Bharti Airtel Case Study: Services, Financials, Shareholding Pattern, and SWOT Analysis

Bharti Airtel is one of India’s top multinational telecommunication companies, with more than 352 million users nationwide. This blog will provide an overview of Bharti Airtel’s business segments, performance segments, services, and other offerings. Let’s take a look at the company’s profile.

Bharti Airtel Overview

Bharti Airtel, commonly known as Airtel, was founded by Sunil Mittal in 1995. It currently serves users from 20 countries. The telecom giant provides 2G, 3G, 4G, and 5G networks, fixed-line broadband connections, and voice services based on the country of operation. 

Let’s have a look at the company profile:

Company Name	Public
Industry	Telecommunication
Founder	Sunil Mittal
Year of Incorporation	1995

Let’s move towards the essential market data related to the Bharti Airtel:

Market Cap	₹ 7,04,934 Cr.
Current Price	₹ 1,225
52 Week High / Low	₹ 1,230 / 738
TTM P/E	83.92
Book Value	₹ 135
Dividend Yield	0.33 %
ROCE	16.21 %
ROE	9.19 %
Face Value	₹ 5.00

Services Offered

Bharti Airtel provides products and services for the end consumers and businesses. The company offers 2G, 3G, 4G, and 5G wireless services, mobile commerce, fixed line services, high-speed DSL broadband, IPTV, and Digital TV. 

• B2C – Services:

Here are some B2C services that the company provides to the consumers:

1. Telemedia Services
2. Digital TV Services
3. Mobile Services

• B2B – Services:

The following are a few B2B services that the company offers to businesses :

1. Digital Media services
2. Data center-based services
3. Data and Application Based
4. Cloud-based services
5. Network Services
6. Voice Services

Competitors

The major competitors of the company are:

• Jio
• BSNL
• MTNL
• Vodafone Idea (VI)

Read Also: Vodafone Idea: Business Model And SWOT Analysis

Bharti Airtel Financial Highlights

Income Statement

Particulars	Mar-23	Mar-22	Mar-21	Mar-20
Operating Revenue	1,39,144.80	1,16,546.90	1,00,615.80	84,676.50
Total Expenditure	67,871.30	59,013.00	55,244.10	50,423.10
EBITDA	71,273.50	57,533.90	45,371.70	34,253.40
EBIT	34,841.70	24,443.20	15,967.30	7,159.00
Profit before Tax	16,560.70	12,483.10	-14,488.20	-46,130.40
Consolidated Profit	8,345.90	4,254.90	-15,083.50	-32,183.20

The Income statement highlights indicate strong development over the years in both top line and bottom-line figures. These indicate efficient management of resources. 

Cash Flow Statement

Particulars	Mar-23	Mar-22	Mar-21	Mar-20
Cash From Operating Activities	65,324.60	55,016.60	48,205.00	18,128.70
Cash Flow from Investing Activities	-39,080.20	-41,869.60	-26,888.40	-30,491.90
Cash from Financing Activities	-24,469.50	-15,203.20	-24,910.30	19,144.40
Net Cash Inflow / Outflow	1,774.90	-2,056.20	-3,593.70	6,781.20

The Cash Flow Statement indicates positive and consistent growth for Operating activities, but the same cannot be said for investing and financing activities, which have witnessed major turbulence over the last four years. 

Profitability Ratios

Particulars	Mar-23	Mar-22	Mar-21	Mar-20
ROCE (%)	16.21	14.99	0.31	-16.57
ROE (%)	17.08	13.25	-34.46	-45.30
ROA (%)	3.19	2.48	-7.10	-11.21
EBIT Margin (%)	25.04	20.97	15.87	8.45
Net Margin (%)	8.77	7.09	-23.13	-38.99

The chart indicates that over the last 4 years, the company has shown massive growth and has returned double-digit growth across multiple metrics. 

