed the
opening of a telephone exchange.

19
Bharti Airtel Limited

Bharti Airtel Limited (commonly shortened to Airtel and stylised airtel) is an Indian global
telecommunications services company based in New Delhi, India. It operates in 20 countries
across South Asia and Africa. Airtel provides GSM, 3G, 4G LTE mobile services, fixed line
broadband and voice services depending upon the country of operation. Airtel had also rolled
out its VoLTE technology across all Indian telecom circles except Jammu and Kashmir and
Andaman and is likely to launch in these circles soon.It is the second largest mobile network
operator in India and the third largest mobile network operator in the world with over 438.04
million subscribers. Airtel was named India's second most valuable brand in the first ever
Brandz ranking by Millward Brown and WPP plc.

Airtel is credited with pioneering the business strategy of outsourcing all of its business
operations except marketing, sales and finance and building the 'minutes factory' model of
low cost and high volumes. The strategy has since been adopted by several operators. Airtel's
equipment is provided and maintained by Ericsson, Huawei, and Nokia Networks whereas IT
support is provided by IBM. The transmission towers are maintained by subsidiaries and joint
venture companies of Bharti including Bharti Infratel and Indus Towers in India. Ericsson
agreed for the first time to be paid by the minute for installation and maintenance of their
equipment rather than being paid up front, which allowed Airtel to provide low call rates of
₹1 (1.4¢ US)/minute.

20
Type Public

Traded as  BSE: 532454

 NSE: BHARTIARTL

 BSE SENSEX Constituent

ISIN INE397D01024

Industry Telecommunications

Founded 7 July 1995; 23 years ago

Founder Sunil Mittal

Headquarters Bharti Crescent, 1, Nelson Mandela Road, New Delhi, India

Area served Worldwide

Key people  Sunil Mittal (Chairman)

 Gopal Vittal (MD & CEO)

Products  Fixed line telephone

 Mobile phone

 Broadband

 Satellite television

 Digital television

21
  Internet television

 IPTV

Revenue ₹955.9 billion (US$13 billion) (2017)

Operating ₹354 billion (US$4.9 billion) (2017)

income

Net income ₹42.4 billion (US$590 million) (2017)

Total assets ₹2,327 billion (US$32 billion) (2017)

Total equity ₹800 billion (US$11 billion) (2017)

Number of 25,400 (2016)

employees

Parent Bharti Enterprises (64%)

SingTel (36%)
Subsidiaries List

Website www.airtel.com

Vision

Our vision is to enrich the lives of our Customers. Our obsession is to win customers for life
through an exceptional experience.

Mission

Hunger to win customer Life.

Bharti airtel Limited Insiders on Board Members

22
Name Relationships Title Age
(Connections)

Sunil Mittal 69 Relationships Founder & Executive Chairman 61

Gopal Vittal 14 Relationships MD, CEO of India & South Asia and 52
Executive Director

Other Board Members On Board Members

Name Relationships Type of Primary Company Age

(Connections) Board
Members

Rakesh Mittal 58Relationships Vice Bharti Mobile Ltd. 63

Chairman

Suren 14Relationships Unit Airtel, Llc --

Goonewardene Chairman

Christian 42Relationships Unit Airtel Uganda Limited 65

DeFaria CA Chairman

Bernardus 33Relationships Member of Keen Venture Partners LLP 66

Verwaayen the Board of
Directors

Vegulaparanan 14Relationships Member of Bharti Airtel Limited --

Viswanathan the Board of
Directors

Dinesh Mittal 64Relationships Member of Max Financial Services 65

IAS(Retired) the Board of Limited
Directors

23
Craig Ehrlich 29Relationships Member of Bharti Airtel Limited 63
the Board of
Directors

Chua Sock 37Relationships Member of Singapore 60

Koong the Board of Telecommunications
Directors Limited

Yong Choo Tan 20Relationships Member of Bharti Airtel Limited 54

the Board of
Directors

Manish Kejriwal 38Relationships Member of Kedaara Capital Investment 50

the Board of Managers Limited
Directors

Shishir 18Relationships Member of Bharti Airtel Limited --

Priyadarshi the Board of
Directors

Kok Chong Chin 14Relationships Alternate Bharti Airtel Limited 55

Director

Tao Yih Lang 68Relationships Alternate Singapore 46

Director Telecommunications
Limited

24
Vodafone Idea Limited

Vodafone Idea Limited is India's largest telecom operator with its headquarter based in
Mumbai, Maharashtra. Vodafone Idea is a pan-India integrated GSM operator offering 2G,
3G and 4G mobile services under two brands named Vodafone and Idea. Vodafone Idea also
provides services including Mobile payments, IoT, advanced enterprise offerings and
entertainment, accessible via both digital channels as well as on-ground touch points, centers
across the country. The company's vision is 'to create world class digital experiences to
connect and inspire every Indian to build a better tomorrow'. As of November 2018,
Vodafone Idea has 32.2% market share in India with 422 million subscribers, making it
the largest mobile telecommunications network in India and second largest mobile
telecommunications network in the world. Vodafone Idea has a broadband network of
340,000 sites, distribution reach of 1.7 million retail outlets.

