1

COMPANY ANLYSIS OF BHARTI AIRTEL LTD.

A Summer Internship Project Report submitted in partial fulfilment

of the requirements for the award of the degree of

Post Graduate Diploma in Management – Banking Insurance

and Financial Service

Submitted by

Inturi Chinmayi

(Roll. No: 2103016)

Under the Guidance of

Prof. Venkateswar Rao

IPE, Hyderabad

Institute of Public Enterprise Hyderabad, Telangana

State, India-500101

(September, 2022)
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3
 Institute of Public Enterprise
Hyderabad, Telangana State, India-500101

Declaration
I hereby declare that the work presented in the project entitled “A Company Analysis of
Bharti Airtel Ltd.”, is a Summer Internship Project Report submitted in partial fulfilment of the
requirements for the award of the degree of Post Graduate Diploma in Management –
Banking, Insurance and Financial Service is an authentic record of my own work carried out
during a period from 15th July 2022. To 15thSeptember, 2022 under the super- vision of Prof.
Venkateswar Rao, mentor and faculty Institute of Public Enterprise, Hyderabad.

The matter presented in this project work has not been submitted by any one or by me for
the award of any other degree of this or any other Institute/University.

[Signature of the student]

Interim Chinmayi

Roll No. 2103016

Mentor Certificate
This is to certify that the above statement made by the candidate is true to the best of my knowledge
and belief.

Place: Hyderabad Prof. Vekateswar Rao

Date: IPE, Hyderabad

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 Institute of Public Enterprise
Hyderabad, Telangana State, India-500101

Declaration
I hereby declare that the work presented in the project entitled “A Company Analysis of
Bharti Airtel Ltd.”, is a Summer Internship Project Report submitted in partial fulfilment of the
requirements for the award of the degree of Post Graduate Diploma in Management –
Banking, Insurance and Financial Service is an authentic record of my own work carried out
during a period from 15th July 2022. To 15thSeptember, 2022 under the super- vision of Prof.
Venkateswar Rao, mentor and faculty Institute of Public Enterprise, Hyderabad.

The matter presented in this project work has not been submitted by any one or by me for
the award of any other degree of this or any other Institute/University.

[Signature of the student]

Interim Chinmayi

Roll No. 2103016

Mentor Certificate
This is to certify that the above statement made by the candidate is true to the best of my knowledge
and belief.

Place: Hyderabad Prof. Vekateswar Rao

Date: IPE, Hyderabad

5
 ACKNOWLEDGMENTS

It is a great pleasure for me to express my respect and deep sense of gratitude to my mentor and
guide Prof. Venkateswar Rao, Professor, Institute of IPE, for her wisdom, vision, expertise,
guidance, enthusiastic involvement and persistent encouragement during the planning and
development of this research work. I also gratefully acknowledge her painstaking efforts in
thoroughly going through and improving the manuscripts without which this work could not have
been completed. I am highly obliged to Prof S Sreenivasa Murthy, Director, IPE, and Prof S
Sreenivasa Murthy, Dean Academic and Chairman Placements, IPE and Dr. M.Chandra Shekar,
coordinator of Banking, Insurance and Financial Service, IPE for providing all the facilities,
help and encouragement for carrying out the project work. I am obliged to my parents I. Subba
Rao and I. Vijaya Kumari for their moral support, love, encouragement and blessings to complete
this task.

I also would like to express my deep and sincerely thanks to Kailash R Gandhi, (Director of
KRG) for his constructive suggestions, support and encouragement.
I am also thankful to the anonymous reviewers of my research work. Their comments and
suggestions were very helpful in shaping my project work. I would also like to thank I would
also like to extend my special thanks to Dr. A.S.Kalyana Kumar, faculty and SIP Coordinator,
IPE and other staff members of IPE, Hyderabad, for their timely help and cooperation extended
throughout the course of Summer Internship Programme.

Finally, I am indebted and grateful to the Almighty for helping me in this endeavor.

(Inturi Chinmayi – 2103016)

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 ABSTRACT

Company analysis is an important case law in company’s research.

This company analysis provides deep insight into companies and
focuses on company challenges and opportunities rather than
industries. I analyzed the telecom industry and did a PESTLE
analysis, including the evolution of the telecom industry. I have
analyzed the Bharti Airtel Company using a ratio analysis tool that
helps determine the company's financial situation, growth rate and
various services offered in the telecommunications industry. I also
conducted a SWOT analysis to identify various opportunities and
threats from the external environment and the company's strengths
and weaknesses from the internal environment. By analyzing various
indicators, it shows the position of the company in different aspects.

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 TABLE OF CONTENTS
CHAPTER PARTICULARS PG. NO.
NO.
I. INTRODUCTION

1.1. Fundamental Analysis……………………………… 11

1.2. Need of the Study……………………………………18
1.3. Objectives of the study………………………………18
1.4. Research methodology………………………………18
1.5. Limitation of the study……………………………....19
1.6. About KRG………………………………………….19

II. THEORITICAL FRAMEWORK

2.1. PESTLE Analysis…………………………………22

2.2. Ratio Analysis………………………………….......24

III. INDUSTRY ANALYSIS

3.1. About Industry……………………………………..32

3.2. Evolution of Telecom Industry…………………….32

3.3. PESTLE Analysis………………………………….34

3.4. Key Players in Telecom Industry………………….35

3.5. Revenue of the Telecom Industry ………………....37

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IV. COMPANY ANALYSIS

4.1. About Bharti Airtel………………………………..39

4.2. Important Metrics of Bharti Airtel………………..40

4.3. SWOT Analysis…………………………………..41

V. ANALYSIS AND INTERPRTAION OF DATA

5.1. Revenue of Bharti Airtel…………………………48

5.2. Ratio Analysis……………………………………49

VI. FINDINGS AND CONCLUSIONS

6.1. Findings………………………………………….59

6.2. Conclusions………………………………………61

REFERENCES……………………………………………..63

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 CHAPTER - I
INTRODUCTION

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1.1. FUNDAMENTAL ANALYSIS:
Fundamental analysis is the analysis of a business financial statements, which
helps to analyze income statement, balance sheet and cash flow statements and
we can derive the results like solvency of the companies and its financial health,
returns of the company and its growth rate. This fundamental analysis includes
the economic factors like GDP, inflation, employment, tax rates, production of
the industry, management. It helps to evaluate the present situation and the
future situation of the economy. It contains three stages:

I. Economic analysis
II. Industry analysis
III. Company analysis

Economic Analysis
Industry Analysis

Company
Analysis

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Economy analysis:

The economic analysis helps to determine the growth of the business sector,
mainly related to the capital market. It will predict the future prices of the
economy and forecasts the future survival problems. It implies the increase or
decrease in the GDP, financing of the government, borrowings, inflation rates,
interest rates, money supply and other factors. This economy analysis
determines:

1. The national economy

2. The effect on the national economy based on the changes of international
economy.

Prior to anything else, we must define the issue and ascertain its goal. The next
step is to identify practical possibilities for attaining the objective while taking
into account any constraints.

