|
|
Â
ü Media reports suggest that Infosys promoters could be looking to exit the company; continue to Prefer Tier Ii techs ( albeit expect a breather here in the near term)
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ü Inter-ministerial panel looking to lower license fee and SUC charge, Telecom industry is hopeful so are we
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ü Zee Ent  acquires remaining 49% stake in its subsidiary India Webportal Private Limited for Rs2bn, third transaction in digital space in last 3 months
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ü Revenue market share for Q4FY17- Pressure on revenues continued, BHARTI IN and IDEA IN registered market share gains while Vodafone saw contraction on sequential basis
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ü Management interview: Federal bank, Bajaj Electricals
Ø Federal Bank : See FY18 loan growth at 18-20%; NIMs steady at 3.25%
Ø Bajaj Electricals : Our products will be IoT and Artificial Intelligence driven
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Note: Joint Product by Nevil, Jignesh & Setu
============================================================================================================================================================================================
Media reports suggest that Infosys promoters could be looking to exit the company; continue to Prefer Tier Ii techs ( albeit expect a breather here in the near term)
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1.    As per a media report in today’s Time of India, Infosys promoters could be looking to exit the company completely ( refer link http://timesofindia.indiatimes.com/business/india-business/infosys-founders-looking-to-sell-their-stake-in-company/articleshow/59060852.cms) . We note that the promoters hold ~12.7% stake in the company and none of the co- promoters have been on the Company’s Board after handing over the baton to Mr Vishal Sikka in mid CY2014. The promoters had sold <3% stake in the company most recently inDec’2014. In our view , the decision to exit the company could be driven by the differences that have been played out in the open in early 2017. NRN had expressed his displeasure at certain business policies/decisions along with certain Board appointees through an open letter with the rift having played out in media for a number of weeks in Feb’2017. While the newsflow on this has stopped since then, a stake sale by the promoters looks the most logical step since they are no longer involved in the company’s day to day running. NRN has denied any such moves as per the news report however we believe that a complete exit by the Co- promoters and Founders should be the right thing as they are no longer actively involved with the company and have been at differences with the turn that Infosys seems to be taking under an external CEO ( read: more aggressive growth bets in the form of acquisitions, investments in platforms etc)
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2.    This news coming on the back of a similar news item on Wipro promoters exploring a complete/partial exit a couple of days back only strengthens our belief that the structural headwinds that offshore IT Industry faces is most likely to lead to consolidation in the Tier I tech space as growth rates in the legacy business continue to be challenged and the companies need to reorient themselves in the evolving Digital world. We have continued to highlight that we view this transformation similar to what global traditional IT players faced in early 2000’s when offshore outsourcing was gaining ground. Amongst the global vendors, we have seen only IBM , Accenture and Capgemini who have managed the transition better with a wave of consolidation amongst the other players that included HP, EDS, Dell , Perot Systems etc.
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3.    It goes without saying that given the size of the promoter holding( ~13%), this will most likely be a  technical overhang on the stock in the near/medium term.  We currently have an ACCUMULATE rating on Infosys with a TP of Rs 1000. At CMP of Rs 950, stock trades at ~14.6x/13.4x FY18/19E P/E.
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4.    We continue to believe that CY17/FY18 will be a better spending year for offshore IT after a very difficult CY16/FY17. While structural headwinds in the sector are very much here to stay, abatement of cyclical headwinds should reflect in an uplift in operational/financial performance for Tier II techs. We prefer Tier II techs over Tier 1’s as we have been highlighting since early Dec’16. Both Dec’16 quarter and Mar’17 quarter results have given some confidence to our thesis. However given sharp up-moves in the past 3 months , we believe that Tier II techs should also take a breather and we would await better entry points. Our preferred picks are ACCUMULATE rated Mindtree, Hexaware and LTI. Any sharp currency appreciation remains the key risk to our thesis.
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Inter-ministerial panel looking to lower license fee and SUC charge, Telecom industry is hopeful so are we
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In order to take stock of telecom industry’s increasing debt burden due to declining revenues, the inter-ministerial panel was constituted in May 2017. The committee is expected to have representation from the Departments of Economic Affairs, Revenue and Financial Services, besides the Telecom Department.
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As per the media articles, the panel is looking to reduce license fee to 6% vs 8% currently and spectrum usage charge (SUC) to 3% vs 4.8% of adjusted gross revenues (AGR). However, telecom industry has recommended for 5% license fee and 3% SUC in May 2017 to the panel. If we assume reduction of license fee to 5% and SUC to 3% then, savings for Bharti and Idea stand at Rs17bn and Rs10bn, respectively. Our calculations are based on FY17 actual financials. We are hopeful of some reduction in taxation by government while the sector has not seen any such favor from government in the past. Â Â Â
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The inter-ministerial panel - comprising officials from the telecom department and Finance Ministry - will hold a string of meetings with the operators between June 12-16.