On 31 August 2018, Vodafone India merged with Idea Cellular, and was renamed as
Vodafone Idea Limited. However, the merged entity continues using both the Idea and
Vodafone brand. Currently, the Vodafone Group holds a 45.1% stake in the combined entity,
the Aditya Birla Group holds 26% and the remaining shares will be held by the
public.[7] Kumar Mangalam Birla heads the merged company as the Chairman, with Balesh
Sharma as the CEO.

25
Vodafone Idea Limited

Type Public

Traded as  BSE: 532822

 NSE: IDEA

Industry Telecommunications

Predecessor Vodafone India

Idea Cellular Limited

Founded 2018

Headquarters Mumbai (Corp.)[1][2]

Gandhinagar (Reg.)

26
 Key people Kumar Mangalam Birla
(Chairman)
Balesh Sharma
(CEO)[3][4]

Products Mobile telephony, wireless broadband

Revenue ₹7,663.6 crore(US$1.1 billion) (2018)[5]

Operating ₹7,202.2 crore(US$1.0 billion) (2018)[5]

income

Net income ₹4,950.5 crore(US$690 million) (2018)[5]

Members 422 million (November 2018)

Parent Vodafone Group

Aditya Birla Group

Website www.vodafoneidea.com

Vision

Create world class digital experiences to connect and inspire every Indian to build a better tomorrow

Mission

Be the most loved brand by continuously raising the bar in delivering simple, delightful experience and
meaningful innovations, through new age technologies

NameName (Cs) Relationships Type of Primary Age

Board Company
Members

Kumar Birla 115Relationships Chairman Thai Rayon 51

of the Public
Board

27
 Company
Limited

Arun 53Relationships Member Vodafone Idea 74

Thiagarajan of the Limited
Board of
Directors

Himanshu 23Relationships Member Grasim 57

Kapania of the Industries
Board of Limited
Directors

Debnarayan 42Relationships Member Aditya Birla 70

Bhattacharya of the Management
Board of Corporation
Directors Pvt. Ltd.

Neena Gupta 11Relationships Member Vodafone Idea 43

of the Limited
Board of
Directors

Ravinder 21Relationships Member Vodafone Idea 50

Takkar of the Limited
Board of
Directors

Thomas 25Relationships Member Vodafone Idea 46

Reisten of the Limited
Board of
Directors

Vivek 52Relationships Member Vodafone 49

Badrinath of the Group Plc

28
 Board of
Directors

Arun Adhikari 69Relationships Member Vodafone Idea 64

of the Limited
Board of
Directors

Ashwani 47Relationships Member Max Financial 62

Windlass of the Services
M.B.A., Board of Limited
B.Com., Bj. Directors
MBA

Doug Baillie 11Relationships Member Vodafone Idea --

of the Limited
Board of
Directors

Krishnan 11Relationships Member Vodafone Idea 69

Ramachandran of the Limited
Board of
Directors

29
2.3 CORE CONCEPT

Fundamental analysis is really a logical and systematic approach to estimating the future
dividends and share price. It is based on the basis premise that shares price are determined by
a number of fundamental factors relating to the economy, industry and company. Hence the
economic fundamental, industry fundamental and company fundamental have to be consider
while analysing the security for an investment propose

Fundamental analysis is, in other words, a detail analysis of fundamental factors affecting the
performance of the companies. This is called its intrinsic value or fundamental value. The
propose of fundamental analysis is to evaluate the present and future earnings capacity of
share based on the economy, industry and company fundamental and there by assess the
intrinsic value of the share. The investor can then compare the share with the prevailing
market price to arrive investment decision. If the market price of the share is lower than the
intrinsic value, the investor would decide to buy the share as it is under price. The price of
such share expected to move up in a future match with it is a intrinsic value.

Fundamental Analysis thus involves three steps:

1. Economic analysis

30
 2. Industry analysis
3. Company analysis

1. Economic analysis:

The performance of a company depends on the performance of the economy. If the

economy is booming, income rise, demand for goods increases, and hence the
industries and companies in general trend to be prosperous. On the other hand, if the
economy is in recession, the performance of companies will be generally bad. Investors
are concerned with those variables in the economy which affect the performance of the
company in which they intend to invest. A study of these economic variables would
give an idea about future corporate earnings and the payment of dividends and interest
to investors.

 Growth rate of gross domestic product

Gross domestic product (GDP) is a monetary measure of the market value of all the
final goods and services produced in a period of time, often annually GDP (nominal)
per capita does not, however, reflect differences in the cost of living and the inflation
rates of the countries; therefore using a basis of GDP per capita at purchasing power
parity (PPP) is arguably more useful when comparing differences in living standards
between nations.
year GDP
2018 7.2%
2017 7.3%
2016 6.6%
2015 7.1%

31
 2018
7.5

6.5

6
2018 2017 2016 2015

2018

The statistic shows the growth of the real gross domestic product (GDP) in India from
2015 to 2018. In 2018, India's real gross domestic product (GDP) growth was at about
7.2 percent compared to the previous year. GDP refers to the total market value of all
goods and services that are produced within a country per year. It is an important
indicator of the economic strength of a country. Real GDP is adjusted for price
changes and is therefore regarded as a key indicator for economic growth

 Inflation
Inflation is generally defined as the increase of prices of goods and services over a
certain period of time, as opposed to deflation, which describes a decrease of these
prices. Inflation is a significant economic indicator for a country. The inflation rate is
the rate at which the general rise in the level of prices, goods and services in an economy
occurs and how it affects the cost of living of those living in a particular country. It
influences the interest rates paid on savings and mortgage rates but also has a bearing
on levels of state pensions and benefits received.