Growth Ratios

Particulars	Mar-23	Mar-22	Mar-21	Mar-20
Revenue Growth (%)	9.39	15.83	18.82	4.82
EBIT Growth (%)	42.54	53.08	123.04	155.05
Net Profit Growth (%)	47.95	135.46	30.33	-2,092.18
EPS Growth (%)	93.27	128.25	53.44	-6,372.69
Book Value Growth (%)	16.45	12.89	-23.63	8.03

After 2021, the company’s growth ratios indicate a steady increase in topline figures and net profit figures. 2020 was a major year for Bharti Airtel as they saw a major decline in net profit due to unprecedented competition from Jio. 

Stock Returns

Particulars	2023	2022	2021	2020
Particulars	2023	2022	2021	2020
Bharti Airtel	28.05	17.89	35.29	12.44
S&P BSE Sensex	18.74	4.44	21.99	15.75
S&P BSE Telecom	30.78	-4.48	42.98	13.64

The stock movement indicates consistent returns and has even beaten the indices in some years. 

Shareholding Pattern

Shareholder Type	Dec-23	Sep-23	Jun-23	Mar-23	Dec-22
Indian Promoters	39.57	38.35	38.50	38.54	38.61
Foreign Promoters	15.00	16.40	16.47	16.48	16.51
DIIs	19.61	19.81	19.66	19.91	19.13
FIIs	22.69	21.87	21.48	20.97	21.70
Others	3.13	3.57	3.89	4.10	4.05

The graph shows that the shareholding pattern has remained mainly consistent throughout the years with slight changes.

Read Also: Ola Electric Case Study: Business Model, Financials, and SWOT Analysis

Bharti Airtel SWOT Analysis

Strengths 

1. Advertisements: Airtel has brand visibility in social media and television ads to attract audiences.
2. Customer support: Airtel provides spectacular customer services to its audiences or users. The company also has a solid customer base in countries like Sri Lanka, Bangladesh, Africa, and many more.
3. Marketing: Airtel invests a large amount of money to run its unique marketing campaigns for the public to grab their attention. The company did several campaigns that created a significant impact on its consumers. 
4. Quality network: The company relies heavily on its quality network that provides high internet speed, a top priority for consumers today. 
5. Rural market penetration: Airtel is entering rural market sections with a solid customer base. The company has achieved this through strategic investment in rural network infrastructure, making it one of the leading players in the segment.

Weaknesses

1. Price Sensitivity: The company is price-sensitive in the market. They have been through a massive problem in the past that hindered the company’s growth. 
2. Oligopoly market: Airtel is in an oligopolistic market, and the industry is home to aggressive pricing strategies, frequent price wars, and predatory practices that have resulted in lower earnings for all players.
3. Third-party vendors: For several aspects of its operations, the company mainly depends on several partners, from network infrastructure to marketing and distribution. Inadequate supply chain management may result in quality issues, delays, and other concerns.

Opportunities

1. 5G technology: With the exponential rise in the 5G network, the fast internet speed will be a game changer in the telecom business. According to a report by Nasscom and Arthur D Little analysis, 5G network technology is estimated to contribute around 2% of India’s GDP by 2030, equivalent to $180 billion, and Airtel’s early adoption and investment in 5G technology will position it as a market leader in the future.
2. Collaborations: Airtel can collaborate with more smartphone companies to provide its services. It has helped in the rise in network penetration.

Threats

1. Competitions: Airtel is facing problems in the market because of its competitors. Jio is taking over the market because of price, network, etc. The competitors have no option but to make their prices more budget-friendly, which impacts Airtel’s market position. 
2. Fast-changing technology: It is disadvantageous for Airtel since it can quickly turn its current offers obsolete and make competing harder. It must consistently develop and invest in new technology to keep up with changing users’ wants and stay updated and ahead of the competition.

Read Also: IRCTC Case Study: Business Model, Financials, and SWOT Analysis

Conclusion

Airtel is a brand that has maintained its legacy for more than 25 years. The company understands the market scenario and users’ tastes and preferences. The company has consistently delivered high-speed internet and exceptional network coverage, making it a popular choice for millions of customers. Only time will tell if the company will be able to keep its dominant position in the long run.

Frequently Asked Questions (FAQs)