Â
Key proposals by telecom companies: The operators have suggested, among other things, reduction of license fee to 1-5% from present 8%, spectrum usage charges to 0-3% from 4.8% and spectrum payment instalments may be raised to 18 years from the present 8.
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Further, TRAI is set to meet telecom operators on 15th June to discuss the financial pain in the sector and seek suggestions on measures that can be taken to ease the situation. On the contentious issue of Interconnection Usage Charges (IUC) open house discussion has been postponed for now, which was scheduled to be held on June 15.
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Key meetings between telcos and regulator/government |
Timeline |
The inter-ministerial panel |
12-16 June |
TRAI meeting with telcos |
15th June |
Telecom Minister with promoters of Telcos |
22-23 June |
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Bharti Airtel (Rs mn) |
FY16 |
FY17 |
|
Idea Cellular (Rs mn) |
FY16 |
FY17 |
Reported India Mobile revenues |
560759 |
565511 |
|
Reported revenue |
353446 |
348728 |
Adjusted gross revenue as reported by TRAI |
466332 |
472090 |
|
Adjusted gross revenue as reported by TRAI |
286955 |
284757 |
License fees |
37307 |
37768 |
|
License fees |
22956 |
22781 |
SUC |
24907 |
21843 |
|
SUC |
14904 |
13549 |
% of reported revenues |
 |
 |
|
% of reported revenue |
 |
 |
License fees |
6.7% |
6.7% |
|
License fees |
6.5% |
6.5% |
SUC |
4.4% |
3.9% |
|
SUC |
4.2% |
3.9% |
% of TRAI revenues |
 |
 |
|
% of TRAI revenue |
 |
 |
License fees |
8.0% |
8.0% |
|
License fees |
8.0% |
8.0% |
SUC |
5.3% |
4.6% |
|
SUC |
5.2% |
4.8% |
Proposed |
|
|
|
Proposed |
|
|
License fees |
|
6.0% |
|
License fees |
|
6.0% |
SUC |
|
3.0% |
|
SUC |
|
3.0% |
Potential savings as calculated on TRAI reported revenues |
 |
|
Potential savings as calculated on TRAI reported revenues |
 |
License fees |
|
9443 |
|
License fees |
|
5696 |
SUC |
 |
7680 |
|
SUC |
 |
5006 |
% of consolidated EBITDA- FY17E |
 |
5% |
|
% of consolidated EBITDA- FY17E |
 |
10% |
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Z IN acquires remaining 49% stake in its subsidiary India Webportal Private Limited for Rs2bn, third transaction in digital space in last 3 months
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Zee Entertainment has made announcement on acquisition of 49% remaining stake in subsidiary India Webportal Private Limited (IWPL) for Rs2bn and 12.50% stake in Tagos Design Innovations Pvt. Ltd for Rs162mn. For sale of Rs647mn in FY17 for IWPL, Zee has valued it at 6.3x. Earlier the company had acquired 80% stake in Margo Networks for Rs750mn. All the three transactions over the last 3 months has been on the digital space with total outlay of Rs2.9bn. The company is working on the digital strategy, which they are expected to unveil during Q3FY18. We have ACCUMULATE rating on the stock with PT of Rs580.
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Companies acquired |
Purchase amount (Rs mn) |
% stake |
Total value of the company (Rs mn) |
Margo Networks |
750 |
80% |
938 |
Webportal Private Limited |
2000 |
49% |
4082 |
Tagos Design Innovations Pvt. Ltd |
162 |
12.5% |
1296 |
Total |
2912 |
|
|
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Acquisition of balance stake in India Webportal Pvt Ltd (IWPL):
Brief background: India Webportal Private Limited (IWPL), a 51% subsidiary  of the Company, incorporated on 31st March’10 is engaged in the business of media content management including digitization, content aggregation, conversion, creation, distribution through webportals, communication facilities and providing digital infrastructure, application, facilities etc. IWPL distributes media contents on digital platform thorough various websites including India.com, Bollywoodlife.com, Cricketcountry.com, Thehealthsite.com, BGR. in, Oncars.in etc. The acquisition along with execution of transaction documents is expected to be concluded within 30 days.
