Financial Year

Mining AgriGross Agri-culture and Manufactu culture & Domestic & Allied Agriculture - Industry - % Quarrying Services - % ring - % Allied Product - % Services - % % Growth Growth Growth -% Growth Services Growth Rate Growth Rate (YoY) Rate (YoY) Growth Rate (YoY) Rate (YoY) Share to (YoY) Rate (YoY) Rate Total GDP (YoY)

2008-09 2009-10 2010-11 2011-12 2012-13

6.72 8.59 9.32 6.21 4.96

0.09 0.81 7.94 3.65 3.79

-0.27 0.41 8.81 3.90 3.10

4.44 9.16 9.16 3.49 3.12

2.14 5.89 4.92 -0.63 0.43

4.33 11.30 9.73 2.69 1.89

9.98 10.50 9.75 8.20 6.59

15.77% 14.64% 14.45% 14.10% 13.68%

India Has Highest Share of Services in GDP at 6.59%

Source : Central Statistics Office (CSO).

Mining and Manufactu Agriculture Industry Services - Gross Domestic Agriculture & Quarrying - ring - Share - Share to Share to Share to Product (in Rs. Allied Services Share to to Total Total GDP Total GDP Total GDP Cr) (in Rs. Cr.) Total GDP GDP

Agriculture (in Rs. Cr.)

13.36% 12.35% 12.29% 12.02% 11.90%

28.13% 28.27% 28.23% 27.51% 27.03%

2.36% 2.30% 2.21% 2.06% 1.98%

15.78% 16.17% 16.23% 15.70% 15.24%

56.11% 57.09% 57.32% 58.39% 59.29%

4,158,676 4,516,071 4,937,006 5,243,582 5,503,476

655,689 660,987 713,477 739,495 752,746

555,442 557,715 606,848 630,540 654,744

Mining and Industry (in Rs. Manufacturing Services (in Rs. Quarrying Cr.) (in Rs. Cr.) Cr.) (in Rs. Cr.)

1,169,736 1,276,919 1,393,879 1,442,498 1,487,533

98,055 103,830 108,938 108,249 108,713

656,302 730,435 801,476 823,023 838,541

2,333,251 2,578,165 2,829,650 3,061,589 3,263,196

Share and Growth of Indias Services Sector

2008-09 2009-10 2010-11 2011-12 2012-13
Trade Hotels & restaurants Railways Transport by other means Storage Communication Banking & insurance Real estate & business services Public administration & defence Other services Construction 15.3 1.5 0.9 5.5 0.1 1.4 5.6 10.3 5.8 7.5 8.5 15.1 1.4 0.9 5.3 0.1 1.4 5.4 10.4 6.6 7.8 8.2 15.7 1.5 0.8 5.3 0.1 1.1 5.6 10.4 6.1 7.9 8.2 16.6 1.5 0.7 5.4 0.1 0.9 5.7 10.8 6.1 7.9 8.2 16.7 1.5 0.6 5.4 0.1 0.9 5.9 11.2 6.3 8 8.2

Total Services Growth Rate

Total Services (incl. Construction) Growth Rate

53.9 10
62.4 9.4

54.4 10.5
62.6 10

54.5 9.8
62.7 9.8

55.7 8.2
63.9 7.9

56.6 6.6
64.8 6.5

Total GDP

6.72

8.59

9.32

6.21

4.96

Source : Central Statistics Office (CSO).

Sector
Indias services sector has emerged as a prominent sector in terms of its contribution to national and states incomes, trade flows, FDI inflows, and employment.

ution to

Performance of Services Firms Annual Growth ( per cent change over previous year)
Sales
Transport logistics Shipping Aviation Retail trading Health services Hotel Telecom Software Construction Note: * Forecast 2011-12 11 9.3 10.6 -10.3 16.6 9.2 8.9 21.3 18.6 2012-13 1.8 12.9 -0.2 10.6 21.1 9.5 9.5 19.3 12.1 2013-2014* 2011-12 11.9 5.8 4.2 -78.5 8 12.3 24.9 19.5 -22 11 -77.5 11.8 -71 10.7 16.2 17.2 -2.6

PAT
2012-13 -2.5 63.7 2013-2014* 2011-12 16.3 13.4 84 23 21 -59.4 -2.5 24.7 18.8 -11.7 16.4 56.2 13 5.2 26 19.3 21.6

Expenditure

169.6 52.4 -76.2 39.9 19.6 0.4

Source: CMIE Industry Analysis

year)
Expenditure
2012-13 3.1 9.5 -4.2 7.8 20 12.9 12.6 18.5 13.6 2013-2014* 10.8 0 7.5 12.3 17.8 10.9 11.4 11.8 16.4