Year Inflation Rate

2015 4.9%
2016 4.5%
2017 3.6%
2018 4.74%

32
 Inflation Rate
6
5
4
3
2
1
0
2018 2017 2016 2015

Inflation Rate

 The statistic shows the inflation rate in India from 2015 to 2018. The inflation rate is calculated
using the price increase of a defined product basket. This product basket contains products and
services, on which the average consumer spends money throughout the year. They include
expenses for groceries, clothes, rent, power, telecommunications, recreational activities and
raw materials (e.g. gas, oil), as well as federal fees and taxes.

 Interest rates

An interest rate is the amount of interest due per period, as a proportion of the amount
lent, deposited or borrowed (called the principle sum). The total interest on an amount
lent or borrowed depends on the principal sum, the interest rate, the compounding
frequency, and the length of time over which it is lent, deposited or borrowed.

It is defined as the proportion of an amount loaned which a lender charges as interest

to the borrower, normally expressed as an annual percentage. Annual interest rate is
the rate over a period of one year. Other interest rates apply over different periods, such
as a month or a day, but they are usually annual.

 INDEX OF INDUSTRIAL PRODUCTION (IIP):-

The Index of Industrial Production (IIP) is an index for India which details out the
growth of various sectors in an economy such as mineral mining, electricity and
manufacturing. The all India IIP is a composite indicator that measures the short-term
changes in the volume of production of a basket of industrial products during a given

33
 period with respect to that in a chosen base period. It is compiled and published monthly
by the central statistical organization (CSO), Ministry of Statistics and Programmed
Implementation six weeks after the reference month ends.

The level of the Index of Industrial Production (IIP) is an abstract number, the
magnitude of which represents the status of production in the industrial sector for a
given period of time as compared to a reference period of time.

INDUSTRY ANALYSIS

An industry is a group of firms that have similar technological structure of production

and produce similar products and industry analysis is a type of business researcher
focuses on the status of an industry or an industrial sector. Irrespective of specific
economic situation, some industries might be expected to perform better, and share
price in the industries may not decline as much as in other industries. This
identification of economic and industry specific factors influencing share price will
help investors to identify the shares that fit individual expectations.

Industry Life Cycle:

The industry life cycle theory is generally attributed to Julius Grodensky. The Life
cycle of the industry is separated into four well defined stages:

 Pioneering Stage:
The prospective demand for the product is promising in this stage and the technology
of the product is low. The demand for the product attracts many producers to produce
the particular product. The producers try to develop brand name, differentiate the
product and create a product Image. In this stage situation, it is difficult to select
companies for investment because the survival rate is unknown.

 Rapid Growth Stage:

34
 This stage starts with the appearance of surviving firms from the pioneering stage.
The companies that have withstood the competition grow strongly in market share and
financial performance. The technology of the production would have improved
resulting in low cost of production and good quality products.

 Maturity And Stabilization Stage:

The growth rate tends to moderate and the rate of growth would be more or less equal
to the industrial growth rate or the gross domestic product growth rate. Symptoms of
obsolescence may appear in the technology. To keep going technology innovation in
the production process and products should be introduced.

 Decline Stage:
Demand for the particular product and the earnings of the companies in the industry
decline. It is better to avoid investing in the shares of the low growth industry even in
the boom period. Investment in the shares of these types of companies leads to
erosion capital.
 COMPANY ANALYSIS

 Company analysis is the final stage of fundamental analysis. The economy analysis
provides the investor a broad outline of the prospects of growth in the economy. The
industry analysis helps the investor to select the industry in which investment would be
rewarding. Now he has to decide the company in which he should invest his money.
Company analysis provides the answer to this question. Company analysis deals with
the estimation of return and risk of individual shares. This calls for information. Many
pieces of information influence investment decisions.

 Information regarding companies can be broadly classified into two broad groups:
internal and external. Internal information consists of data and events made public by
companies concerning their operations. The internal information sources include annual
reports to shareholders, public and private statements of officers of the company, the
company financial statements, etc. External sources of information are those generated

35
 independently outside the company. These are prepared by investment services and the
financial press.

 In company analysis, the analyst tries to forecast the future earnings of the company
because there is strong evidence that earnings have a direct and powerful effect upon
share prices. The level, trend and stability of earnings of a company, however, depend
upon a number of factors concerning the operations of the company.

The Company analysis of two major Telecommunication on the basis market

capitalization:
Company Company Name
1 Bharti Airtel Ltd.
2 Vodafone Idea Ltd.
Company analysis is carried out on the basis of various variables. Following are the
comparison of major telecommunication Based on various factors.

RATIO ANALYSIS:-

Ratio is a relationship between two figures expressed mathematically. Financial ratios

provide numerical relationship between two relevant financial data. Financial ratios are
calculated from the balance sheet and profit and loss account. The relationship can be either
expressed as a percent or as a quotient. Ratios summarize the data for easy understanding,
comparison and interpretations.

Advantages Of ratio:

 The use of ratio are made initially to ascertain the liquidity of the business.
 The turnover ratio are useful to measures the efficiency of managers.
 Ratio will give a fairly good idea about various aspects of financial position.
 Ratio guide the management in making important decision.
 It is simplifies the financial statements.
 it helps in trend analysis which involves comparing a single company over a period.

