Bharti Infratel Ltd (NSE:BHIN) Q1 2020 Earnings Conference Call Transcript

Jul 25, 2019 • 06:00 am ET

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Bharti Infratel Ltd (NSE:BHIN) Q1 2020 Earnings Conference Call Transcript

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Presentation
Executive
Akhil Gupta

an exponential growth in both subscribers as well as the wire data consumption -- wireless data consumption for use of month, is also reflected in our operational trend this quarter we have after reporting the net co-location decline for the last consecutive six quarters.

Yeah. For the first time I've seen an increase in net co-locations on a quarter-to-quarter basis. We often believe that this trend will continue as the feel that the need of the hour for the industry is to improve coverage and capacity across the nation.

Coming to some high-level financial and operational highlights for the quarter. As on June 30, 2019, the consolidated tower base is stood at 92,632. The consolidated co-locations at 173,247 with a co-location factor of 1.87 at closing. Just to remind the consolidated earnings, including 42% of invest. The co-locations that stated earlier or lower by 13.7% on year-on-year basis, mainly on account of exits my Vodafone Idea.

The consolidated revenues for the quarter and INR3,712 crores with 1% on reported basis, excluding the impact of Ind AS 116. The revenues for the quarter would have been INR3,630 crores declining by early by 1% year-on-year. The EBITDA at INR1,953 crores with 28% year-on-year on the reported basis, representing an operating margin of 52.6%. However, excluding the impact of IND AS 116, EBITDA for the quarter would have been INR1,557 crores, up 2% year-on-year with an operating margin of 42.9%, up 150 basis points year-on-year. Internationally, the consolidated PBT at INBR1,106 crore grew 3% year-on-year, excluding the impact of new standard. The PBT would have been INR1,038 crores, down 3% year-on-year. The PAT at INR887 crores, grew 39% Y-o-Y, however, without the impact of the new standard, it would have been INR843 crore, up 32% year-on-year.

Operating free cash flow at INR1,207 crores, grew 22% and without the impact 15% year-on-year. The ROC Pre tax and ROCE post tax was 26% and 27% respectively after moving to Ind AS 116. As you would note from the above, while the co-location decline is almost 14% on a year-on-year basis, as I mentioned primarily due to consolidation of Voda and Idea.

However, we have very quickly recovered in terms of financial performance, which has shown marginal improvement vis-a-vis last year, on a like-to-like basis. This along with the fact that we are now seeing revival of demand, of this welfare [Phonetic] industry and for our company, this is also reflective of the Inherent soundless and maturity of our business model, which has been followed by all tower companies in India, including our company.

I would like to mention that in all likelihood, this would be the last investor call for Bharti Infratel in its current form, where it has its own operations and own 22% in the Indus Towers. This is, as I mentioned earlier on the account of in pending merger with Indus, it should [Indecipherable] to complete it by end of August. That is within this current quarter.

The merged entity will be