Analysis of the sector-wise performance of services activities based on firm-level data show that the performance of sectors such as transport logistics, aviation and constructio in the year 2012-13 is subdued in comparison to with the previous year. High negative PA in hotel sector continued. The health services and telecom sectors are projected to have rebounded in the year 2012-13. Overall the year 2013-14 is projected to be better for mo of the sectors, except retail trading, which is projected to have negative growth in profitability. This negative growth is contributed by two factorsone is the base effect with high profit after tax (PAT) growth in the year 2012-13; and the other is an expected shrinking of margins in 2013-14 due to increase in operating costs and price cuts driven b high Competition

ties based on firm-level data ogistics, aviation and construction previous year. High negative PAT m sectors are projected to have is projected to be better for most have negative growth in actorsone is the base effect 3; and the other is an expected ing costs and price cuts driven by

India Telcome Market Share in July 2013

Player Bharti Airtel Vodafone Reliance Idea BSNL+MTNL Tata Aircel Uninor Other Total Total Subscribers
188806793 154910488 134111811 117620254 104163579 77814843 65158527 44496714 26403103

VLR %
92.80% 90.75% 76.43% 97.54% 54.16% 59.24% 60.09% 51.07% 40.22%

Active Subscribers Market Share

175204921 140581010 102501881 114721067 56413598 46098220 39153184 22723669 10619029 24.75% 19.86% 14.48% 16.20% 7.97% 6.51% 5.53% 3.21% 1.50%

913486112

77.51%

708016579

Source : Telecom Regulatory Authority of India (TRAI) Bharti Airtel maintains its leadership position with 24.75%. Idea has largest proportion of active mobile users at 97.54% followed by Bharti Airtel (92.80%) and Vodafone (90.75%). State-owned BSNL+MTNL with only 54.16% of active mobile subscriber base is certainly struggling in highly competitive and dynamic market environment raising lot of concerns about their future. While Tata (59.24%), Aircel (60.09%) and Uninor (51.07%) are way behind leading pack in terms of active user proportion raising doubts about long term sustainability of their business model. Reliance, Vodafone and Idea led in terms of net subscriber additions during July 2013 while Tata and BSNL were worst performers.

3
Rank 1 2 3 4 5 6 7 8

bile users at 97.54% % of active mobile lot of concerns about n terms of active user and Idea led in terms

Balance Sheet Of Bharti Airtel

(Millions) (Millions)

Particulars Equity and Liabilities

Shareholders Funds Share capital Reserves and surplus Non-current Liabilities Long-term borrowings Deferred tax liabilities (Net) Other long term liabilities Long term provisions Current Liabilities Short-term borrowings Trade payables Other current liabilities Short term provisions Total

FY2013

FY2012

18,988 522,474 98,408 11,503 31,708 1,494 31,390 51,372 106,034 5,461

18,988 475,308 82,338 8,367 25,184 1,405 58,956 45,121 82,000 5,570

194,257 878,832 803,237

191,647

Total

Assets
Non-current Assets Fixed Assets Tangible assets Intangible assets Capital work-in-progress Intangible assets under development Non current investments Long-term loans and advances Other non-current assets Current Assets Current investments Inventories Trade receivables Cash and bank balances Short-term loans and advances Other current assets Total
264,362 167,464 10,308 0 271,191 89,358 14,111 10,800 21 22,468 3,627 14,133 10,989 263,782 140,626 9,230

35,435
118,041 84,817 10,924 5,337 321 21,345 4,812 98,047 10,520

62,038 878,832 803,237

140,382

Total

Bharti Airtel Profit and Loss

(Millions) (Millions)

Particulars

FY2013

FY2012

Income Revenue from operations 453,509 416,038 Other income 14,631 6,247 Total Income 468,140 422,285 Expenses Access charges 74,212 58,086 License fee and spectrum charges 48,815 46,942 Cost of goods sold 19 183 Employee benefits expenses 15,113 13,915 Power and fuel 35,699 29,727 Rent 52,225 47,714 Other expenses 92,424 82,702 Total Expenses 318,507 279,269 Profit before Finance Costs, Depreciation, 149,633 Amortisation, Charity 143,016 and Donation and Taxation Finance costs 16,523 13,962 Depreciation and amortisation expense 68,267 59,160 Charity and donation 295 332 Profit before Tax 64,548 69,562 MAT credit (3155) (5227) Tax Expense Current tax 13,604 14,398 Deferred tax 3,136 3,091 Profit for the year 50,963 57,300

EPS

13.41979

15.088

Earning per share (EPS) has also decline from Rs. 15.09 in 2012 to Rs. 13.42 in 2013, which indicates that overall profitability of the company is declining. This ratio also indicates that market price of Bharti Airtel Ltd shares is likel to be decrease in the upcoming year.

hich indicates that overall Bharti Airtel Ltd shares is likely

LIQUIDITY RATIOS
FY2013
Current Ratio
CA/CL 0.32

FY2012

0.73 The current ratio 0.73 in 2012 d 2013, it decreases to .32, althou

Acid Test Ratio

Liquid Assets/Current Liabilities 0.32

0.73 The standard norms of acid test show a satisfactory liquidity pos

Cash Ratio
(Cash and Bank Balances+Marketable securities)/Current 0.09 Liabilities

0.54 The cash ratio shows a satisfact satisfactory. Becouse standard n

LONG-TERM SOLVENCY OR LEVERAGE RATIOS

Debt Equity Ratio
Total Liabilities/Shareholders' Equity 0.24

Proprietory Ratio
(Shareholders' Equity/Total Assets)100 61.61

Debt equity ratio indicates that 0.22 owners is only 0.22 in 2012. Thi position of the company is very The proprietory ratio in 2012 an 61.54 shows the better long-term solv It indicates that the proportion 30.93 in the year 2013.

