Case study on Bharti Airtel


Bharti Airtel:

  • Bharti Airtel is an Indian company, which belongs to the Telecommunication industry.
  • Gopal Vittal is MD & CEO of Bharti Airtel.
  • Sunil Bharti Mittal is Chairman of Bharti Airtel.
  • Bharti Airtel listed on the stock exchange on 15 Feb 2002 with a face value of Rs. 5.
  • As of 10 June 2020, the Bharti Airtel share price was 567.25.
  • Bharti Airtel was established on 7 July 1995.
  • The market cap of Bharti Airtel is 3, 09,330.10 crore as of 10 June 2020.
Case study on Bharti Airtel


History of Bharti Airtel:

In 1983, Sunil Bharti Mittal founded the Bharti group. In 1986, Sunil Mittal corporated its own company Bharti Telecom limited. In 1990s, Bharti Telecom Limited started making cordless phones, fax machines, and other telecom gear.

Sunil Mittal’s Bharti Telecom Limited started assembling push-button phones in India, in 1992, and named it as ‘Mitbrau’. Mittal won one of the four mobile phone network licences auctioned in India in 1992. Sunil Mittal is the first Indian entrepreneurs, who identified major growth in telecom sector as abusiness.

Sunil Mittal’s plans got approved in 1994 and he launced BTL’s first services at Delhi in 1995. On this year BCL offer cellular services under the brand name ‘AirTel.’. In 1997-98, Bharti became the first telecom company, which crossed 2 million mobile subscribers mark.

Bharti Enterprises picked up control of JT Holdings, and extended cellular operations to Karnataka and Andhra Pradesh in 1999. Bharti acquired control of Skycell Communications, in Chennai In 2000. Bharti also acquired control of Spice Cell in Calcutta, West Bengal In 2001.
Case study on Bharti Airtel


On 15 Feb 2002, Bharti Enterprise publicly listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Bharti rebrand its cellular phones operation under the one brand name, called Airtel in 2003. Bharti Enterprise acquired control of Hexacom and entered Rajasthan in 2004. Bharti expand its network to Andaman and Nicobar in 2005.

In 2008, Bharti was offering US $45 billion to MTN for 100% stake in MTN. In May 2009, MTN group agreed to discuss on the deal and potential transaction exclusively by 31 July 2009. Bharti launched its first international mobile network in Sri Lanka in 2009.

Airtel logo was rebranded to ‘airtel’ in 2010. Bharti Airtel acquired the African operations of the Zain Telecom at Kuwait in 2010.  Bharti Airtel launched a mobile operation in Rwanda in 2012.

Service and Network:

1. Service:

In India, Bharti Airtel offers products and services both for the end consumer as well as for businesses.
Business to Customer (B2C)
Business to Business (B2B)
mobile commerce
national & international long distance services to large enterprises and carriers and tower infrastructure services
2G, 3G and 4G wireless services

fixed line services

high speed DSL broadband

IPTV

Digital TV


2. Network:

Bharti Airtel Limited is an Indian global telecommunications services company based in New Delhi, India. Bharti Airtel operates in 18 countries across South Asia and Africa, and also in the Channel Islands.
Airtel is the third largest mobile network operator in India and the second largest mobile network operator in the world with over 411.42 million subscribers.
    Bharti Airtel operates in the following country.

Bangladesh
Channel Islands
Chad
Democratic Republic of the Congo
Gabon
Ghana
India
Kenya
Madagascar
Malawi
Niger
Nigeria
Republic of the Congo
Rwanda
Seychelles
Sri Lanka
Tanzania
Uganda
Zambia



Subsidiary of Bharti Airtel:

    
Airtel India
Airtel Payments Bank Limited
Airtel digital TV
Airtel Sri Lanka
Airtel Bangladesh
Airtel Africa
Airtel-Vodafone
Wynk
Robi

Dividend and Bonus share:

1. Dividend:

     Last 10 years dividend records are given in below table.

Announcement Date
Effective Date
Dividend (%)
25-10-2018
05-11-2018
50.00
24-04-2018
02-08-2018
50.00
18-01-2018
30-01-2018
56.80
12-05-2017
13-07-2017
20.00
27-04-2016
11-08-2016
27.20
28-04-2015
13-08-2015
44.40
13-08-2014
21-08-2014
32.60
29-04-2014
21-08-2014
36.00
02-05-2013
23-05-2013
20.00
02-05-2012
16-08-2012
20.00
05-05-2011
17-08-2011
20.00
28-04-2010
18-08-2010
20.00
29-04-2009
24-07-2009
20.00

2. Bonus Share:

Company has not given any bonus share.

Profit/Loss:

    In this table last 5 years net profit/loss given.

Financial Year
Profit/Loss  (crore)
March 2019
1687.50
March 2018
1122.60
March 2017
3196.50
March 2016
5826.40
March 2015
5053.10

Statistics:

  Statistics of Bharti Aritel given in below table.

No.
Terms
Value
1
Share price(Rs.)
567.25
2
Market Cap
3,09,330.10 cr
3
Dividend (%)
40
4
P/E ratio
-
5
Book value(Rs.)
185.92
6
P/B ratio
-
7
Face value(Rs.)
5
8
EPS(TTM)
-

Thank You.
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