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Shareholding Pattern of IWPL as on date is as mentioned herein:
Name Of Shareholder |
No of Shares (mn) |
% holding |
Zee Entertainment Enterprises Ltd |
127 |
51% |
MMC Investments Holding Company II ltd |
110 |
44% |
Ashok Kurien (related arty) |
12 |
5% |
Total |
249 |
100% |
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Financials of IWPL
Particulars (Rs mn) |
FY15-IGAAP |
FY16-IGAAP |
FY17-IND-AS |
Turnover |
411.6 |
716.9 |
647.2 |
PBT |
-88.6 |
26.3 |
-137.9 |
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Acquisition of 12.50% stake in Tagos Design Innovations Pvt. Ltd. (Tagos)
Tagos Design Innovations Pvt. Ltd., is a Technolow start-up which has developed an in-video discovery platform.
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Particulars (Rs mn) |
FY14 |
FY15 |
FY16 |
Revenue |
0.7 |
0.6 |
1.3 |
Net Loss |
1.0 |
1.9 |
4.6 |
Â
Revenue market share for Q4FY17- Pressure on revenues continued, BHARTI IN and IDEA IN registered market share gains while Vodafone saw contraction on sequential basis
Â
On expected lines, telecom industry registered another quarter of revenue decline led by free offering by Jio. Aggressive tariff reduction to restrict churn to Jio’s free offerings for high ARPU subscribers resulted into accelerated pain on sequential basis. Revenue decline was seen across circles while amongst the large circles highest decline was in Delhi (-23%), Karnataka (-13%), TN (-14%), Mumbai (-15%). All the major circles except Bihar, registered sequential revenue decline for Bharti Airtel while for Idea all circles registered decline. In case of Vodafone, all the circle registered sequential revenue decline. Sequential revenue decline of 12.6% for Vodafone was highest among incumbent operators. Combined market share of incumbent operators (Bharti, Idea and Vodafone) has further, strengthened to 77.7% vs 76.7% in 3Q as challenger operators continue to lose revenues at accelerated pace. Â
As Jio has started to charge officially from 1st April 2017 while free services still continue, this would restrict rebound in industry revenues in near term. We believe as of now industry revenues have bottomed but pricing aggression from Jio is not expected to end anytime soon as race for subscriber market is expected to continue.
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Circle wise revenue trend
Circle |
QoQ |
YoY |
Delhi |
-23% |
-31% |
Mumbai |
-15% |
-28% |
Kolkata |
-15% |
-21% |
Maharashtra |
-8% |
-15% |
Gujarat |
-17% |
-25% |
Andhra Pradesh |
-10% |
-15% |
Karnataka |
-13% |
-18% |
Tamil Nadu & Chennai |
-14% |
-17% |
Kerala |
-10% |
-16% |
Punjab |
-18% |
-16% |
Haryana |
-18% |
-28% |
UP - West |
-10% |
-18% |
UP - East |
-2% |
-11% |
Rajasthan |
-12% |
-16% |
Madhya Pradesh |
-9% |
-21% |
West Bengal |
-8% |
-11% |
HP |
-22% |
-32% |
Bihar |
1% |
-8% |
Orissa |
-4% |
-16% |
Assam |
-11% |
-16% |
North East |
-14% |
-14% |
J&K |
-8% |
-40% |
Total |
-11% |
-18% |
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·        Consolidated adjusted gross revenue for the industry declined 11.5% qoq and 18.4% yoy to Rs309bn. All the telcos have reported revenue decline. Bharti, Vodafone and Idea reported revenue decline of 9.9%, 12.6% and 8% qoq, respectively. Combined market share of incumbent operators stood at 77.7% v/s 76.7% in the last quarter and 74.7% in Q4FY16.
·        RMS of Bharti and Idea expanded for Q4FY17 while contracted for Vodafone. Vodafone RMS at 23.5% contracted 31bps qoq while for Bharti and Idea it expanded 59bps and 78bos sequentially to 33.5% and 20.7%.
Operator-wise performance
·        Bharti Airtel absolute revenue declined but RMS expanded sequentially: AGR declined 9.9% qoq and 13.9% yoy to Rs104bn. It reported revenue decline across all the circles except Kerala, Bihar, J&K, and UP (E). Top 7 circles contributing 63% of the AGR, registered sequential decline of 9.2% and 14.1% on yoy basis. Karnataka, the largest revenue contributing circle registered decline of 10.3% qoq. Four circles that registered sequential growth were Kerala (+11%), Bihar (+1.3%), J&K (+104%) and UP (E) (+1.1%).
