Airtel

Presented By:- Mehak gupta{14WX1E0019}

ANNUAL REPORT ANALYSIS ON

AIRTEL

EXTERNAL SUPPORTPRINCIPLE ASST. PROFESSORDR.P UMA MS. ASIYA SULTANA

HISTORY OF BHARTI AIRTEL

Bharti Airtel formerly known as Bharti Tele-Ventures LTD (BTVL).

Bharti Airtel is the largest cellular service provider in India ,with more than 261 million subscribers across 20 countries as of August 2012. Bharti Airtel was Founded in July 07, 1995 by Sunil Bharti Mittal.

Key people Sunil Mittal ( Chairman ) & ( MD ) SANJAY KAPOOR ( CEO ) Delhi

HIGHLIGHTS

Bharti Airtel and MERCEDES AMG PETRONAS announce Race Partnership for 2012 Formula One airtel Indian Grand Prix

Bharti Airtel launches Cloud Enablement Platform powered by HP .

Bharti Airtel bags Adam Smith Award 2012 for Highly Commended “Best in Class Benchmarking”

'Airtel Rising Stars' to bring alive young India's soccer dreams

Bharti airtel brings the 4G revolution to Bengaluru

SERVICES

1. Mobile- Prepaid - Postpaid (2G,3G,4G).

2. Home Phones – Fixed Line - Fixed Wireless Phones

3. Broadband &Internet

4. Blackberry (2G,3G,4G).

5. Calling Cards

6. Wireless Internet – Data Card - USB Modem

7. Airtel Digital Tv (DTH).

SERVICE TO VARIOUS COUNTRY MARKET

Currently it provides it services to Nigeria, Burkina Faso, Chad, Congo Brazzaville, Democratic Republic of Congo etc.

Recently Airtel started its services to South Africa and Cameroon

REVENUE

Airtelnet income for the April-June quarter was 7.62 billion rupees ($141 million), down from 12.2 billion rupees ($272 million) a year earlier.

Revenue for the quarter was 193.5 billion rupees ($3.6 billion), up 14 percent in rupee terms from 169.7 billion rupees a year ago.

OBJECTIVES

 Enriching lives means putting the customer at the heart of everything we do

We will meet their needs based on our deep understanding of their ambitions, wherever they are

By having this focus we will enrich our own lives and those of our other key stakeholders

ACHIEVEMENTS

First to launch Cellular service on November 1995.

First operator to revolutionaries the concept of retailing with the inauguration of AirTel Connect (exclusive showrooms) in 1995.

First to introduce push button phone in India. It is also the first company to export its products

to the USA.

ORGANIZATIONAL STRUCTURE OF BHARTI AIRTEL

Gopal Vittal Bharti Airtel, CEO sunil mittal chairman of bharti

Board of directors

Year 2014 2013 2012

Gross profit 73949.2 71911.8 63885.4

Net sales 49918.5 45350.9 41603.8

Gross profit ratio 148.13 158.56 153.55

ANALYSIS OF PROFITABILITY RATIOS•Gross profit ratio Gross profitGross profit ratio = ---------------------- X 100 Net Sales

 Year 2014 2013 2012

operating profit 16298.8 13470.7 13643Sales 49918.5 45350.9 41603.8

operating ratio 32.65 29.7 32.79       

INTERPRETATION:The gross profit ratio for last 3 years is almost steady around 145.46(average). However the sales is increasing and the gross profit is also increasing. This increase in grossprofit is attributed to increase in sales

2.Operating profit ratio Operating profitOperating profit ratio = ---------------------- X 100 Sales

 Year 2014 2013 2012

net profit 39878.2 43182.6 40440

sales 49918.5 45350.9 41603.8

netprofit ratio 79.88 95.21 97.2

INTERPRETATION:The operating profit ratio has increased significantly. This increase in operating profit is attributed to increase in sales. In 2012& 2014 the operating ratio is same, where as in 2012 the operating ratio is high 32.79

3.Net profit ratio Net profitNet profit ratio = ------------- X 100 Sales

INTERPRETATION:Net profit ratio is fluctuating for last 3 years, whereas the sales increasing continuously. The decrease in net profit in 2014 attributed to decrease in net profit ratio in 2014(79.88)

 Year 2014 2013 2012net profit 39878.20 43182.60 40440total assets 75250.70 67126.00 63559

return oninvestment ratio 52.99 64.33 63.62

4.Return on investment Net profit Return on investment = -------------- X 100 Total assetsTable showing return on investment ratio of BHARTI AIRTEL for the three consecutive years 2014-2012

INTERPRETATION:This ratio indicates the profitable use of available assets. The assets increased in the past three years as compared to 2012. Therefore the return on investment ratio increasing in a 2012. ROI is decreasing in 2014 due to decrease in net profit.