It is crucial to understand whether an economic analysis is genuinely required to

solve the problem and, if so, how much work will be involved. The next step is
to choose one or more economic analysis techniques.

We must select a strategy that accounts for risk and/or uncertainty if the data to
be used with the economic method are ambiguous. The economic analysis
method(s) and risk analysis methodologies call for certain assumptions and
information gathering.

Industry analysis:

Industry analysis determines an insights into segments, sectors or subdivisions

of economic factors which influences the industry by the changes in this
economic factors. This industry analysis is based on the different products and

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services offered in the economy. This will also include the business cycles of
the particular industry and its stages in it. In this industry analysis, we can go
through the industry information related to particular product or the service
offered. In this industry analysis the companies can find the opportunities
available for the company and future threat situation faced by the company. So
that the company can make a future plans to overcome the situation.

This industry analysis includes Michael Porter's 5 forces model of competition

analysis:

It is a reliable and common practise to deduce methodically identifying the main

competitive pressures in a highly competitive market and evaluating the degree
and significance of such pressures. According to the concept, an industry's level
of competitiveness is the outcome of competitive pressures acting in five
different market segments. Together, the five factors influence the profitability
or attractiveness of an industry.

Threat of recent entrants:

When new businesses are prevented from entering the market, a firm's chances
of becoming profitable are increased. Because they boost production capacity,
which leads to a rise in the supply of the goods at lower prices, new entrants can
dramatically lower the market share of incumbent businesses. Existing
businesses may try to erect entry barriers to deter new entrants.

Bargaining power of customers:

By placing bets on the likelihood that the client will create cartels or gangs, this
force will get stronger. This problem most frequently occurs in industrial items.
Customers for an industry's goods or services might at times put a lot of

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pressure on already-established businesses to provide their goods and services at
a cheaper cost. This will be seen when,

1. Buyers have full knowledge of sources of the merchandise and their

substitutes
2. Day spends plenty of cash on the industries products that's they're big buyers
3. The industries product isn't perceived as critical to the buyers needs and
4. Buyers are more concentrated than firm supplying the merchandise

Bargaining power of suppliers:

Suppliers have a variety of potential impacts on an industry's profitability.
Suppliers have the ability to negotiate with a company when:

1. The customer requires the supplier's products and there are no suitable
alternatives

2. Suppliers may increase the cost of switching.

3. The supply market is more crowded than the demand market.

Rivalry among existing firms:

An important factor in determining an industry's attractiveness and profitability
might be the level of competition inside it. Competitive rivalry is typically
fierce and industry profitability is low:

1. A sector lacks a clear leader

2. There are a lot of rivals in the market.

3. Competitors charge a high price

4. Rivals encounter high exit barriers

5. There are few opportunities for rivals to differentiate their products.

6. The market is expected to develop slowly or less.

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Threat of substitutes:
The availability of alternatives to rain industries' products is one of the last four
factors that may affect industry profitability. Businesses must look for items that
serve the same or nearly the same purpose as their present products in order to
anticipate earnings pressure from this source.

Company analysis:

MEANING

Company analysis consists of measuring the performance and ascertain the

cause of the performance. It includes evaluation of its financial strength and
ascertain its marketing and management activities and its strengths and
weaknesses. The company analysis is mainly focused on three factors:

 Feasibility
 Productivity
 Corporate financial health

These three factors helps to identify the strengths, weaknesses, its opportunities
and threats. So that company can take necessary future actions to handle the
unfavorable situations and utilize the opportunities to maximize the benefit. The
company analysis is used by the internal management and the stakeholder,
internal management is to ascertain the growth of the company and the
stakeholder wants to see about the performance of the company of past few
years.

FACTORS INCLUDED IN COMPANY ANLYSIS:

Company analysis includes two factors for fundamental analysis, which helps to
take the relevant decisions of the company.

 Qualitative factors :

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 1. Business model
2. Competitive advantage
3. Management
4. Corporate governance

 Quantitative factors:
1. Industry growth
2. Competition
3. Customers
4. Financial statements

Business model

The business model helps to represent core aspects of an organization which

includes purpose of the organization, its targeted customers, and strategies used,
infrastructure, and its policies and procedures followed by the business. This
will help the company by providing knowledge to the investors, and provides
future insights to the company for decision making.

Competitive advantage

The competitive advantage means the differentiation part of our company,

where our organization is better than our competitors. These factors helps the
organization to increase sales than its competitors. The competitive advantage
should be more sustainable, so that it is more difficult for the competitors to
neutralize the advantage.

Management

The management helps the organization to done the things effectively to reach
the organizations goals and objectives. The effective management leads to
positive and peaceful ambience at the workplace, so that there will be better
coordination among the departments to achieve the organizational objectives.

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Corporate governance

The corporate governance is policies and procedures or rules and regulations by

which the businesses are operated and controlled. The main factors of corporate
governance are accountability, transparency, fairness, responsibility, and risk
management.

Industry growth

The industry growth is the growth of something i.e. the increase in size or any
development, wealth of the particular sector or industry. If there is growth in the
industry then there is growth in the companies, increase in competitors in that
particular industry. The new product launch will create new industry where new
products and services are available

Competition

The competition of the organization is known by SWOT analysis, which helps

to determine the strengths, weaknesses of the organization and the helps to
know the opportunities and threats for the organization. As the industry gets
older the competitors of that industry will increased more and more. As the new
competitors enters the market there will be wide availability of our product and
services so that there will be decrease in the revenue of the industry.

Customers:

The organization should identify, whether they are reaching the targeted
customers and their company’s value in the minds of the customers. These are
the important factors to be considered related to customers. The companies
should identify the needs of the customer and sell their products or services to

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them. The companies can choose the targeted segments and then they can sell
their products to that particular targeted segments.

Financial statements

The annual reports of the company provides these statements like, balance
sheet, income statement, cash flow statement and statement of changes in
equity. These will helps to the internal and external users by analyzing these
statements and the individuals will decide in which company to invest, so that
they can get more returns rather than their invested amount.

1.2. NEED FOR THE STUDY:

Company analysis helps to provide insights about company and industry’s
growth of revenue. It also helps in determining the market share of our company
and our competitors. By this we can assess the profitability, earning capacity,
and competitive position of the company. This helps in taking decisions in the
company. By this we can find out the strengths and weaknesses of the company.

1.3. OBJECTIVES OF THE STUDY:

The main objectives of the company analysis are as follows:
 To evaluate the firm's earning potential or profitability.
 To evaluate managerial effectiveness and operational efficiency.
 To evaluate the firm's long- and short-term solvency condition.
 To pinpoint the causes of the company's changing profitability and
financial situation.