Circle-wise growth trend
Bharti |
Q4FY16 |
Q3FY17 |
Q4FY17 |
QoQ |
YoY |
A. P. |
13,203 |
12,939 |
11,744 |
-9.2% |
-11% |
Assam |
2,795 |
2,489 |
2,266 |
-9.0% |
-19% |
Bihar |
10,248 |
9,375 |
9,498 |
1.3% |
-7% |
Tamil Nadu |
11,475 |
11,478 |
9,969 |
-13.1% |
-13% |
Delhi |
9,698 |
9,465 |
7,650 |
-19.2% |
-21% |
Gujarat |
2,841 |
2,919 |
2,148 |
-26.4% |
-24% |
Haryana |
1,093 |
1,092 |
832 |
-23.8% |
-24% |
H. P. |
1,290 |
1,255 |
990 |
-21.1% |
-23% |
J & K |
1,824 |
688 |
1,403 |
103.9% |
-23% |
Karnataka |
15,514 |
13,756 |
12,335 |
-10.3% |
-20% |
Kerala |
1,668 |
1,360 |
1,510 |
11.0% |
-9% |
Kolkata |
2,006 |
2,087 |
1,814 |
-13.1% |
-10% |
M. P. |
4,347 |
4,189 |
3,776 |
-9.9% |
-13% |
Maharashtra |
4,753 |
5,175 |
4,532 |
-12.4% |
-5% |
Mumbai |
5,288 |
4,643 |
3,737 |
-19.5% |
-29% |
Orissa |
3,636 |
3,297 |
3,184 |
-3.4% |
-12% |
Punjab |
3,164 |
4,788 |
3,962 |
-17.2% |
25% |
U. P. (E) |
7,092 |
7,094 |
7,173 |
1.1% |
1% |
U. P. (W) |
3,354 |
2,964 |
2,680 |
-9.6% |
-20% |
West Bengal |
3,998 |
3,907 |
3,630 |
-7.1% |
-9% |
North East |
1,991 |
1,973 |
1,643 |
-16.7% |
-18% |
Rajasthan |
9,045 |
8,026 |
7,146 |
-11.0% |
-21% |
Total |
1,20,325 |
1,14,957 |
1,03,619 |
-9.9% |
-13.9% |
Contribution to AGR |
36% |
35% |
28% |
 |
 |
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Bharti Airtel’ top 5 circles:
Bharti |
Q4FY16 |
Q3FY17 |
Q4FY17 |
QoQ |
YoY |
 |
A. P. |
13,203 |
12,939 |
11,744 |
-9.2% |
-11% |
 |
Bihar |
10,248 |
9,375 |
9,498 |
1.3% |
-7% |
 |
Tamil Nadu |
11,475 |
11,478 |
9,969 |
-13.1% |
-13% |
 |
Delhi |
9,698 |
9,465 |
7,650 |
-19.2% |
-21% |
 |
Karnataka |
15,514 |
13,756 |
12,335 |
-10.3% |
-20% |
 |
U. P. (E) |
7,092 |
7,094 |
7,173 |
1.1% |
1% |
 |
Rajasthan |
9,045 |
8,026 |
7,146 |
-11.0% |
-21% |
 |
Total |
76,276 |
72,133 |
65,514 |
-9.2% |
-14.1% |
 |
Contribution to AGR |
63% |
63% |
63% |
 |
 |
 |
|
|
|
|
|
|
|
|
|
|
|
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·        Idea Cellular market share expanded 78bps qoq while revenue was down 8% qoq: Revenue declined 8.0% qoq and 16.5% yoy to Rs64bn. Revenue market share stood at 20.7% (+78bps qoq and +49bps yoy). Top 7 circles contributing 70% of the AGR, registered sequential decline of 7.7% and 18% on yoy basis. Maharashtra, the largest revenue contributing circle registered decline of 6.1% qoq. Only 2 circles registered qoq growth, Assam (+3.5%) and Bihar (+8.9%).
