Bharti Infratel: Ringing In Profits In Q4FY13
Suparna / 01 May 2013
Telecom tower & related infrastructure provider company Bharti Infratel posted strong results in the quarter ended March FY13. Due to the increased number of operational telecom towers, its revenue increased by 11% in this period.
Telecom tower & related infrastructure provider company Bharti Infratel (BIL) posted strong results on a standalone basis in the quarter ended March FY13. Due to the increased number of operational telecom towers, its revenue increased by 11% in this period. This grew to Rs 1162.6 crore in Q4FY13 from Rs 1044.16 crore in Q4FY12. Further, the increase in operating towers has led to an increase its expenses too by 11% to Rs 973 crore in Q4FY13. This is mainly due to the huge increase in power & fuel expenses, followed by rent charges and repair & maintenance. Power and fuel expenses rose by 22%, while the latter two by 14% and 15% respectively.
Other Expenses plunged by Rs 13.4 crore to Rs 27.4 crore in the same period and the Other Income grew by Rs 80.34 crore to Rs 114.8 crore, marking a growth of 233%. Moreover, the Profits Before Interest & Tax (PBIT) jumped by 52% to Rs 304.5 crore in Q4FY13. Profit before tax stood at Rs 307.4 crore by showing 54% growth in this period. The tax expenses hiked by 54% touched Rs 113.5 crore.
Interestingly, the bottomline showed 50% growth to Rs 194 crore in Q4FY13 from Rs 129 crore in the last year corresponding quarter. The EBITDA margin grew by 46 basis points to 16.31% and the net margin went up by 449 basis points to 16.67% in this period.
BIL recently came out with a successful IPO and listed its equity shares on the Indian bourses on December 28, 2012, raising an amount of Rs 4172.8 crore. Till date, the company has utilised Rs 1007.1 crore for operational expenses and the remaining amount of Rs 3165.7 crore has been invested in mutual funds. During Q4FY13, BIL has also issued 1,00,212 equity shares of face value Rs 10 at a share price of Rs 109.67 under the employee stocks option scheme.
The share price of BIL is currently trading at trailing 12-month PE of 33.29x of its EPS of Rs 5.35. Considering the company's strong financial results and the prospect of many new telecom towers getting operational in the coming time, healthy growth would continue in the future too. Investors with a healthy risk appetite can surely look to invest in this counter from a long-term perspective.
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