1.4. RESEARCH METHODOLOGY:

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  Sources of Data:
The data analysis of the study was conducted using secondary data
collected from company’s annual statement and other government
sources.
 The tool used for analysis of Bharti Airtel ltd. is Ratio Analysis, which
helps to analyze the company and its position.
 The analysis is done on past 5 years data, from annual reports of the
company.

1.5. LIMITATIONS OF THE STUDY:

 This research study is only done for 5 years data of Bharti Airtel
Company.
 This study only considers quantitative aspect of the company, but not the
qualitative factors.
 The reasons for fluctuations of the research may not be appropriate and it
shows the comparison trend of past years.

1.6. ABOUT KRG:

KRG Strategy Consultants Private Limited is a non-profit organization
that was founded on March 3, 2014. It's an unlisted private business that's
defined as a company limited by shares.' The authorized capital of the
company is Rs. 1.0 lakhs, with a 100.0 percent paid-up capital of Rs 1.0
lakhs. The most recent Annual General Meeting (AGM) of KRG Strategy
Consultants Private Limited took place on September 29, 2017.
Knowledge Resource Group (KRG) is a professionally managed New
Age business consulting firm that provides a wide range of professional
and interdisciplinary professional services essential to organizational

19
 growth, helping clients develop short- and long-term business meet your
needs. Our value proposition is about both the incredible breadth and
depth of our internationally proven solutions, helping clients compete in
rapidly changing markets that require both skill and agility. Provides
superiority.

Mission:

To achieve Client Satisfaction by providing Excellent, Innovative, Value-Added

Services as well as Technology Oriented Solutions on TIME.

Services:

The KRG provides best and value added services that are designed to meet the
requirements of the clients and various business demands. This provides
benchmarked solutions, which provides a competitive edge to the client in a fast
changing economy that needs both ability and agility. The different types of
services provided by KRG are,

 Audit
 Advisory services
 Tax and legal services
 Outsourcing
 Wealth management
 Training and development.

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 CHAPTER II

THEORITICAL FRAMEWORK

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2.1 PESTLE ANALYSIS:
In PESTLE analysis we work on five factors which will affect our industry,
which helps us to solve problems and we can take proper measures to come out
of the problems and solve the problem related to our organization. In this
analysis we can see the macro environment forces which will helps to identify
the opportunities and needs of the company or organization or the sector of the
economy. By doing this PESTEL analysis helps to the organization helps to
identify the opportunities and threats to the company or industry or the
economy. This will help to formulate the future plans for opportunities to
succeed in the market or in the economy. This will also tell us the future threats
to be caused to the economy which will help to formulate certain measures to
overcome the threats and overcome the struggles of the economy. The acronym
PESTLE abbreviates the following

P – Political factors

E - Economic factors

S – Social factors

T – Technological factors

L – Legal factors

E – Environmental factors

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Political factors:
The political factors in a country includes the government, fiscal policy,
monetary policy and the budget which influences an industry by these factors is
called as political factors. The change in these factors will be having the direct
effect on the daily operation of the business and on the financial aspects of the
business.

Economic factors:

It is very difficult for a company or the organization to change the economic

factors in the economy it is not controlled by the company. So the organizations
should be ready to face the different fluctuations that may take change the
economy by pre analysis. So every organization should observe the changes
takes place in the economy and face the changes by taking certain measures.

Social factors:

The social factors include population, age, distribution in the economy, by

which we can understand the behavior of the individuals and helps in facing the
market and withstand in the market. These social factors also influences
different factors like the communication, fashion, media and others which helps
the company to analyze the different types of individuals in the society.

Technological factors:

Now a days technology is increasing day by day, so every company in the

industry should upgrade to the technology and run along with the world. This
helps to easy development of the company and helps to reach to the targeted
position. Therefore the technology also helps the company to know the factors
which effects the economy and the required measures to be taken to sustain in
the industry because of other factors.

Legal factors:

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The legal factors includes the laws and regulation to be followed by the
company to take the necessary action and if any new laws or rules were formed.
The company should be known and follow the rules, if not it may leads to
several consequences. So each every company in the industry should know the
new rules and regulation formed by the law and follow them.

Environmental factors:

No one in the world can control the environmental factors, anything can happen
at any time. If any unpredicted factors like tsunami, floods, earthquakes and
other natural disasters occurs there is a lot of changes can take place in the
industry and the companies should be sustain by overcoming these disasters. So
each and every company should keep the safety measure to overcome these
difficulties.

2.2 RATIO ANALYSIS:

Ratio analysis is the examination of several financial data points seen in an
organization's financial statements. They are usually used by outside analysts to
evaluate a company's profitability, liquidity, and solvency, among other things.
It is the analysis of various financial data points seen in an organization's
financial statements. They are usually used by outside analysts to evaluate a
company's profitability, liquidity, and solvency, among other things.

Importance of Ratio Analysis:

 Comparing the financial performance of two organizations is one of the

most crucial benefits of ratio analysis.
 Activity ratios are frequently used by businesses to identify various
performance patterns. Businesses make use of financial statement
information gathered across several financial reporting periods. Future

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 financial performance can be predicted using the trends seen. Analysis of
financial ratios may also be used to evaluate how well assets and
liabilities are managed. It assists you in figuring out whether the
resources of your business are being used too much or too little.
 Through the use of measures for liquidity, profitability, solvency,
efficiency, and earnings, it is also helpful for evaluating its financial
status.
 These ratio analyses are a tool for both internal and external users of the
firm to analyses the company.
 Investors use this information to invest in the company or not, by using
the earnings ratios and profitability ratios.

Classification of Ratios: There are several ratios, each of which has a specific
aspect for analyzing the company's status. Here is a list of the various categories
of ratios. Every form of ratio controls a different component of the business. No
matter how fantastic it is. Some of the ratios will define its financial situation,
some will determine the profit made, and after that it may achieve its long-term
or short-term obligation goals. These ratios can be useful in a variety of ways.
Creditors primarily look at the company's ability to fulfil its obligations. For
solvency ratios, banks and the government will also be referred.

Profitabiliy Liquidity Turnover Solvency Earnings

Ratios Ratios Ratios Ratios Ratio

Gross Profit Inventory

Quick ratio P/E Ratio
Turnover
Debit-Equity

Net Profit
Receivable Earnings per
Current ratio
Turnover share
Operating Profit
Intreset
25 Assest
Fixed Coverage Retun on net
Return on Cash Ratio
Turnover worth.
capital invested
 i. Liquidity ratios:

By using its present assets, a company's capacity to pay down its debt is
measured using liquidity ratios. The quick ratio, current ratio, and cash
ratio are among the liquidity ratios. Banks, creditors, and suppliers will
evaluate these measures to determine if the firm is completing its
financial obligations on time.

