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

Jul 25, 2019 • 06:00 am ET

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

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Executive
Akhil Gupta

one of the largest in-country towerco globally. Of course, China Tower being separately or together. We would have possibly second, only to China Towers in terms of the 307,000 on co-locations, that we would add as on June 30, 2019 on a total basis. For your clarity, at this premium merged entity as on the 1st April itself, for this full quarter, its revenues would have been for the business we should be taken for its 30th June quarter. The revenue would have been INR6,400 crores, EBITDA of over INR3,200 crores, PAT of INR1,000 crores, [Indecipherable] INR1,800 crores.

The net debt for the merged entity including these liabilities would have been about INR14,000 crores.

I would like to take this opportunity to thank our MD and CEO, D.S. Rawat for steering this company very extremely [Phonetic] for the last several years, but it to emerge as not only financially a very strong and stable company, particularly in these times than in most of the companies are going through massive stress. But more important and as a shining example of height levels of corporate governance, but it's quarterly full audits an unparalleled transparency with this financial and operational disclosures in the quarterly reports. As you were made aware last quarter, DS sir [Phonetic] requested, not to be considered as the CEO role in the merged entity.

To conclude, we remain confident of the long-term potential of the Indian telecom industry. The ongoing digital revolution and the next generation technologies will open up new avenues for infrastructure demand it's ticked up, the imminent merger of Infratel and Indus [Indecipherable] the combined entity will have a unified nationwide presence along with very strong financial muscle [Indecipherable] requisite telecom pattern infrastructure in the country.

Thank you all. I will now request Bala to bring on their own big changes from this quarter, before we would open the floor to questions-and-answers.

Executive
S Balasubramanian

Thanks, Akil. Good evening, everybody. Effective April 1, 2019, the company has adopt a new accounting standard IND AS 116, which deals with leases have notified by the government. And the earliest under IND AS 17, operating leases were treated as revenue expenses, whereas under IND AS 116 all long-term leases whether operating or finance leases are recorded in the balance sheet.

The new standard impacts our performance as Lessor and Lessee. As Lessor, all our contracts with customers having escalation clause over the lease term. Going forward, rental escalation over the remaining period of the lease term are straight-lined in the form of Revenue Equalisation Reserve and recognized under rental revenue. In the initial years of customer leases, the revenue from -- Revenue Equalisation Reserve will be higher and will be lower as it approaches the expiry term.

As Lessee, all our lease agreement with the landlords for sites etc are long-term in nature. The company has adopted modified retrospective approach as allowed by this standard. Accordingly, the company has recognized Right of Use Asset as on April 1, 2019. The Right of