Circle-wise growth trend
Idea |
Q4FY16 |
Q3FY17 |
Q4FY17 |
QoQ |
YoY |
A. P. |
8,164 |
7,398 |
6,902 |
-6.7% |
-15% |
Assam |
271 |
255 |
264 |
3.5% |
-3% |
Delhi |
2,559 |
2,659 |
1,998 |
-24.8% |
-22% |
Gujarat |
5,516 |
4,891 |
4,302 |
-12.0% |
-22% |
Maharashtra |
12,203 |
11,376 |
10,684 |
-6.1% |
-12% |
Mumbai |
1,848 |
1,510 |
1,328 |
-12.0% |
-28% |
Orissa |
385 |
387 |
364 |
-5.9% |
-6% |
Tamil Nadu |
1,273 |
1,638 |
1,356 |
-17.2% |
7% |
West Bengal |
1,088 |
1,103 |
1,098 |
-0.5% |
1% |
J & K |
291 |
200 |
192 |
-4.0% |
-34% |
Kolkata |
376 |
568 |
540 |
-4.8% |
44% |
North East |
115 |
121 |
108 |
-10.1% |
-5% |
H. P. |
358 |
272 |
219 |
-19.3% |
-39% |
Rajasthan |
2,376 |
2,139 |
1,931 |
-9.7% |
-19% |
U. P. (E) |
3,594 |
3,257 |
3,168 |
-2.7% |
-12% |
Haryana |
2,035 |
1,777 |
1,525 |
-14.2% |
-25% |
Kerala |
9,050 |
8,200 |
6,926 |
-15.5% |
-23% |
U. P. (W) |
5,790 |
5,087 |
4,991 |
-1.9% |
-14% |
M. P. |
9,018 |
7,966 |
7,718 |
-3.1% |
-14% |
Bihar |
2,688 |
2,289 |
2,492 |
8.9% |
-7% |
Punjab |
4,715 |
3,562 |
3,241 |
-9.0% |
-31% |
Karnataka |
2,919 |
2,928 |
2,663 |
-9.1% |
-9% |
Total |
76,631 |
69,580 |
64,011 |
-8.0% |
-16% |
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 Idea Cellular’s top 7 circles:
Idea |
Q4FY16 |
Q3FY17 |
Q4FY17 |
QoQ |
YoY |
A. P. |
8,164 |
7,398 |
6,902 |
-6.7% |
-15% |
Gujarat |
5,516 |
4,891 |
4,302 |
-12.0% |
-22% |
Maharashtra |
12,203 |
11,376 |
10,684 |
-6.1% |
-12% |
Kerala |
9,050 |
8,200 |
6,926 |
-15.5% |
-23% |
U. P. (W) |
5,790 |
5,087 |
4,991 |
-1.9% |
-14% |
M. P. |
9,018 |
7,966 |
7,718 |
-3.1% |
-14% |
Punjab |
4,715 |
3,562 |
3,241 |
-9.0% |
-31% |
Total |
54,456 |
48,480 |
44,765 |
-7.7% |
-18% |
Contribution to AGR |
71% |
70% |
70% |
|
|
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·        Vodafone’s the only incumbent loss market share: AGR declined 12.6% qoq and 15.8% yoy to Rs72.5bn. All the circle registered sequential decline. AGR for top 7 circles declined 12.9% qoq and 18% yoy, contributing 61% of the total revenue. Top 7 circles include - Delhi (-26.5%), Mumbai (-16.1%), Maharashtra (-10.1%), Gujarat (-12.4%), West Bengal (-8.3%), Tamil Nadu (-12.9%), and UP-E (-3.1%).
Circle-wise growth trend
Vodafone |
Q4FY16 |
Q3FY17 |
Q4FY17 |
QoQ |
YoY |
Delhi |
7,508 |
6,717 |
4,937 |
-26.5% |
-34% |
Mumbai |
7,932 |
7,662 |
6,431 |
-16.1% |
-19% |
Kerala |
3,917 |
4,161 |
3,707 |
-10.9% |
-5% |
Maharashtra |
8,927 |
8,078 |
7,263 |
-10.1% |
-19% |
Tamil Nadu |
8,354 |
8,342 |
7,270 |
-12.9% |
-13% |
Kolkata |
3,019 |
2,817 |
2,390 |
-15.2% |
-21% |
A. P. |
2,333 |
2,367 |
2,037 |
-13.9% |
-13% |
Karnataka |
3,116 |
3,883 |
3,320 |
-14.5% |
7% |
Punjab |
2,027 |
1,868 |
1,357 |
-27.3% |
-33% |
U. P. (W) |
3,399 |
3,307 |
3,131 |
-5.3% |
-8% |
West Bengal |
4,943 |
4,913 |
4,506 |
-8.3% |
-9% |
Haryana |
2,069 |
1,912 |
1,556 |
-18.6% |
-25% |
Rajasthan |
3,874 |
4,008 |
3,619 |
-9.7% |
-7% |
U. P. (E) |
7,521 |
6,886 |
6,672 |
-3.1% |
-11% |
Gujarat |
9,148 |
8,387 |
7,350 |
-12.4% |
-20% |
Bihar |
2,762 |