36
  It highlight important information in simple from quickly. A user can judge a
company by just looking at few numbers instead of reading the whole financial
statement.

Disadvantages:

 Different companies operate in different industries each having different

environmental condition such as regulation, market structure, etc. such factors are so
significant that a comparison of two companies from different industries might be
misleading.
 Financial accounting information is affected by estimates and assumptions.
Accounting standards allow different accounting policies, which impairs
comparability and hence ratio analysis is less useful in such situation.
 Ratio analysis explains relationship between past information while users are more
concerned about current and future information.

37
 CHAPTER 3
DATA ANALYSIS

OPERATING NET PROFIT

Meaning

This ratio measures the relationship between total profits of good sold, operating profit and
net sales. It shows the overall operating efficiency of the business stock. The main objective
of calculating this ratio is to determine the operational efficiency with which production &
purchase & selling operational carried on.

Operating Profit Ratio= Cost of Goods Sold + Operating Income / Net Sales

38
company 2018 2017 2016 2015 Average
Bharti Airtel 33.18 38.04 37.04 35.01 35.8175
Ltd.
Idea and 20.29 28.61 33.01 30.92 28.2075
Vodafone Ltd.

39
 Operating Net Profit
40 38.04 37.04
35.01
35 33.18 33.01
30.92
30 28.61

25
20.29
20

15

10

0
Bharati Airatel Ltd. Idea And Vodafone Ltd

2018 2017 2016 2015

INTERPRETATION

 The Operating profit of Bharti Airtel Ltd is 35.8175 is more than idea and
Vodafone Ltd. It is good for the company.
 The operating profit Idea and Vodafone Ltd is 28.2075. It is less than
Bharti Airtel Ltd.
 Vodafone and Idea Ltd average operating profit ratio is lower than other
companies is not favourable from investors point of view because Bharti
Airtel has operating profit.

GROSS PROFIT

40
Gross profit is the difference between net sales and cost of goods sold. This ratio shows the
margin left after meeting the manufacturing costs. It measures the efficiency of production as
well as pricing. A high gross profit ratio means a high margin for covering other expenses
other then cost of goods sold. Therefore, higher the ratio, the better it is.

Gross Profit Ratio= Gross Profit / Net Sales *100

company 2018 2017 2016 2015 Average

Bharti Airtel 8.86 18.44 21.12 21.39 17.4525
Ltd.
Idea and -9.59 6.78 15.84 15.40 7.1075
Vodafone Ltd.

41
 25
Gross Profit
20

15

10

0
Bharti Airtel Ltd Idea and Vodafone Ltd
-5

-10

-15

2018 2017 2015 2014

Interpretation

 The Average Gross Profit Of Bharti Airtel Ltd is 17.425.

 The Average Gross profit of Idea and Vodafone Ltd 7.1025 is less
compare to Vodafone idea Ltd.
 From investor’s point of view gross profit ratio of Bharti Airtel is seems
Satisfactory.

42
NET PROFITS:

It measures the percentages of each sales rupee remaining after all costs and expenses
including interest and taxes have deducted. The ratio of net profit essential expresses the cost
price effectiveness of the operation. This measures the relationship between net profit and
sales of a firm.

Net profit ratio= Net Profit / Sales *100

company 2018 2017 2016 2015 Average

Bharti Airtel Ltd. 0.15 -15.93 12.90 23.78 5.225
Idea and -17.18 -2.35 7.39 8.98 -0.79
Vodafone Ltd.

43
 Net Profit
30

25

20

15

10

0
Bharti Airtel Ltd Idea and Vodafone Ltd
-5

-10

-15

-20

2018 2017 2016 2015

Interpretation

 The Average Net Profit of Idea and Vodafone Ltd -0.79 is very less.
 The Average Net Profits Bharti Airtel Ltd is 5.225is more than Idea and
Vodafone Ltd.
 Average Net profit ratio of Vodafone Idea Ltd is less than Bharti Airtel
Ltd with Average of -0.79 and making very low on its net sales.

44
Return on capital employed

It is profitability ratio which measures in terms of the relationship between net profits and
total capital employed. Total capital employed refers to long term funds supplied by the
lenders and the borrowers of the firm.

Return on capital employed: Operating Profit / Capital Employed

company 2018 2017 2016 2015 Average

Bharti Airtel Ltd. 3.01 7.38 8.38 17.32 9.0225
Idea and Vodafone -2.87 3.43 9.38 13.85 5.9475
Ltd.

45
 Return on Capital Employed
20

15

10

0
Bharti Airtel Ltd Idea and Vodafone Ltd

-5

2018 2017 2016 2015

Interpretation

 The Average of Return on capital employed of Bharti Airtel Ltd is 9.0225

 The Average of Return on Capital Employed of Vodafone Idea Ltd is
5.9475 which is less.
 The Return on capital Employed ratio of Bharti Airtel Ltd is high. The
company can generate profits from its capital employed by comparing net
operating profit to capital employed.

46
Current ratio

The current ratio is the ratio of current assets to total current liabilities. The current assets of
the firm includes cash and bank balances. Marketable securities, inventories, debtors, bills
receivables and prepaid expenses. The current liabilities consist of trade creditors, bills
payable, Bank credit and provision for taxation, dividends payable outstanding expenses
conventionally, a current ratio of 2 is considered satisfactory.

