This document summarizes key financial metrics and ratios for three major Indian telecommunication companies - Bharti Airtel, Reliance Communication, and Idea Cellular. It provides details on capital structure, debt to equity ratios, earnings per share, return on capital employed, price to earnings ratios, dividend yield and earnings yield for the years 2013, 2012 and 2011. Bharti Airtel maintained a consistent capital structure over the years while Reliance saw an increase in authorized capital in 2013. Debt to equity ratios showed all companies had sound financial positions with ratios generally below 1. Airtel had the highest EPS and ROCE among the companies.

1. TELECOMMUNICATION
INDUSTRY
BY:
SHUBHAM RUSIA

2. IDEA CELLULAR
RELIANCE
COMMUNICATION
BHARTI
AIRTEL

3. BHARTI AIRTEL
 Bharti Airtel Limited, commonly known as Airtel, is an Indian multinational telecommunications
Service Company.
 It operates in 20 countries across South Asia, Africa, and the Channel Islands.
 Headquarters: New Delhi, India
 Founded: July 7, 1995
 Founder: Sunil Bharti Mittal
 CEO: Gopal Vittal, Christian de Faria, Manoj Kumar Kohl
 Employees: 21,299
 subsidiary companies: 119
 It is the largest cellular service provider in India, with 192.22 million subscribers as of August 2013.
 Airtel is the world's third largest mobile telecommunications company by subscribers.
 Bharti Airtel is the first Indian telecom service provider to achieve Cisco Gold Certification.

4. RELIANCE COMMUNICATION
 RCOM is India's second largest telecom operator, only after Bharti Airtel.
 It is the 15th largest mobile phone operator with over 150 million subscribers. Established in
2004, it is a subsidiary of the Reliance Group.
 Headquarters: Mumbai, India
 Founded: 2004
 Founder: Anil Ambani
 Employees: +30000
 RCOM is India's integrated and fully converged communication service provider in the
private sector and has been rated among “Asia’s top 5 most valuable telecom
company.

5. Idea Cellular
 The company was incorporated as Birla Communications Limited on March 14, 1995
and commenced business on August 11, 1995.
 Changed name to Idea Cellular Limited and launched "Idea" brand name in 2002.
 Headquarters: Mumbai, India
 Founded: 1995
 Chairman Kumar Mangalam Birla
 Employees: + 7000
 IDEA Cellular has been recognized as the 'Most Customer Responsive Company' in the Telecom
sector

6. BHARTI AIRTEL
 It’s judges the long term financial policy of the business.
 Establishes relationship between term loans and owners’
funds.
 Debt/equity ratio- (Total debt) / (shareholders’ funds)
 Ideal debt equity ratio: 2:1
DEBT EQUITY RATIO
Mar '13 Mar '12 Mar '11
Shareholders' Funds
Share capital 18,988 18,988 18,988
Reserves & surplus 522,474 475,308 422,128
541,462 494,296 441,116
Long term borrowings 98,408 82,338 74,687
Short term borrowings 31,390 58,956 27,644
Total Debt 129,798 141,294 102,331
 Long term loans or debt= debenture + public deposits +
mortgage + term loans + secured loans.
 Shareholders’ funds= equity/preference share capital +
reserve & surplus + capital reserve.
i. For march 2012-2013: (129798 / 541462) = 0.18
ii. For march 2011-2012: (141294 / 494296) = 0.17
iii. For march 2010-2011: (102331 / 441116) = 0.17
 CONCLUSIONCONCLUSION:: Long term financial position of the
company is sound, because total shareholders’ funds
are more than 4 times of long term loans.
 Every year company’s reserves & surplus is increasing.
In millions

7.  For march 2012-2013: (30327 / 33142)= 0.69
 For march 2011-2012: (27871 / 45197)= 0.51
 For march 2010-2011: (31452 / 48144)= 0.28
RELIANCE COMMUNICATION DEBT EQUITY RATIO
Mar '13 Mar '12 Mar '11
Shareholders'
Funds
Share capital 1,032 1,032 1,032
Reserves & surplus 32,110 44165 47,112
33142 45197 48144
Long term loans 22,891 23,365 13,606
Short term loans 7,436 4,506 9,530
Total Debt 30327 27871 31452
In crs.
CONCLUSION: Total debt of the company is less than the
shareholders’ funds and all 3 years ratio is less than 1 so it
represents that company’s financial position is good but
every year company’s reserve and surplus is decreasing.