2,534 |
2,462 |
-2.8% |
-11% |
M. P. |
1,330 |
1,216 |
1,019 |
-16.3% |
-23% |
Assam |
1,538 |
1,589 |
1,398 |
-12.0% |
-9% |
North East |
611 |
748 |
622 |
-16.8% |
2% |
J & K |
331 |
364 |
297 |
-18.5% |
-10% |
Orissa |
1,322 |
1,117 |
1,112 |
-0.5% |
-16% |
H. P. |
185 |
169 |
128 |
-24.7% |
-31% |
Total |
86,163 |
83,045 |
72,581 |
-12.6% |
-16% |
Â
Vodafone top 7 circles:
Vodafone |
Q4FY16 |
Q3FY17 |
Q4FY17 |
QoQ |
YoY |
Delhi |
7,508 |
6,717 |
4,937 |
-26.5% |
-34% |
Mumbai |
7,932 |
7,662 |
6,431 |
-16.1% |
-19% |
Maharashtra |
8,927 |
8,078 |
7,263 |
-10.1% |
-19% |
Tamil Nadu |
8,354 |
8,342 |
7,270 |
-12.9% |
-13% |
West Bengal |
4,943 |
4,913 |
4,506 |
-8.3% |
-9% |
U. P. (E) |
7,521 |
6,886 |
6,672 |
-3.1% |
-11% |
Gujarat |
9,148 |
8,387 |
7,350 |
-12.4% |
-20% |
Total |
54,332 |
50,984 |
44,428 |
-12.9% |
-18% |
Contribution to AGR |
63% |
61% |
61% |
 |
 |
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·        Aircel’s adjusted market share stood at 4.4% vs 5.1% in Q3FY17. AGR declined 22.9% qoq and 32% yoy at Rs13.6bn
·        RCOM’s RMS stood at 2.4% vs 2.8% in the last quarter. MTNL reported revenue decline of 25.1% qoq, after registering growth of 15.8% in Q3FY17 and 7.8% qoq in Q2FY17. BSNL’s revenue was down 6% qoq with market share of 6.4% (+37bps qoq).
·        Tata Teleservices’ RMS was down 26bps qoq to 6.1%. Telenor’s RMS was up 9bps qoq to 2.1%.
Revenue market share
 |
Q4Y15 |
Q1Y16 |
Q2Y16 |
Q3Y16 |
Q4Y16 |
Q1Y17 |
Q2Y17 |
Q3Y17 |
Q4Y17 |
Bharti Airtel |
30.6% |
31.4% |
31.5% |
31.8% |
31.8% |
33.1% |
33.5% |
32.9% |
33.5% |
Vodafone |
23.0% |
23.0% |
22.7% |
22.4% |
22.7% |
23.2% |
23.5% |
23.8% |
23.5% |
Idea Cellular |
18.8% |
19.1% |
19.0% |
19.52% |
20.23% |
20.07% |
19.6% |
19.9% |
20.7% |
RCom |
5.4% |
5.1% |
4.5% |
4.2% |
3.6% |
3.5% |
3.0% |
2.8% |
2.4% |
Tata Tele Services |
7.2% |
7.0% |
7.0% |
6.9% |
6.9% |
6.7% |
6.8% |
6.3% |
6.1% |
BSNL |
5.5% |
5.3% |
6.1% |
6.0% |
5.8% |
4.8% |
5.4% |
6.0% |
6.4% |
Aircel |
5.8% |
5.5% |
5.5% |
5.3% |
5.3% |
5.1% |
5.2% |
5.1% |
4.4% |
MTNL |
0.5% |
0.4% |
0.4% |
0.4% |
0.5% |
0.3% |
0.4% |
0.5% |
0.4% |
Loop Mobile |
0.0% |
0.0% |
0.0% |
0.0% |
0.0% |
0.0% |
0.0% |
0.0% |
0.0% |
Sistema |
0.9% |
0.9% |
0.9% |
0.8% |
0.8% |
0.8% |
0.7% |
0.6% |
0.5% |
HFCL Infotel Ltd. |
0.0% |
0.0% |
0.0% |
0.1% |
0.0% |
0.1% |
0.1% |
0.1% |
0.0% |
Telenor |
2.2% |
2.3% |
2.3% |
2.3% |
2.3% |
2.2% |
1.9% |
2.0% |
2.1% |
Videocon |
0.2% |
0.1% |
0.1% |
0.2% |
0.2% |
0.0% |
0.0% |
0.0% |
0.0% |
 |
100.0% |
100.0% |
100.0% |
100.0% |
100.0% |
100.0% |
100.0% |
100.0% |
100.0% |
*We have adjusted one-time spectrum trading revenue for Aircel (AP) in Q3FY17 and assumed sequential decline similar to incumbent operators for above calculations
Â
Adjusted gross revenue (Rs mn)Â Â Â
Operator  |
Q4Y15 |
Q1Y16 |
Q2Y16 |
Q3Y16 |
Q4Y16 |
Q1Y17 |
Q2Y17 |
Q3Y17 |
Q4Y17 |
%QoQ |
%YoY |
Bharti Airtel |
1,04,391 |
1,15,294 |
1,13,867 |
1,16,846 |
1,20,325 |
1,28,583 |
1,24,932 |
1,14,957 |
1,03,619 |
-9.9% |
-13.9% |
Vodafone |
78,283 |
