| Edelweiss Capital puts "BUY" on Bharti |
| Our Markets Bureau / Mumbai May 10, 2006 |
| Edelweiss Capital has reiterated its "accumulate" recommendation on Bharti Airtel. The latest report from Edelweiss Capital states that the company has posted strong results in Q4FY06 despite strong competitive scenario and rising pricing pressure. Revenues surged 47% y-o-y and 13% q-o-q to Rs 3,400 crore led by strong growth in mobility and enterprise services business. EBITDA margin at 37.5% was higher by 50 bps q-o-q though lower than that in Q4FY05. Lower licence fees, lower LC costs and reduced ADC charges not getting completely passed through were key reasons for EBITDA margin expansion. The report sees Bharti maintaining growth in mobility business on the back of accelerated subscriber accretion. ARPU pressure notwithstanding, relatively higher profitability on |