Current Ratio= Current Assets / Current Liabilities

company 2018 2017 2016 2015 Average

Bharti Airtel Ltd. 0.60 0.61 0.61 0.73 0.6375
Idea and 0.50 0.29 0.26 0.39 0.36
Vodafone Ltd.

47
 Current Ratio
0.8

0.7

0.6

0.5

0.4

0.3

0.2

0.1

0
Bharti Airtel Ltd. Idea and Vodafone Ltd.

2018 2017 2016 2015

Interpretation

 The Average Current Ratio of Vodafone Idea Ltd is less than Bharti
Airtel Ltd.
 The Average Current Ratio of Bharti Airtel Ltd 0.6375.
 Average Current Ratio Vodafone Idea Ltd is 0.36 which means Vodafone
Idea Ltd has less current assets than Bharti Airtel so company may have
problem in paying its obligation.

48
Quick Ratio:

The quick ratio is the ratio between quick current assets and current liabilities. The quick
assets includes all current assets excluding prepaid expenses and inventory. The current
liability includes all liability expect bank overdraft. Generally, a quick ratio 1 considered
satisfactory.

Quick Ratio= Quick Assets / Liquid Liabilities

company 2018 2017 2016 2015 Average

Bharti Airtel Ltd. 0.69 0.71 0.55 0.75 0.675
Idea and Vodafone 0.44 0.28 0.31 0.39 1.42
Ltd.

49
 Quick Ratio
0.8

0.7

0.6

0.5

0.4

0.3

0.2

0.1

0
Bharti Airtel Ltd. Idea and Vodafone Ltd.

2018 2017 2016 2015

Interpretation

 The Average Quick Ratio of Bharti Airtel ltd is 0.675 is less than
Vodafone Idea Ltd.
 The Average Quick Ratio of Vodafone Idea Ltd is 1.42.
 Average Quick ratio of Bharti Airtel Ltd is lower than Vodafone Idea Ltd
is not in a position to meet its liabilities.

50
Debt Equity Ratio:

The debt equity ratio is the ratio of total outside liabilities to owners’ total funds. It measures
of the financial solvency of a firm. the debt considered here is a exclusive of a current
liabilities. The shareholder’s fund includes equity and preferences share capital, reserve and
surplus.

Debt-Equity= External Equities / Internal Equities

company 2018 2017 2016 2015 Average

Bharti Airtel Ltd. 0.61 0.56 0.38 0.26 0.4525
Idea and Vodafone 2.22 2.18 1.52 0.74 1.665
Ltd.

51
 Debt Equity Ratio
2.5

1.5

0.5

0
Bharti Airtel Ltd. Idea and Vodafone Ltd.

2018 2017 2016 2015

Interpretation

 The Average Debt Equity ratio Bharti Airtel Ltd is 0.4525.

 The Average Debt Equity ratio of Vodafone Idea Ltd 1.665 is higher than
Bharti Airtel Ltd.
 The debt equity ratio for all the companies is less than 1 ratio which
indicates that the portion of assets provided of by creditors is lower than
the portion of assets provided by stockholder.

52
Debtors Turnover Ratio:

Debtors Turnover Ratio is a test of the liquidity of the debtors of a firm. It shows how quickly
receivables or debtors are converted into cash. It shows the relationship between credit sales
add debtors of a firm.

Debtors Turnover Ratio= Credit Sales / Average Debtors

company 2018 2017 2016 2015 Average

Bharti Airtel Ltd. 14.25 19.51 18.60 20.27 18.1575
Idea and Vodafone 25.94 29.47 34.62 36.76 31.6975
Ltd.

53
 Debtors Turnover Ratio
40 36.76
34.62
35
29.47
30
25.94
25
19.51 20.27
20 18.6

14.25
15

10

0
Bharati Airtel Ltd. Idea and Vodafone Ltd.

2018 2017 2016 2015

Interpretation

 The Average of Debtors turnover ratio Vodafone Idea Ltd is 31.6975.

 The Average of Debtors turnover ratio Bharti Airtel Ltd is 18.1575 is less
than Vodafone Idea Ltd.
 The Debtors turnover ratio of Vodafone Idea ltd is high compare to other
companies. So that company should not reassess its credit policies. The
ratio of Bharti Airtel ltd is lower compare to other companies. So that
company should reassess its credit polocies.

54
Fixed Assets Turnover Ratio:

The fixed asset turnover ratio measures a company’s ability to generate net sales from fixed
asset investment specifically property, plant and equipment. A Higher fixed asset turnover
ratio shows that the company has been more effective in using the investment in fixed asset to
generate revenues.

Fixed Assets Turnover Ratio= Cost Of Sales / Net Fixed Assets

company 2018 2017 2016 2015 Average

Bharti Airtel Ltd. 0.51 0.69 0.79 0.86 0.7125
Idea and Vodafone 0.33 1.12 1.39 0.85 0.9225
Ltd.

55
 Fixed Assets Turnover Ratio
1.6

1.4

1.2

0.8

0.6

0.4

0.2

0
Bharti Airtel Ltd. Idea and Vodafone Ltd.

2018 2017 2016 2015

Interpretation

 The Average Fixed Assets Turnover Ratio of Bharti Airtel Ltd is 0.7125.
 The Average Fixed Assets turnover ratio of Vodafone Idea Ltd is 0.9225
is more than Bharti Airtel Ltd.
 Vodafone Idea ltd has higher ratio so it making utilization of fixed assets.
Whereas fixed asset turnover ratio of Bharti Airtel ltd indicates inefficient
or under- utilization of fixed assets.