84,511 |
81,852 |
82,391 |
86,163 |
90,045 |
87,548 |
83,045 |
72,581 |
-12.6% |
-15.8% |
Idea Cellular |
63,963 |
70,021 |
68,578 |
71,724 |
76,631 |
77,989 |
73,178 |
69,580 |
64,011 |
-8.0% |
-16.5% |
RCom |
18,309 |
18,639 |
16,332 |
15,539 |
13,610 |
13,610 |
11,106 |
9,677 |
7,330 |
-24.3% |
-46.1% |
Tata Tele |
24,446 |
25,884 |
25,333 |
25,207 |
25,959 |
26,205 |
25,313 |
22,094 |
18,773 |
-15.0% |
-27.7% |
BSNL |
18,599 |
19,324 |
21,957 |
22,054 |
21,914 |
18,741 |
19,982 |
20,930 |
19,673 |
-6.0% |
-10.2% |
Aircel |
19,718 |
20,067 |
19,741 |
19,619 |
20,028 |
19,858 |
19,352 |
17,639 |
13,607 |
-22.9% |
-32.1% |
MTNL |
1,804 |
1,610 |
1,617 |
1,561 |
1,889 |
1,353 |
1,459 |
1,690 |
1,265 |
-25.1% |
-33.0% |
Sistema |
2,908 |
3,162 |
3,318 |
3,071 |
3,140 |
3,027 |
2,743 |
1,997 |
1,575 |
-21.1% |
-49.8% |
HFCL Infotel Ltd. |
61 |
126 |
0 |
427 |
32 |
509 |
237 |
335 |
42 |
-87.5% |
30.5% |
Telenor |
7,639 |
8,318 |
8,313 |
8,325 |
8,567 |
8,601 |
7,169 |
7,038 |
6,508 |
-7.5% |
-24.0% |
Videocon |
562 |
517 |
447 |
632 |
590 |
0 |
0 |
0 |
0 |
 |
 |
Total |
3,40,682 |
3,67,473 |
3,61,355 |
3,67,395 |
3,78,847 |
3,88,520 |
3,73,019 |
3,48,979 |
3,08,984 |
-11.5% |
-18.4% |
Â
Â
Adjusted gross revenue
 Operator (Rs mn) |
FY11 |
FY12 |
FY13 |
FY14 |
FY15 |
FY16 |
FY17 |
%YoY |
Bharti Airtel |
281,046 |
304,226 |
313,404 |
356,551 |
406,772 |
466,332 |
472,090 |
1.2% |
Vodafone |
181,539 |
212,462 |
231,564 |
265,631 |
301,679 |
334,917 |
333,219 |
-0.5% |
Idea Cellular |
116,399 |
142,554 |
157,910 |
193,194 |
236,070 |
286,955 |
284,757 |
-0.8% |
RCom |
80,472 |
79,124 |
77,168 |
83,883 |
76,811 |
64,119 |
41,723 |
-34.9% |
Tata Tele |
77,950 |
90,057 |
86,217 |
85,735 |
96,426 |
102,382 |
92,385 |
-9.8% |
BSNL |
71,698 |
71,097 |
72,411 |
76,722 |
71,484 |
85,250 |
79,325 |
-7.0% |
Aircel |
43,188 |
47,284 |
51,526 |
63,848 |
74,953 |
79,454 |
70,456 |
-11.3% |
MTNL |
4,510 |
4,952 |
4,059 |
7,100 |
7,191 |
6,676 |
5,767 |
-13.6% |
Loop Mobile |
5,509 |
5,866 |
5,062 |
2,996 |
1,358 |
0 |
0 |
 |
Sistema |
4,463 |
10,336 |
12,091 |
8,336 |
10,960 |
12,692 |
9,342 |
-26.4% |
HFCL Infotel Ltd. |
1,415 |
1,147 |
1,112 |
1,233 |
929 |
584 |
1,123 |
92.1% |
Telenor |
5,531 |
17,893 |
20,948 |
20,972 |
28,204 |
33,524 |
29,316 |
-12.6% |
Videocon |
160 |
1,343 |
0 |
1,110 |
1,599 |
2,185 |
0 |
-100.0% |
Total |
874455 |
989253 |
1033472 |
1167310 |
1314438 |
1475069 |
1419503 |
-3.8% |
Â
 Operator |
FY11 |
FY12 |
FY13 |
FY14 |
FY15 |
FY16 |
FY17 |
Bharti Airtel |
32.1% |
30.8% |
30.3% |
30.5% |
30.9% |
31.6% |
33.3% |
Vodafone |
20.8% |
21.5% |
22.4% |
22.8% |
23.0% |
22.7% |
23.5% |
Idea Cellular |
13.3% |
14.4% |
15.3% |
16.6% |
18.0% |
19.5% |
20.1% |
RCom |
9.2% |
8.0% |
7.5% |
7.2% |
5.8% |
4.3% |
2.9% |
Tata Tele Services |
8.9% |
9.1% |
8.3% |
7.3% |
7.3% |
6.9% |
6.5% |
BSNL |
8.2% |
7.2% |
7.0% |
6.6% |
5.4% |
5.8% |
5.6% |
Aircel |
4.9% |
4.8% |
5.0% |
5.5% |
5.7% |
5.4% |
5.0% |
MTNL |
0.5% |
0.5% |
0.4% |
0.6% |
0.5% |
0.5% |
0.4% |
Loop Mobile |
0.6% |
0.6% |
0.5% |
0.3% |