Total Debt To Total Assets Ratio

((total Short-term debt+Total Long-term Debt)/Total 30.44 Assets)100

ACTIVITY RATIOS
Stock Turnover Ratio
Cost of Good Sold/Average Stock 0.11

Stock turnover ratio has droppe 0.57 Unsaleable items have been pur

Debtors Turnover Ratio

Sales/Average Debtors 21.37

Debtors turnover ratio has incre 19.78 collection of debts and selection

PROFITABILITY RATIO
Gross Profit Ratio
(Gross Profit/Sales)100 31.96

Gross profit ratio has declined f 33.87 corresponding decrease in cost Operating ratio has increase by 41.26 sales. Net profit ratio has also decline 13.5690351 profitability of the firm.

Operating Ratio
((Cost of Goods Sold +Operating Expenses)/Sales)100 41.76

Net Profit Ratio

(Net Profit after tax/Sales)100 10.88627334

Return on Equity
(Net Profit after tax/Shareholder s Funds)100 9.412110176

Return on equity (ROE) has also 11.5922443 more efficiently.

Return on Assets

5.80%

7.13%

Basic Earning Power

9.26% 10.44%

Debt Coverage Ratios

Intrest Coverage Ratio
EBIT/Intrest Expense 9.056043091 10.2432316

Total Debt to Capital Ratio

Debt/(shareholders' equity+Debt) 0.330703756 0.33452706

Fixed-Charge Coverage Ratio

(EBIT+Fixed Charge)/(Intrest+Fixed Charge) 2.564435564

Management Efficiency Ratios

Inventory Turnover Ratio
Sales/Inventory 22292.38095 1315.5296

Days Sales Outstanding

Accounts Receivable Number of Days/Credit 17.51787927 Sales 18.4494476

Fixed Asset Turnover Ratio

Net Sales/Fixed Assets 1.058819272 0.94034823

Total Assets Turnover

Net Sales/Total Assets 0.53268429 0.52572902

The current ratio 0.73 in 2012 does not show the good liquidity position as it is much below than the standard norms of 2:1. In the year 2013, it decreases to .32, although this ratio also does not show the good liquidity position. The standard norms of acid test ratio are 1:1. In 2012 it shows a ratio of 0.73:1 and it decreases in 2013 to 0.32:1. This ratio does not show a satisfactory liquidity position. The cash ratio shows a satisfactory result in 2012, but in 2013 cash ratio is decrese. The financial position of the company is not satisfactory. Becouse standard norms should 0.5:1.

Debt equity ratio indicates that the proportion of funds provided by long-term lenders in comparison to the funds provided by the owners is only 0.22 in 2012. This portion has further increases to 0.23 in 2013. It shows that the long-term solvency position of the company is very sound. The proprietory ratio in 2012 and 2013 are 61.54% and 61.61% respectively. Although, in 2013 this goes small increase but this ratio shows the better long-term solvency position. This fact is also supported by total assets to debt ratio.

It indicates that the proportion of assets financed through long-term loans is only 31% in the year 2012 and it has small decreases to 30% in the year 2013.

Stock turnover ratio has dropped from 0.57 times to 0.11 times. It indicates that the company is not rapidly turning the stock into sales. Unsaleable items have been purchased which are included in the stock of the company. Debtors turnover ratio has increased from 19.78 times to 21.37 times. It indicates that the companys policy relating to collection of debts and selection of customers for credit sales is quite satisfactory.

Gross profit ratio has declined from 33.87 % in 2012 to 31.96 % in 2013, which reflects a decrease in sales price of goods sold without corresponding decrease in cost of sales. Operating ratio has increase by 0.20 % in 2013 in respect to 2012. Increasing of operating ratio has resulted in lower margin of profit in sales. Net profit ratio has also decline from 13.57 % to 10.89 % in 2013, which is an indication of decreasing in the overall efficiency and profitability of the firm.

Return on equity (ROE) has also declining from 11.59 % to 9.41 % in 2013, which indicates that shareholders funds are not being utilized more efficiently.

andard norms of 2:1. In the year

3 to 0.32:1. This ratio does not

on of the company is not

o the funds provided by the erm solvency

s small increase but this ratio

and it has small decreases to 30%

pidly turning the stock into sales.

policy relating to

les price of goods sold without

ulted in lower margin of profit in

n the overall efficiency and

lders funds are not being utilized