 Current ratio: The current ratio is the easiest liquidity measure to

calculate and comprehend. Anyone may easily see the line items for
current assets and liabilities on a company's balance sheet.
Current ratio = Current assets/ Current liabilities

 Quick Ratio: The quick ratio is a stricter liquidity test than the current
ratio. Both are equivalent since current liabilities make up the
denominator and current assets make up the numerator.

Quick Ratio: (Cash + Accounts Receivables + Marketable

Securities) / Current Liabilities

ii. Solvency Ratios:

Long-term financial viability of the firm is determined by these solvency
ratios. These ratios will evaluate the debt in relation to the company's
assets, equity, and profits. Debt equity ratio and interest coverage ratio
are two examples of crucial solvency ratios. The government, banks, and
other institutional investors all employed these ratios.

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 Debt- equity ratio: As it demonstrates how the firm is financed by debt,
the D/E ratio in this instance is comparable to the debt to assets ratio. The
ratio increases with the amount of debt the firm has on its books and the
likelihood that it may default. This ratio reveals how much of your debt,
in the event that the business must be liquidated, can be paid off with
equity.
Debt to Equity Ratio=Equity/Debt Outstanding

 Interest coverage ratio: The interest coverage ratio calculates how

frequently a business may use its available revenues to meet its
continuing interest obligations. In other words, it calculates how much of
a margin of safety a company needs to pay interest on its debt over time.
The ideal ratio is one that is greater. If the ratio falls below 1.5, it can
mean that the business is having problems covering the debt's interest
payments.

Interest Coverage Ratio=Interest Expenses/EBIT

iii. Profitability Ratios:

The company's capacity to turn a profit while incurring its proportionate
costs will be assessed by its profitability ratios. These ratios will be useful
in comparing the performance of the peer firms to their rivals. This
includes metrics like return on equity, return on assets, profit margin, and
ROCE, among others (Return on Capital Employed).

 Return on Equity: The return on equity (ROE) of a business is calculated

by dividing net income by equity capital. ROE is a metric for assessing a
company's profitability and the effectiveness with which those profits are

27
 produced. A corporation may generate more profit through equity
financing the higher its ROE.
Return on equity = Total Equity/ Net Income

 Return on Assets: The return on assets (ROA) ratio assesses how

effectively a firm manages its assets to produce long-term earnings.
Given that a company's assets are mostly used to produce revenue and
profits, managers and investors might benefit from understanding this
balance sheet ratio. This aids in assessing how effectively a business
turns capital expenditures into income.
Return on Assets=Total Assets/Net Income

 ROCE (Return on Capital Employed): Return on Investment (ROI) or

Return on Capital Employed (ROCE) is a profitability metric that assesses
how well a business can earn a profit from its capital. Investors generally
utilise this crucial indicator while seeking for organisations in which to
invest.
ROCE = Earnings before Interest and Tax/ Capital Employed

 Profit margin: After accounting for COGS, a company's gross profit

margin represents its profit. The amount that is left over after operating
costs and COGS have been paid is known as the operational margin. Pre-
tax margin represents a company's profitability before additional non-
operating sales expenditures are taken into account. The capacity of a
business to make money after subtracting all expenses and taxes is known
as net profit margin.
Profit margin = (Revenue – Cost / Revenue)*100

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 iv. Efficiency Ratios:

This ratio will show how well the business is using its resources to
produce sales and profit. Sales and corporate profit will rise together with
an improvement in the efficiency ratios, and vice versa. Asset turnover
ratios, inventory turnover ratios, and others are examples of efficiency
ratios.

 Asset turnover ratio: Asset turnover ratio gauges how well a business's
assets produce income or sales. On a yearly basis, compare the volume of
sales (revenue) with the total assets. Therefore, divide net sales or
earnings by the average total assets to find capital turnover.
Asset turnover ratio= Net Sales / Average Total Assets

 Inventory turnover ratio: Inventory turnover quantifies how much stock

must be kept on hand to accommodate a specific sales volume. The kind
of production flow system being utilized, the presence of out-of-date
inventory, the management strategy for order processing, the quality of
inventory records, the usage of manufacturing outsourcing, etc. can all
have an impact.
Inventory turnover ratio = Cost of Goods Sold/ Average Inventory

 Accounts Receivables turnover ratio: Accounts receivable turnover

gauges how well a company can recover its receivables, or the credit it
extends to its clients. This ratio also calculates the frequency with which
a company's receivables have been converted to cash over time.
Accounts Receivable Turnover Ratio = Net Credit Sales / Average
Accounts Receivable.

v. Earnings ratios:

29
 This ratio will tell the investor how much return they may expect from a
certain investment. Earnings might be expressed as EPS or dividend. This
includes metrics like the P/E ratio, dividend payout ratio, and EPS.
 EPS (Earnings per Share): The profitability indicator known as earnings
per share, or EPS, gauges a company's profitability. It is determined by
dividing the net revenue by the total number of outstanding shares.
EPS= Earnings available to equity shareholders/ Total no. of shares
outstanding.

 Dividend payout ratio: The dividend payout ratio calculates the amount
paid out to shareholders in relation to the amount of net income a
company generates.
Dividend payout ratio= Dividend per share/ Earnings per share

 P/E Ratio: The P/E Ratio creates a relationship between an enterprise's

stock (share) price and its earnings per share. Customers may benefit
greatly from knowing how profitable the company's stocks are now and
how profitable it will be in the future since it will pique their attention.
P/E Ratio= Market value per share/ Earnings per share.

30
 CHAPTER-III
INDUSTRY ANALYSIS

31
3.1 TELECOM INDUSTRY ANALYSIS:
India is the world’s 2nd largest telecommunication market. Our India has the
second highest number of internet users in the world. The density of
telecommunication sector is at 84.88% as of April 2022. The gross revenue of
telecom sector is Rs. 64,801 crore in the first quarter of 2022. To drive the
development of 6G technology, the department of Telecommunications (DOT)
has developed a sixth generation innovation group. Over the past seven years,
the Indian telecommunications tower industry has grown by a staggering 65%.
The number of base stations has increased from 4, 00,000 in 2014 to 6, 60,000
in 2021. Similarly, the number of base stations also grew 187% faster, from
800,000 in 2014 to 2.3 million in 2021. Telecommunications have played a key
role in helping India's socio-economic development and to some extent
narrowing the digital divide between urban and rural areas. Also, the adoption
of e-governance in India has increased the transparency of governance.
Government has made practical use of modern telecommunications equipment
to provide mass education programs to rural India.

3.2 EVOLUTION OF TELECOM SECTOR:

The evolution of the telecom sector in India in 3 stages

STAGE I – TILL 1990 – STATE OWNED ERA

In this stage the government runs this telecom sector. In the year 1882 the
telephone services began with a manual service in Kolkata. This was under the
control of Department of Telecommunications (DOT). This DOT is only
responsible for all the telecommunication till the year 1986. Then MTNL
(Mahanagar Telephone Nigam Limited) and VTNR (Videsh Sanchar Nigam

32
Limited) were separated from the Department of Telecommunications and
started their function in metro cities Mumbai and Delhi and other international
long distance operations. This separation gives rise to 2 nd phase of evolution of
telecom industry.