0.1% |
0.0% |
0.0% |
Sistema |
0.5% |
1.0% |
1.2% |
0.7% |
0.8% |
0.9% |
0.7% |
HFCL Infotel Ltd. |
0.2% |
0.1% |
0.1% |
0.1% |
0.1% |
0.0% |
0.1% |
Telenor |
0.6% |
1.8% |
2.0% |
1.8% |
2.1% |
2.3% |
2.1% |
Videocon |
0.0% |
0.1% |
0.0% |
0.1% |
0.1% |
0.1% |
0.0% |
 |
100.0% |
100.0% |
100.0% |
100.0% |
100.0% |
100.0% |
100.0% |
Â
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==============================================================================================================================================================================================
Management interview: Federal bank, Bajaj Electricals
Ø Federal Bank : See FY18 loan growth at 18-20%; NIMs steady at 3.25%
Ø Bajaj Electricals : Our products will be IoT and Artificial Intelligence driven
Â
Federal Bank : See FY18 loan growth at 18-20%; NIMs steady at 3.25%
Mr. Shyam Srinivasan - MD & CEO
Â
Mr. Shyam Srinivasan, MD & CEO, spoke about the outlook for the business going forward and the monetary policy. He is hopeful of seeing FY18 loan growth in the vicinity of 18-20 percent and expect net interest margins to be steady at 3.25 percent.
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The bank will maintain equal share of book across its three segments that is corporate, retail and small & medium enterprises (SMEs), he said.He said the bank would also look at raising capital to fund growth and that they have an enabling resolution to do so but would need to take shareholders’ approval. The timing and instrument to raise capital will be decided later. When asked if they were looking at inorganic growth, he said there was nothing on the horizon as of now but if something interesting came along they would look at it.
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Federal Bank has been a wealth creator and in the in the year 2017, has seen 70 percent rise till date.Talking about monetary policy, he said there is likelihood of a repo rate cut going ahead.
Â
Â
Bajaj Electricals : Our products will be IoT and Artificial Intelligence driven
Mr. Anant Bajaj, Joint MD
 |
Anant Bajaj, Joint Managing Director of Bajaj Electricals believes his organization has always been light years ahead of the competition. Way back in 2003, the company created the CIDCO Kharagar electric circle when the concept of smart lighting was but a whisper. The FMEG company, as Bajaj likes to call it has been lighting up iconic city buildings and landmarks like the CST station, Worli sea face, Rajabai clock tower and Wankhede cricket stadium. Bajaj Electricals was also the lighting partners of the Indian leg of Justin Bieber’s Purpose World Tour.
Â
Six years into his role as the Joint Managing Director of BEL, Anant Bajaj is all set to drive the company into the next orbit of growth. In an interview with ETCIO, Anant Bajaj talks about the digital transformation of the company, the recently launched digital center and the technology led product innovations at Bajaj Electricals.
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