Bharti Infratel 5 per cent down after Q2 announcement

Bharti Infratel is a provider of tower and related infrastructure sharing services. Bharti Infratel is one of the largest pan India tower infrastructure providers, based on the number of towers providers, owned and operated by Bharti Infratel and Indus, that are represented by Bharti Infratel’s 42 per cent equity interest in Indus. The business of Bharti Infratel and Indus is to acquire, build, own and operate tower and related infrastructure.

Today, Bharti Infratel announced its Second Quarter FY16 results wherein the Revenue increased by 4 per cent to Rs 3038 crore in Q2FY16 against Rs 2930.1 crore in Q2FY15. EBITDA increased by 7 per cent to Rs 1308.4 crore, EBITDA margin expanded by 150 basis points to 43.1 per cent on yearly basis. EBIT rose by 9 per cent to Rs 733.7 crore compared Rs 673.1 crore y-o-y basis.

A strong growth in Other Income of Bharati Infratel, grew by 90 per cent to Rs 215.7 crore in Q2 FY16 against Rs 113.7 crore in Q2FY15. Finance cost reduced by 25 per cent to Rs 574 crore y-o-y. Profit before tax increased by 26 per cent to Rs 892 crore, tax expenses rose by 28 per cent to Rs 312.8 crore on yeraly basis. The Net Profit of Bharti Infratel boosted by 25 per cent to Rs 479.2 crore in second quarter of FY16 compared to Rs 465.2 crore in second quarter of FY15.

ROCE (Return on capital employed) of the period ended September 30, 2015 stands at 21 per cent representing a healthy surge of over 360 basis points over corresponding quarter last year. Net co-locations added during the quarter were 3421 on consolidated basis. The consolidated tower and co-location base stands at 87184 towers and 188636 co-locations respectively. For the quarter Q2FY16, Bharti Infratel and Indus had average sharing factors of 2.08 and 2.21 per tower respectively.

"Mobile Data is going to be key pillar of growth for Indian telecom industry. We are already witnessing clear signs of accelerated 3G & 4G rollouts by operators with multi fold increase in such installations as compared to last year," Akhil Gupta, Chairman, Bharti Infratel said.

The FII holdings of Bharti Infratel Increased by 97 basis points to 25.27 per cent, DII holdings are stable to 0.56 per cent as on quarter ending 30th September 2015. Today, Bharti Infratel is trading at Rs 389, around 5 per cent lower after Q2 result announcement as the revenue and operational performance were below estimates for quarter ending September 2015.