56
Total Asset Turnover Ratio:

This ratio establish a relationship between total assets and sales. This ratio enables to know
the efficient utilization of total asset of a business. The ideal ratio is 2 times High ratio
indicates efficient utilization and the ratio less than 2 indicates underutilization.

Total asset Turnover Ratio= Cost of Sales / Net Total Assets

company 2018 2017 2016 2015 Average

Bharti Airtel Ltd. 0.59 0.74 0.65 0.78 0.69
Idea and Vodafone 0.34 2.53 1.96 1.31 1.535
Ltd.

57
 Total Asset Turnover Ratio
3

2.5

1.5

0.5

0
Bharti Airtel Ltd. Idea and Vodafone Ltd.

2018 2017 2016 2015

Interpretation

 The Average Total Assets Turnover Ratio of Bharti Airtel Ltd is 0.69
 The Average Total Assets Turnover Ratio of Vodafone Idea Ltd is 1.535
is More than Bharti Airtel Ltd.
 The total assets turnover ratio of Vodafone Idea Ltd ability to generate
sales from its assets by comparing net sales with total average assets.

58
Interest Coverage Ratio:

The interest coverage ratio is calculated by dividing a company's earnings before interest and
taxes (EBIT) by the company's interest expenses for the same period. The lower the interest
coverage ratio, the higher the company's debt burden and the greater the possibility of
bankruptcy or default.

Interest Coverage Ratio= EBIT/ Interest Expenses

Company 2018 2017 2016 2015 Average

Bharti 0.98 4.01 6.54 12.11 5.91
Airtel Ltd
Vodafone -0.48 0.65 3.29 5.66 2.28
Idea Ltd

59
 Interest Coverage Ratio
14

12

10

0
Bharti Airtel Ltd Idea Vodafone Ltd
-2

2018 2017 2016 2015

Interpretation

 The Average Interest Coverage Ratio of Bharti Airtel Ltd is 5.91

 The Average Interest Coverage Ratio of Vodafone Idea Ltd is 2.28 is less
than Bharti Airtel Ltd.
 The Interest coverage ratio of the Bharti Airtel Ltd high a company can
easily pay their interest expenses on outstanding debt.

60
CHAPTER 4
FINDINGS

61
Average Ratio Bharti Airtel Ltd Vodafone Idea
Ltd
Operating Profit 2 1
Ratio
Gross Profit Ratio 2 1

Net Profit Ratio 2 1

Return on Capital 2 1
Employed
Current Ratio 2 1

Quick Ratio 1 2

Debt-Equity Ratio 1 2

Debtors-Turnover 1 2
Ratio
Fixed Assets 1 2
Turnover Ratio
Total Assets 1 2
Turnover Ratio
Interest Coverage 2 1
Ratio
Total 17 16

Rank 2 1

1. Low for the company

2. High for the company

62
 The current ratio of Bharti Airtel Ltd is so high so that ability to meet current
obligation more. The ratio of Vodafone idea ltd is low so that meet current obligation
is not more.
 The quick ratio of Vodafone Idea Ltd is so high so that incident of inventory is lower.
So that it indicates sound financial position. The Bharti Airtel Ltd has low ratio so that
the incident of inventory is higher and financial position is unsound.
 The net profits ratio Bharti Airtel has high ratio compare to other companies that
means higher the ratio better efficiency concerned. The Vodafone Idea gets lower
ratio, so that lower efficiency concern.
 The Interest coverage ratio of the Bharti Airtel high a company can easily pay their
interest expenses on outstanding debt.
 The total assets turnover ratio of Vodafone Idea Ltd ability to generate sales from its
assets by comparing net sales with total average assets.
 The Debtors Turnover Ratio of Vodafone idea ltd is high compare to other companies.
So that company should not reassess its credit policies. The ratio of Bharti Airtel Ltd
is lower compare to other companies so that company should reassess its credit
policies.
 The Operating Profit ratio of Bharti Airtel is so high which means company has less
financial risk. The ratio Vodafone idea ltd is low compare to other companies. It
describe company has more risk
 Vodafone idea ltd has higher fixed turnover ratio so it making better utilization of
fixed asset. Whereas, fixed asset turnover ratio of Bharti Airtel Ltd indicates
inefficient or under-utilization of fixed assets.
 Vodafone idea ltd making better utilization of total assets. Whereas, total asset
turnover ratio of Bharti Airtel Ltd indicates inefficient or under- utilization of total
assets.
 Debt Equity Ratio Bharti Airtel is less than 1 which indicates that the portion of assets
provided by creditors is lower than the portion of assets provided by stockholder
 Gross profit ratio Bharti Airtel Ltd carry out more profit than Vodafone Idea Ltd.

63
 Conclusion:

Conclusion is the final and most important stage of the entire project. This part will indicate
to the investors, creditors and shareholders. Each of the company’s overall operating
efficiency and performance that will help them the most efficient investment decision.

In recent time Telecommunication industry is one of the faster growing industry in India and
as well as in the world. The purpose of the study is to evaluate the actual condition and trend
Telecommunication of industry in India. The steady growth of uses internet India has set a
higher growth path.

