Bharti Airtel Limited , usually referred to simply as " airtel ", is a Indian telecommunications company that operates in 19 countries across South Asia , Africa and the Channel Islands .
Airtel is the fifth largest telecom operator in the world with over 207.8 million subscribers across 19 countries at the end of 2010.
It is the largest cellular service provider in India , with over 152.5 million subscribers at the end of 2010.
Airtel brand and is headed by Sunil Bharti Mittal . Bharti Airtel is the first Indian telecom service provider to achieve this Cisco Gold Certification. To earn Gold Certification, Bharti Airtel had to meet rigorous standards for networking competency, service, support and customer satisfaction set forth by Cisco .
P & L CONSOLIDATED - BHARTI AIRTEL LTD AS ON 05/02/2011
STATEMENT CONTAINING DEGREE OF OPERATING LEVERAGE
The formula used to solve are as follows:-
DOL (Degree of Operating Leverage] = Contribution/EBIT.
Variable Cost = Power & Fuel Cost + Miscellaneous Expenses + Raw Materials.
Fixed Cost= Employee Cost + Other Manufacturing Expenses + Selling and Administration Expenses.
There is no operating leverage if DOL=1.
Degree of leverage depends on the fixed operating costs of the company, larger the fixed operating costs, the higher is the firm’s operating leverage and its operating risk.
When firm has increased fixed operating costs, an increase in sales volume results in a more than proportionate increase in EBIT.
In 2006 DOL is high(2.6251) for the company and it is decreased for the other years rapidly.
The company has efficiently utilized its fixed operating costs to keeps the sales volume high and increases its profit.