STAGE II – TILL 2000 – ADVENT OF PRIVATE PLAYERS

In the year 1994 a policy was introduces a new policy called National Telecom
Policy (NTP) for the private companies. Then new evolution in this stage is
formation of TRAI (Telecom Regulatory Authority of India) in the year 1997.
TRAI was formed because of the maintenance of smooth cellular services
between the customers and the private companies. In the year 2000 an another
organization was formed called TDSAT (Telecom Disputes Settlement and
Appellate Tribunal) which is formed for settlement of disputes between the
customers, operators, subscribers, government. This is the period were the
telecom services between the people were increased rapidly and there is new
innovation into the markets for which the customers are attracted to much and
many of them in a situation that each family in the urban cities can afford a
cellphones. After this period the government started issuing more licenses to the
companies were the third stage was started.

STAGE – III

Here the stage 3 was separated into two phases called phase-1 and phase-2 with
different names

STAGE – III – PHASE-1 – GOLDEN ERA

The phase-1 of stage 3 called as golden era, where the increase in the number of
mobile users and there is a rise 5G network in the mobile users. In this the

33
government increased its FDI (Foreign Direct Investment) from 49% to 74% as
in this period the mobile users all over the world has increased so this is the best
period for the India to invite foreign investors to invest in our country so its
helps our country to generate revenue in this phase.

STAGE – III – PHASE- 2 – FROM 2010 TO TILL NOW – RE-DEFINITION

AGE

In this re-definition phase there is an introduction of 3G in 2008 and 4G in

2012. This introduction of these 3G and 4G networks there is a huge increase in
usage of smartphones in India. This increases vedio calling, downloads, games
and others were attracted many customers. After all these 2G, 3G, and 4G, now
5G is all set to launch in our country.

3.3 PESTEL ANALYSIS OF TELECOM SECTOR:

Political factors:

Customer want the internet and Wi-Fi as the basic human right. The
government has an idea how the telecom sectors to be handled but the
customers overview is totally different. This is a big political fight between the
people, service providers and the government.

Economic factors:

There are different factors like interest rates, inflation and taxes affect the
telecommunication industry. The prices were decided depending upon location,
amount of customers in an area and the need for telecommunication services for
the people. By these factors there is an increase in the prices.

Social factors:

34
The expansion of telecommunications in rural areas is challenging and
expensive. They utilize packages to connect with friends, take part in social
media competitions, make online purchases, find stable employment, and more.
A significant part of the average person's everyday life now involves
telecommunication.

Technological factors:

The requirements for telecom services are advancing day by day. The
requirements of the telecom sector leads to increase in investments in
companies which are the strong influencers over telecom developments in
computers, smartphones and laptops.

Legal factors:

The telecommunication industry will always be having a legislative concerns.

Mainly the problems will be faced from monopolies of the industry, customers,
and the government. However the telecom sector permits the import and exports
of the telecom products for further development.

Environmental factors:

The factors like changes in climate, global warming will affect the telecom
sector to reach the customers. The products come and go, so every product is
replaced with the advanced one. The old version will become unnecessary. This
leads to unemployment.

3.4 KEY PLAYERS MARKET SHARE IN TELECOM

INDUSTRY:
In telecom industry these are the major players which contributes major revenue
to the telecom sector. The first key player, Reliance has nearly 36.5% of market

35
share, then second place was taken by Bharti Airtel with 27.5% market share
and then in third place VI (Vodafone and Idea) has a market share of 23.5%.
Then next fourth place was BSNL with market share of 9.9% then the fifth
place was taken by MTNL with market share of 0.29%. These the main
companies which contributes its major services to the telecom sector.

MARKET SHARE
40.00%

35.00%

30.00%

25.00%
MARKET SHARE
20.00%

15.00%

10.00%

5.00%

0.00%
RELIANCE BHARTI AIRTEL VI BSNL MTNL

SOURCE: www.ibef.org Graph – 3.1.

36
 3.5 REVENUE OF TELECOM INDUSTRY:
The Indian Telecom sector’s gross revenue declined to US$ 37.36 billion in the
year 2021 from US$ 40.29 billion, 2016 and the revenue of the first quarter of
financial year 2022 is of Rs. 64,801 crores. But there is a growth of 4.16% in
the revenue of the telecom sector from the year 2020 to 2021.

Revenue
45
40.29 40.93
39.49
40 37.362
35.87
35 33.97

30
25
20
15
10
5
0
2016 2017 2018 2019 2020 2021

SOURCE: www.ibef.org Graph – 3.2

Here in this figure we can observe the revenue of the telecom sector of past 5
years. The revenue in the year 2017 was increased by 1.5%, in 2018 there is
decrease in revenue of 3.5%, in 2019 decreased by 14% and increased by 5.5%
in 2020, and increased by 4.15% in the year 2021. There is growth of revenue
from the year 2020 to 2021 and increase in 2020 than 2019. There is a decline
in the years 2018 and 2019 as compared to the year 2017. Presently the revenue
from the past two years has been increasing because of decreasing in the license

37
fee to 6% of Adjusted Gross Revenue (AGR) from 8%. This is about a relief of
Rs. 3000 crores annually to the operators.

CHAPTER - IV
COMPANY ANALYSIS

38
4.1. COMPANY ANALYSIS OF BHARTI AIRTEL LTD.

Bharti Airtel Limited also known as Airtel, it is an Indian multi-national

telecommunications network services from Delhi. It is the second largest
provider of mobile telephony after JIO. It has grown to global communications
solutions in past 25 years with 471 million consumers, it operated nearly 18
countries in in Asia, Africa and in Channel Islands. Presently it provides 4G and
4G+ networks and updating its infrastructure to 5G network.

It offers telecom services under the Airtel brand, and is headed by Sunil Bharti
Mittal. Bharti Airtel was incorporated in the year 1995 by the name of Bharti
Tele-Ventures Ltd. the name was changed to Bharti Airtel Ltd in the year 2006.
It launched its first services in Delhi and Himachal Pradesh. In the year 1997-98
the company has become the first private telecom operator and obtains a license
to provide basic telephone services in Madhya Pradesh. Now it is one of the
leading telecom service provider in India. It offers different types of services
and products like:

 Fixed line telephone

 Mobile phone

39
  Satellite television
 Payment bank
 Broadband
 Internet television
 Digital television
 IPTV

It contains the ownership of Bharti enterprises of 35.85%, SingTel of 31.7% and

Google has 1.28% of stakes in this Bharti Airtel. It has many subsidiaries like
Airtel India, Airtel Digital TV, Airtel Sri Lanka, Airtel Africa, Airtel Vodafone,
Robi, and Wynk. So it has become a second largest provider of fixed Telepathy
after Reliance. Year by year the subscribers of Bharti Airtel are increasing more
and more. The growth rate of the year 2022 has increased tremendously as
compared with past years. This increase in growth attracts big investors to
invest in their company like Google. This will helps to increase in goodwill of
the company. There may be more increase in future years as a forecast as there
is a huge increase in this year 2022.