The final investment decision is given on the basis of ratio analysis. Thus it will highly affect
the investment decision. From the analysis of Telecommunication sector, researcher found
that the financial position and capital structure of the Bharti Airtel is stronger and
comparatively higher than Vodafone idea Ltd. And lastly researcher concludes that ratio is
the most important yardstick that provides measures of comparison between different
companies. It would be easier for the investors to make the profitable decision so that they
can earn much profit as possible out of their investment.

64
 CHAPTER 5
SUGGESTIONS

 Telecommunication companies have lots of room to grow, so investment in these of

industrial helps the investors to earn returns in the long run.
 Buy shares of reputed companies backed by top class management.
 Before investing, we would undertake a deep study on the net sales, net profits, in
relations to equity capital employed and should attempt to forecast the same for
coming years.
 Do not invest in inactive share. Generally it is difficult to them.
 The investors should become cautious while investing for very long time.
 The investors should analyse price movement.
 Economic performance is greatly affects the performance of the industries of the
country, so investors should study the economic performance of the country while
investing.
 If they follow the market trends then they can deliver high returns and reduce the risk.

65
CHAPTER 6
Bibliography

66
www.moneycontrol.com

www.vodafoneidea.com

www.airtelbhrati.com

www.wikipedia.org

67
CHAPTER 7
ANNEXURE

68
Balance Sheet of Bharti Airtel ------------------- in Rs. Cr. -------------------

Mar '18 Mar '17 Mar '16 Mar '15

12 mths 12 mths 12 mths 12 mths

Sources Of Funds

Total Share Capital 1,998.70 1,998.70 1,998.70 1,998.70

Equity Share Capital 1,998.70 1,998.70 1,998.70 1,998.70

Reserves 100,862.20 99,208.60 109,730.40 76,272.10

Networth 102,860.90 101,207.30 111,729.10 78,270.80

Secured Loans -5,244.90 -3,483.00 0.00 -1,315.20

Unsecured Loans 67,781.00 60,372.90 42,156.90 21,567.80

Total Debt 62,536.10 56,889.90 42,156.90 20,252.60

Total Liabilities 165,397.00 158,097.20 153,886.00 98,523.40

Mar '18 Mar '17 Mar '16 Mar '15

12 mths 12 mths 12 mths 12 mths

Application Of Funds

Gross Block 180,754.60 163,428.00 137,060.80 93,021.60

Less: Revaluation Reserves 0.00 0.00 0.00 2.10

Less: Accum. Depreciation 58,145.20 51,905.20 45,135.30 39,577.20

Net Block 122,609.40 111,522.80 91,925.50 53,442.30

Capital Work in Progress 5,542.70 9,600.20 3,830.30 9,066.90

Investments 48,128.20 45,959.00 69,897.30 43,116.90

Inventories 6.30 3.90 5.30 9.40

Sundry Debtors 4,319.60 3,211.80 3,172.40 3,311.00

Cash and Bank Balance 545.10 173.40 46.60 388.70

Total Current Assets 4,871.00 3,389.10 3,224.30 3,709.10

Loans and Advances 23,786.00 21,166.50 16,150.60 17,086.40

Total CA, Loans & Advances 28,657.00 24,555.60 19,374.90 20,795.50

Current Liabilities 39,231.10 33,178.30 30,800.80 26,466.40

Provisions 309.20 362.10 341.20 1,431.80

Total CL & Provisions 39,540.30 33,540.40 31,142.00 27,898.20

69
Net Current Assets -10,883.30 -8,984.80 -11,767.10 -7,102.70

Total Assets 165,397.00 158,097.20 153,886.00 98,523.40

Profit & Loss account of Bharti Airtel ------------------- in Rs. Cr. -------------------

Mar '18 Mar '17 Mar '16 Mar '15

12 mths 12 mths 12 mths 12 mths

Income

Sales Turnover 53,663.00 62,276.30 60,300.30 55,496.40

Net Sales 53,663.00 62,276.30 60,300.30 55,496.40

Other Income -362.80 -17,089.00 -510.40 5,193.00

Total Income 53,300.20 45,187.30 59,789.90 60,689.40

Expenditure

Raw Materials 0.00 0.00 0.00 71.40

Power & Fuel Cost 4,564.70 4,552.60 5,758.90 4,115.10

Employee Cost 1,720.90 1,738.50 1,864.80 1,691.50

Other Manufacturing Expenses 22,843.90 24,975.50 23,017.10 14,602.50

Selling and Admin Expenses 578.70 720.00 748.50 0.00

Miscellaneous Expenses 6,149.90 6,596.80 6,599.80 15,584.80

Total Expenses 35,858.10 38,583.40 37,989.10 36,065.30

Mar '18 Mar '17 Mar '16 Mar '15

12 mths 12 mths 12 mths 12 mths

Operating Profit 17,804.90 23,692.90 22,311.20 19,431.10

PBDIT 17,442.10 6,603.90 21,800.80 24,624.10

Interest 5,069.00 2,912.50 1,974.50 1,409.10

PBDT 12,373.10 3,691.40 19,826.30 23,215.00

Depreciation 13,048.60 12,203.40 9,575.30 7,559.70

Profit Before Tax -675.50 -8,512.00 10,251.00 15,655.30

70
PBT (Post Extra-ord Items) -675.50 -8,512.00 10,251.00 15,655.30

Tax -760.40 1,416.10 2,474.10 2,454.80

Reported Net Profit 79.20 -9,925.60 7,780.30 13,200.50

Total Value Addition 35,858.10 38,583.40 37,989.10 35,993.90

Equity Dividend 999.30 399.70 887.20 1,539.00

Corporate Dividend Tax 535.70 145.90 0.00 58.60

Per share data (annualised)