 Year 2014 2013 2012Profit after tax 6600.20 5096.30 5730.00Networth 66728.00 54146.20 49429.50

Return on Networth ratio 0.098 0.094 0.11

5.Return on Networth Profit after tax Return on net worth= ------------------------- Net worthTable showing return on net worth of BHARTI AIRTEL for the four years 2012-2014

 Year 2014 2013 2012Profit after tax 6600.20 5096.30 5730.00Preference dividend 0 0 0No of equity share 39,974.00 37,975.30 37,975.30

Earnings per share 16.51 13.42 15.08

INTERPRETATION:The return on net worth ratio is fluctuating in last 3 years. Profit after tax is increasing and networthis also increasing in 3 years (2012-2014). This increasing in PAT and net worth in 2014 attributed to increase in RON ratio in 2014.

6.EARNING PER SHARE Profit after tax - preference dividend Earning per share = ---------------------------------------------- X 100 No of equity sharesTable showing earning per share for of HERO for the four years 2011-2014

INTERPRETATION:The earning per share has increased in 2014. Where as in 2013-12 has slight changes and there is normal earning per share . The increase in EPS ratio in 2014 is attributed due to increase in PAT and increase in no of equity shares in 2014

 Year 2014 2013 2012Net worth 66728 54146.20 49429.60

Total assets 75250.70 67126.00 63559

Proprietary ratio 88.67 80.66 77.76

7.Proprietory ratio net worthProprietary ratio= ---------------------- X 100 Total assetsTable showing for of BHARTI AIRTEL for the four years 2012-2014

 Year 2014 2013 2012Net sales 49918.50 45350.90 41603.80total assets 75250.70 67126.50 63559.00assets turnover ratio 0.66 0.67 0.65

INTERPRETATION: The proprietory ratio has increased significantly.This increase in proprietary profit is attributed to increase in shareholder fund. In 2014 the total tangible assets are less where compare to the 2013 & 2012. 8.Assets turnover ratio Net salesAsset turnover ratio = ----------------------- Total assetsTable showing assets turnover ratio of BHARTI AIRTEL for the three consecutive years 2014-2012

YEAR 2014 2013 2012

Currents assets-395.60

-5286.50 76313.90

Current liabilities21798.60

20061.70 16067.20

current ratio -0.018 -0.26 4.7

INTERPRETATION: Turnover ratios help in identifying how the available assets are managed to yield better results. The asset turnover ratio is flucutating for past 3years. Whereas net sales and total assests are increasing significantly for past 3 years

9. Liquidity ratio Current assetCurrent ratio = --------------------- x 100 Current liabilityTable showing current ratio of BHARTI AIRTEL for the three consecutive years 2014-2012

INTERPRETATION: The ideal ratio for current asset and current liability is 2:1. However this need not be blindly applied in all cases. If a company has more liquid assets there is no threat of temporary insolvency. The current ratio for 2014 is high then compared to 2013 & 2012 due to increase in current assests in 2014.

RESEARCH AND DEVELOPMENT

Innovation Design capability Design Structure Financial back up for R&D Training

The audit score and findings would be tabulated by the audit team. Key findings of the audit and summary report would be discussed with the partner's management team. The partners shall submit a time bound action plan for areas of improvement and report completion of the improvement activities. bharti airtel could decide for a follow-up audit to check compliance level of the actions as per its discretion.

CORPORATE SOCIAL RESPONSIBILITY OF BHARTI AIRTEL Bharti Foundation, a separate vehicle established in 2000

to lead the CSR agenda of Bharti Group of Companies. Bharti Airtel’s response to Tsunami Disaster,

Donated Rs. 1 Crore to the Prime Minister’s Relief Fund. Bharti Airtel during Mumbai Floods: Bharti Airtel

employees climbed up the towers to restore the networks so that our customers could conveniently reach its employees.

Bharti Airtel’s response to Kashmir earthquake: Bharti Airtel’s ‘Rapid Response Team’ responded to the Kashmir earthquake by bringing more than 2000 food packets and water bottles to the affected area.

CONCLUSION

After analyzing the findings of the research, I can conclude that Airtel lagged behind its competitors as far as customer service and availability is concerned. The maximum no. of people who use the mobile is in the age group of 20 to 28. Cash cards are the most popular type of mobile connections, as they are consumer friendly and recharging the connection is not a problem. Maximum no. of people spends RS 500 on their connections. As Airtel is the only company having the maximum no of mobile connections so it must seriously look into the loop holes of the existing customer service department. As we know that now Airtel has already launched its product with logo “’ Aisi azaadi aur kahan”’ has already became popular in market. So we can say that in spite of so many competitors in the market Airtel is having a good position just because every time, it tries its best to understand the need of its important customers. From the comparison and deep analysis of every aspect of business of both the companies we can conclude that bharti Airtel has to more work in every field of communication business. It is the time not only to survive but to sustain in the market for a long time. For this Airtel has to work on its all marketing strategies, marketing, promotion, brand image.etc. Airtel has to take Vodafone. Very seriously and update its own strategies from time to time and when the need arises. With aggressive marketing strategies Airtel has to target rural India as 70% of population of India lives in these areas. The other segment may be costumers of all age groups.

THANK YOU!