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 customers for life.

4.2. IMPORTANT METRICS OF BHARTI AIRTEL

COMPANY:

40
Some of the important metrics to analyze the telecommunication company are
Average Revenue per User, subscriber growth and churn rate. This factors
determine the company growth, and its sustainability. This will help to analyze
the factors like is there any increase in profits of the company. There is any
growth of the company

 ARPU (Average Revenue per User):

The ARPU is one of the important metric in the telecommunications industry. It

helps in determines company’s operational performance. The main thing is to
maximize the profit and decrease the cost of servicing each end user is one of
the main key to the company. This ARPU also helps in measuring marginal
profit and cost. It also tells the maximum utilization of the resources of the
company in a better way. Generally Telecommunications company offer
bundling services to enjoy the higher ARPU. The ARPU of Bharti Airtel
Company of 1st quarter of 2022 is increased to Rs. 183 from Rs. 146. This
shows a good growth rate of 20.21%.

 Subscriber Growth:

The main metrics of the telecommunication company is to increase the

customer base, steady subscriber growth, retaining the customers and other
things. The main attribute of growth in the revenue is increase in the customer
base, and attract new customers. A constant increase in the subscriber growth
will indicates competitive. The customer base of Bharti Airtel has increased to
491.26 million. It is an increase of 4 % as compared to last year.

 Churn rate:

The churn rate measures about the count of subscribers who leave is often
reported quarterly or annually. All the services in this company record the churn
rate which is recorded in percentage. The low churn rate is a good sign for the
company. High churn rate determines customers of our company has been

41
changing to different one. The Bharti Airtel Company’s churn rate has
decreased to 2.9% as compared to 3% of last year. This is a good sign to the
company.

4.3. SWOT Analysis of Bharti Airtel:

SWOT analysis is a tool which helps to analyze the company’s strengths,
weaknesses, opportunities, and threats. These SWOT analysis includes two
factors called internal factors and external factors. Internal factors were related
to factors which can be controlled by the company itself and external factors
were related to external environment of the business were the industry will
control these factors. These external fact0ors will give a chance to the company
to utilize the opportunities generated by the industry and helps to expand the
organization by utilizing the opportunities in the correct way. The threats were
the factors were the company should take the proper measures to overcome the
difficult situations. This will help the company to preplan and overcome the
threats. The internal factors like strengths should be developed by the company
by proper utilization of the resources and then the weaknesses the company
should overcome by improving the mistakes they have done and be conscious
by not repeating those mistakes.

Strengths Weakness

Opportunity Threats

42
  STRENGTHS:

Advertising: Celebrity brand ambassadors have helped the company to a good

extent in advertising. The brand visibility of Airtel is also quite high in
television commercials, banner advertisements on social media, etc.

Customer Base: With about 352 million users, Airtel is one of the most well-
known mobile service providers in India. There were 403 million Airtel
customers worldwide as of 2019. Additionally, Airtel offers a worldwide
undersea cable television service that links Singapore and India. Sri Lanka,
Bangladesh, and Africa are just a few of the nations where Airtel has a sizable
user base.

Widespread infrastructure: Tower Airtel has expanded its infrastructure

across the nation through partnerships with Idea and Vodafone and the
construction of the Indus, which aids them in attracting new consumers.

Other Services: In addition, Airtel offers its customers services based on data
and applications, data centres, the cloud, and digital media.

Marketing that is distinctive: Airtel as a company invests much in marketing

techniques and works to create innovative marketing campaigns to get the
attention of customers. The company has run a number of other innovative
marketing efforts that have had an impact on the marketplace. They are well-
known in the social media marketing industry, which has brought them a lot of
business. Visit IIDE's Social Media Management Course to get started if you
want to learn how social media can continue to be relevant.

43
Strategic Alliances: Involved parties for Airtel include Sony Ericsson, SingTel,
Nokia, and even Apple. Such strategic relationships have been demonstrated to
boost brand equity and aid in company development.

 WEAKNESS:
Operations Outsourcing: Airtel was able to lower its rates thanks to
operations outsourcing. This increases the likelihood that the corporation
will care deeply about other businesses, which might have an impact on
its operations.

African operations: Airtel purchased Zain's African Business in 2013

for a hefty sum of almost $9 billion, however the company has yet to
report any returns on that investment.

High Debt: Airtel has a significant debt load. This may be the result of
their purchases turning out to be poor investments, as well as excessive
credit and low profits.
 OPPORTUNITIES:

Strategic Partnership: In terms of MNP (Mobile Number Portability in India),

collaborating with smartphone manufacturers is the best course of action. Future
fixed cash flows are guaranteed, and a larger client base is likewise guaranteed.

Market expansion: Given the fierce rivalry in the telecommunications sector

and the decreasing profit margins, the company will benefit by entering new
markets and growing economies.

44
Untapped market potential: Even in remote locations, where 4G service is
now available, such networks should be offered. Increasing infrastructure will
also result in greater connection. The company should strive to offer these
services throughout the majority of its locations since doing so would help it
increase its earnings and attract more clients.

5G: the current technological developments and 5G experiments might

potentially be quite successful for the company. Since 5G and LTE services
don't yet seem to be very widespread throughout the nation, especially in rural
cities, Airtel can expand their offerings in this area to attract more clients.

 THREATS:

Jio 5G: Jio has been offering customers quicker network services and has made
significant advancements in 5G technology. Jio's coax cable services, known as
Jio Fibre, have attracted a lot of interest due to its low cost and excellent
internet speed, which almost never fluctuates.

Government Regulatory Framework: Because corporations with greater

resources are more likely to benefit from these auctions, there is a potential
danger to the stability of the market as a result of the conventional auctioning of
spectrum and changes in government policy.

Competition: Airtel's company is being severely harmed by the constantly

fluctuating rates on the Indian market as well as the growing margins. A few
years ago, Reliance Jio began offering free calling and data, which had a major

45
impact on the telecom industry and led to price reductions from other
businesses.

MNP (Mobile Number Portability): Due to Airtel's higher prices compared to

other service providers, there is a significant chance that customers would
switch to less expensive service options under MNP (Mobile Number
Portability), a set of laws that allows customers to leave the company while
preserving their number.