Shares in issue (lakhs) 39,974.00 39,974.00 39,974.00 39,974.00

Earning Per Share (Rs) 0.20 -24.83 19.46 33.02

Equity Dividend (%) 106.80 20.00 27.20 77.00

Book Value (Rs) 257.32 253.18 279

71
Balance Sheet of Vodafone Idea Limited ------------------- in Rs. Cr. -------------------

Mar '18 Mar '17 Mar '16 Mar '15

12 mths 12 mths 12 mths 12 mths

Sources Of Funds

Total Share Capital 4,359.30 3,605.33 3,600.51 3,597.84

Equity Share Capital 4,359.30 3,605.33 3,600.51 3,597.84

Reserves 21,310.20 20,118.43 21,164.69 18,292.30

Networth 25,669.50 23,723.76 24,765.20 21,890.14

Secured Loans 56,962.50 7,858.93 37,549.62 6,206.67

Unsecured Loans 0.00 43,812.55 0.00 9,951.21

Total Debt 56,962.50 51,671.48 37,549.62 16,157.88

Total Liabilities 82,632.00 75,395.24 62,314.82 38,048.02

Mar '18 Mar '17 Mar '16 Mar '15

12 mths 12 mths 12 mths 12 mths

Application Of Funds

Gross Block 83,293.10 85,501.14 69,717.83 51,212.18

Less: Accum. Depreciation 0.00 9,376.15 4,746.53 19,098.27

Net Block 83,293.10 76,124.99 64,971.30 32,113.91

Capital Work in Progress 0.00 0.00 6,038.83 5,079.45

Investments 6,386.20 6,251.31 2,499.70 12,814.11

Inventories 33.90 54.21 85.15 58.30

Sundry Debtors 887.40 1,258.10 1,136.06 932.19

Cash and Bank Balance 22.30 31.27 757.66 1,541.94

Total Current Assets 943.60 1,343.58 1,978.87 2,532.43

Loans and Advances 6,100.20 4,513.36 3,166.49 5,135.96

Total CA, Loans & Advances 7,043.80 5,856.94 5,145.36 7,668.39

Current Liabilities 13,761.30 20,019.91 15,913.40 19,046.89

Provisions 329.80 347.27 426.96 580.93

Total CL & Provisions 14,091.10 20,367.18 16,340.36 19,627.82

Net Current Assets -7,047.30 -14,510.24 -11,195.00 -11,959.43

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Total Assets 82,632.00 67,866.06 62,314.83 38,048.04

Profit & Loss account of Vodafone Idea

------------------- in Rs. Cr. -------------------
Limited

Mar '18 Mar '17 Mar '16 Mar '15

12 mths 12 mths 12 mths 12 mths

Income

Sales Turnover 27,828.60 35,278.65 35,803.69 31,279.47

Net Sales 27,828.60 35,278.65 35,803.69 31,279.47

Other Income 298.20 197.03 163.90 452.34

Total Income 28,126.80 35,475.68 35,967.59 31,731.81

Expenditure

Power & Fuel Cost 0.00 2,952.22 2,460.36 2,394.40

Employee Cost 1,396.80 1,625.64 1,473.52 1,358.73

Other Manufacturing Expenses 0.00 19,183.73 18,623.30 16,664.56

Selling and Admin Expenses 0.00 455.40 483.32 0.00

Miscellaneous Expenses 20,786.10 966.82 868.60 1,188.37

Total Expenses 22,182.90 25,183.81 23,909.10 21,606.06

Mar '18 Mar '17 Mar '16 Mar '15

12 mths 12 mths 12 mths 12 mths

Operating Profit 5,645.70 10,094.84 11,894.59 9,673.41

PBDIT 5,943.90 10,291.87 12,058.49 10,125.75

Interest 4,924.50 4,010.85 1,777.85 931.66

PBDT 1,019.40 6,281.02 10,280.64 9,194.09

Depreciation 8,316.10 7,700.02 6,223.23 4,855.01

Profit Before Tax -7,296.70 -1,419.00 4,057.41 4,339.08

PBT (Post Extra-ord Items) -7,296.70 -1,419.00 4,057.41 4,339.08

Tax -2,515.90 -587.93 1,424.56 1,529.25

Reported Net Profit -4,780.60 -831.08 2,646.29 2,809.84

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Total Value Addition 22,182.90 25,183.80 23,909.10 21,606.06

Equity Dividend 0.00 0.00 215.96 226.94

Corporate Dividend Tax 0.00 0.00 43.97 45.83

Per share data (annualised)

Shares in issue (lakhs) 43,593.00 36,053.28 36,005.09 35,978.44

Earning Per Share (Rs) -10.97 -2.31 7.35 7.81

Equity Dividend (%) 0.00 0.00 6.00 6.00

Book Value (Rs) 58.88 65.80 68.78 60.84

74