46
 CHAPTER – V
ANALYSIS AND
INTERPRTATION OF
DATA

47
 5.1. Revenue of Bharti Airtel (2013- 2022):
The revenue of the company tells about the revenue generated by the Bharti
Airtel Company, by rendering its services to its services to its customers
throughout India and Africa and other countries. This is one of the leading
network in India. The below Graph represents the revenue of Bharti Airtel Ltd.
of past 10 years. As we can observe there is an increase and decrease in the
revenue in past 10 years of the company. There is growth of revenue in the year
2022 as compared to 2021. The revenue for the year 2022 is Rs. 1, 16,547

140000

116,547
120000
100,616
100000 96,101 96,532 95,468
85,864 82,639 80,780 84,676
76,947
80000

60000

40000

20000

0
year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

crores. This is an increase of

Graph – 5.1

approximately 16% as compared to last year and it is a growth of 51% of its

revenue as it is compared to last 10 years. This is a high growth for Bharti Airtel
when compared to previous years in the year 2022.

48
From the year 2013 it is growing its revenue in every year, it has been raising its
revenue till the year 2016. In the year 2017 the revenue has decreased because
reliance has come up with a new telecommunication network called JIO. Then
the revenue has decrease in the year 2018 to 82,639. This is 13.43% decline rate
of its revenue when compared with 2017. Then in 2019 again it decreased and
recorded very low revenue in past 10 years of 80,780. Then by the years with all
its efforts it has increased its revenue in the year 2020 to 84,676. Then onwards
there is a continuous increase its revenue and recorded highest revenue of
1, 16,547 in the year 2022. This is first time for the company to have this much
revenue as compared to past years.

5.2. RATIO ANALYSIS:

Here are the different ratios which will help to analyze the company and its
financial performance of the company. This ratio analysis of the Bharti Airtel
Company helps the internal and external users of the company. The internal
users will checkout the liquidity position, then its profit growth from year to
year, based on these ratios the company will take certain decisions to improve
its performance and increase its growth. Then external users will checkout
whether the company is able to pay the returns to the shareholder, then whether
the company is recovering its amount from their credit customers, then the
interest is paid to the debt holders or not then what is the earnings per share
earned by the company. By observing these ratios the investors can make the
decision to invest in the company or not. These type of ratios were calculated on
Bharti Airtel Company.

LIQUIDITY RATIOS:

49
 Years 2018 2019 2020 2021 2022
Current ratio 0.72 1.12 0.85 0.63 0.61
Quick ratio 0.6 0.5 0.7 0.58 0.52
Table- 5.1

The below graph shows the liquidity ratios of current ratio and quick ratio. This
ratios will determine the liquidity position of the company. This liquidity
position will helps to determine the company can meet its short term obligations
with its current assets. The current ratio of this company will has recorded
highest in the year 2019 of 1.12 as compared with other years. This current ratio
has been decreasing for every year. The lowest current ratios is recorded in the
year 2022 of 0.61. This is continuous decrease for past three years. Then
coming to Quick ratio the company has recorded the highest in the year 2020 of
0.7, then lowest ratio will be recorded in the year 2019 of 0.5, then from the past
years the quick ratio is decreasing. This quick ratio will includes all the current
assets except inventory.

Liquidity Ratios
1.2 1.12

1
0.85
0.8 0.72 0.7
0.6 0.63 0.61
0.58
0.6 0.5 0.52

0.4

0.2

0
2018 2019 2020 2021 2022

Current ratio Quick ratio

50
 Graph – 5.2

SOLVENCY RATIOS:

Years 2018 2019 2020 2021 2022

D/E Ratio 1.44 1.58 1.61 2.52 2.41
Interest coverage ratio 4.37 2.84 3.16 3.62 4.36
Table – 5.2

These solvency Ratios will determine the company position whether it is able to
pay its debt based on its earnings and how many times the interest will be
covered on profit earned by the company. The below graph shows highest debt
equity ratio in the year 2021 of 2.52 and it has decreased to 2.41 in the year
2022. Then coming to interest coverage ratio the ratio has recorded highest in
the year 2018 of 4.37, then it is followed by the year 2022 of 4.36. It has
recorded lowest in the year 2019 of 2.84. This will determine how the profit of
the company will comprising its interest to be paid to the debt holders. The Debt
equity ratio will determine the stability of the company to pay its long-term
liabilities. This will be the one of the important metric to analyze the company.
So the debt equity ratio of the company has been increasing year by year and it
decreased in the year 2022.

51
 Solvency Ratios
5 4.37 4.36
4 3.62
3.16
3 2.84
2.52 2.41
2 1.44 1.58 1.61
1
0
2018 2019 2020 2021 2022
D/E Ratio Interest coverage ratio

Graph – 5.3

Profitability Ratios
20.00%
10.00%
10.00% 6.42% 4.67%
7.08% 6.39%
1.58%0.43% 3.07% 1.17%
0.57% 0.14%
0.00%
2018 2019 2020 2021
-4.35%
2022
-10.00% -8.92%
-20.00%
-30.00% -25.58%

-40.00%
-41.71%
-50.00%

ROE ROA ROCE

Graph – 5.4

PROFITABILITY RATIOS:

Years 2018 2019 2020 2021 2022

ROE 1.58% 0.57% -41.71% -25.58% 6.39%

52
 ROA 0.43% 0.14% -8.92% -4.35% 1.17%
ROCE 6.42% 3.07% 4.67% 7.08% 10.00%
Table – 5.3

The above graph determines the profitability ratios of Bharti Airtel Company.
The Return on equity has been decreased in past years. The very lowest ratio
recorded in the year 2020 of -41.71%, by 2022 it has become positive of 6.39%.
Then Return on Assets has recorded highest in the year 2022 of 1.17% it has
lowest and negative of -8.92% in the year 2020. Coming to Return on Capital
Employed, it has positive in all the years. It has the highest of 10% in the year
2022, it has recorded lowest in the year2019 of 3.07%. It has increased its
ROCE of past years.

Years 2018 2019 2020 2021 2022

Gross profit marigin

36.11% 33.36% 43.88% 45.73% 49.82%
Net profit margin
1.33% 1.64% -35.77% -12.19% 5.04%
Table – 5.4

The below graph shows Gross Profit Margin and Net Profit Margin of past 5
years. Gross profit margin it has been increasing year by year. It has highest
Gross profit margin in the year 2022 of 49.82%. It has recorded the lowest in
the year 2019 of 33.36%. Then Net profit margin has highest % in the year 2022
of 5.04%. It has become positive from the year 2021 of -12.19%. It has very
lowest in the year 2020 of -35.77%. It has been positive in the years 2018, 2019
and then suddenly becomes negative in 2020, 2021 and then it became positive
in 2022 with highest margin.

53
 Profitability Ratios
60.00%
49.82%
43.88% 45.73%
40.00% 36.11%
33.36%

20.00%
5.04%
1.33% 1.64%
0.00%
2018 2019 2020 2021 2022
-12.19%
-20.00%

-40.00% -35.77%

-60.00%

Gross profit marigin Net profit margin

Graph – 5.5

EFFICIENCY RATIOS:

Years 2018 2019 2020 2021 2022

Asset turnover ratios 33.49 29.35 24.26 29.07 0.22

Inventory turnover
ratios 1211.21 913.8 557.93 378.25 0

54
 Table – 5.5

Efficiency Ratios
1300
1211.21
1200
1100
1000
913.8
900
800
700
600 557.93
500
400 378.25
300
200
100 33.49 29.35 24.26 29.07 0.22 0
0
2018 2019 2020 2021 2022

Asset turnover ratios Inventory turnover ratios

Graph – 5.6

The above graph show the efficiency ratios of the Bharti Airtel
Company. We can observe that the Asset turnover ratio has recorded
very low in the year 2022 of 0.22. It has the highest Ratio in the year
2018 of 33.49. Then Inventory turnover ratio has been decreasing
every year of past years. It has become 0 in the year 2022. It is the
lowest of past years. The highest ratio of Inventory turnover was
recorded in the year 2018 of 1211.21, it has decreased gradually and
become 0 in 2022.

55
 EARNINGS RATIOS:

Years 2018 2019 2020 2021 2022

Dividend Pay-out Ratio 9.08% 11.07% 0% 8.67% 0%

Retention Ratio 90.92% 88.93% 0% 91.33% 0%

Price Earnings Ratio 0.74% 0.32% -15.24% -5.38% 1.01%

Table – 5.6

Earnings Ratios
100.00%
90.92% 91.33%
88.93%

80.00%

60.00%

40.00%

20.00%
11.07% 1.01%
9.08% 8.67%
0.74% 0.32% 0.00%0.00% 0.00%0.00%
0.00% -5.38%
2018 2019 2020 2021 2022

-20.00% -15.24%

-40.00%

Dividen Payout Ratio Retention Ratio Price Earnings Ratio

Graph – 5.7

56
 These are some of the earnings ratios, the sum of retention ratio and dividend
payout ratio are the remaining earnings. The dividend were declared in the years
2018, 2019, 2021 only. In these years the highest payout ratio is in year 2019 of
11.07% and retained 88.93%. Then in the year 2021 it paid 8.67% and retained
91.33%. Then in the year 2018 it paid dividend of 9.08% and retained 90.92%.
Then coming to Price earnings ratio it will be calculated by dividing market
share with earnings per share. The lowest P/E ratio is recorded in the year of
2020 of -15.24% and the highest ratio of positive in the year 2022 of 1.01%.

Earnings Ratio
900

800 758.5

700

600
511.2
500
416.14
400 371.88
300.15
300

200

100
2.75 0.96 -27.52 7.67
0
2018 2019 2020
-63.41 2021 2022
-100

-200

EPS MPS

Graph – 5.8

57
 Years 2018 2019 2020 2021 2022

EPS 2.75 0.96 -63.41 -27.52 7.67

MPS 371.88 300.15 416.14 511.2 758.5

Table – 5.7

In the above table we have the figures of Earnings per share and Market price
per share. From these figures we have negative EPS in the years 2020, 2021.
Then in the year 2022 the company has earned the highest EPS in the year 2022
of 7.67. Then coming to Market share price the company has highest market
price in the year 2022 of 758.5. The MPS of Bharti Airtel ltd. has been
increasing year by year. Now in the market this company has huge market share
and stand at second place in the market. This is one of the leading Telecom
Company in its market. Bharti Airtel stands at 2 nd place after Reliance in Indian
Telecom Industry.

58
 CHAPTER - VI
FINDINGS AND
CONCLUSIONS

59
6.1. FINDINGS:
The findings that were drawn from above data interpretation and analysis are as
follows:

 The revenue of 2022 has a growth of 16% when it compared to last year’s
revenue. The growth rate of 2021, when compared with 2020 is 18%. By
this factors we can see that the growth was decreased by 2%. But the
revenue has increased by Rs. 15,931 million.
 The current ratio has been decreasing from past 2 years. By this we can
say that the company is increasing its current liabilities as equal to current
assets.
 As the current ratio is decreasing the quick ratio will also decreased. The
quick ratio excludes only the inventory of current assets. But the quick
ratio is always higher than current ratio.
 In Debt Equity ratio the company’s debt equity has been increasing every
year and decreased in 2022. The standard ratio is 2.5, the company is
under the standard limit, and this indicated the company is not under the
debt risk.
 The interest coverage ratio has been increasing from past 2 years. This
shows that the debt holders having their share of interest coverage in
company’s earnings.
 The Return on Equity of the company has positive in the year 2018 and
decreased in the year 2019 and becomes negative in the year 2020. This
has a negative growth in 2020. It has increased growth rate in the year
2022 to 6.39%.
 The Return on Assets of the years has a growth rate of 172% as compared
2022 with 2018 of the company. This is a great increase of return when
compared to past year.

60
 ROCE is always positive in all the years. It has increased by 3.58% in the
year 2022 when it compared to 2018. It indicates that, there is an increase
in the profitability position when compared to other companies.
 The Gross profit margin is always positive and it is increasing every year,
but coming to Net profit Margin there we have negative percentage in the
years 2020 and 2021.
 The Asset turnover ratio has fluctuations till 2021 and it decreased
completely in the year 2022 to 0.22. This shows that the company is not
utilizing its assets completely to increase their sales.
 The Inventory Turnover ratio has been decreasing tremendously every
year and reached 0 in the year 2022. This shows that the company is not
holding its inventory as long as previous time periods.
 The profit which are available to shareholders are declared as dividend
and remaining profit will be retained by the company. The dividends
were not paid in the years 2020 and 2022. The retained earnings were
more in every year as compared with dividend payout ratio.
 The P/E Ratio has decreased in the years 2020 and 2021 and turns
positive in 2022. This indicates that the company has incurred losses in
those years and increased its earnings position in 2022.
 The EPS of the company is has been negative in 2020 and 2021 and turn
positive in 2022. This positive EPS indicates there are some returns to the
equity shareholders.

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6.2. CONCLUSIONS:
From the above analysis, we can conclude that the company has
improved its financial situation compared to the last few years. Bharti
Airtel Company has seen negative returns due to the impact of
competitors and the impact of the pandemic, but accelerated growth in
FY2022. This suggests that the company's financial situation is
consolidating an improved society. It can also be said that Bharti Airtel
may expand and earn more profits. So it is better to invest in this
company for profit and capture future earnings growth.

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REFERENCES:

 https://www.airtel.in/airtel-annual-report-2021-22/

 https://www.ibef.org/industry/indian-telecommunications-industry-
analysis-presentation#:~:text=Gross%20revenue%20of%20the
%20telecom,to%20100%25%20from%2074%25

 https://www.screener.in/company/BHARTIARTL/consolidated/

 https://en.m.wikipedia.org/wiki/Bharti_Airtel

 Referred book called “Securities Analysis and Portfolio Management” by

M. Ranganatham and R. Madhumathi.

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