8.  For march 2012-2013: (112794.3/140199.01)= .75
 For march 2011-2012: (101381.7/129345.38)= .66
 For march 2010-2011: (105574.6/123307.02)= .61
IDEA CELLULAR LIMITED DEBT EQUITY RATIO
Mar '13 Mar '12 Mar '11
Shareholders'
Funds
Share capital 33,143.22 33,088.45 33,032.72
Reserves & surplus 107,055.79 96,256.93 90,274.30
140,199.01 129,345.38 123,307.02
Long term loans 105,743.9 86,121.56 75,787.60
Short term loans 7,050.4 15,260.14 16,933.76
Total Debt 112794.3 101381.70 92,721.36
In crs.
CONCLUSIONCONCLUSION:
•All 3 years ratio is less than 1 so it represents that
company’s financial position is sound.
•every year company’s reserve and surplus is increasing.

9. DEBT TO EQUITY RATIO
Company 2013 2012 2011
Airtel 0.24 0.29 0.23
Idea 0.80 0.78 0.86
Reliance 0.91 0.62 0.65

10. CAPITAL STRUCTURE
From Instrument Authorized
Capital (Rs. Cr)
Issued Capital
(Rs. Cr)
Shares (nos) Face Value Capital
2012-2013
Equity Share 2500 1898 3797530096 5 1898
2011-2012
Equity Share 2500 1898 3797530096 5 1898
2010-2011
Equity Share 2500 1898 3797530096 5 1898
BHARTI AIRTEL

11. FROM INSTRUMENT AUTHORIZED
CAPITAL (RS. CR)
ISSUED CAPITAL
(Rs. Cr)
SHARES (NOS) FACE
VALUE
CAPITAL
2012-2013
Equity Share
2500 1,032.01 2,064,026,881 5 1,032.01
2011-2012
Equity Share
1500 1,032.01 2,064,026,881 5 1,032.01
2010-2011
Equity Share
1500 1,032.01 2,064,026,881 5 1,032.01
RELIANCE COMMUNICATION
CAPITAL STRUCTURE

12. IDEA CELLULAR LIMITED
CAPITAL STRUCTURE
FROM INSTRUMENT AUTHORIZED
CAPITAL (RS. CR)
ISSUED CAPITAL
(Rs. Cr)
SHARES (NOS) FACE
VALUE
CAPITAL
2012-2013
Equity Share
6775 3314.32 3314321766 10 3314.32
2011-2012
Equity Share
6775 3308.85 3308845110 10 3308.85
2010-2011
Equity Share
6775 3303.27 3303271505 10 3303.27

13. CAPITAL STRUCTURE COMPARISON
 Capital structure of BHARTI AIRTEL was same for the 3 consecutive years
 Capital structure of RELIANCE COMMUNICATION has change in the year, due to change
in Equity Share, the Equity Share of the year 2010-2011 and 2011-2012 was Rs.1500 crs
where as it increase to Rs.2500 crs in the year 2012-2013
 Capital Structure of IDEA CELLUAR was different in different years due to difference in
issue price of Equity Share in all the 3 years and the number of Equity Share varied
accordingly, i.e:
Year ISSUED CAPITAL
(Rs. Cr)
NO.OF SHARES
2012-2013 3314.32 3314321766
2011-2012 3308.85 3308845110
2010-2011 3303.27 3303271505

14. Equity earnings(AIRTEL)
March 2013 March 2012 March 2011
PBDIT 14,933.80 14,268.40 13,661.50
Interest (1,652.30) (1,396.20) (324.10)
PBDT 13,281.50 12,872.20 13,337.40
Depreciation (6,826.70) (5,916.00) (4,611.60)
Profit Before Tax 6,454.80 6,956.20 8,725.80
Tax (1,358.50) (1,226.20) (1,008.90)
Earning available for equity
shareholders
5,096.30 5,730.00 7,716.90
Number of equity shares 3797530096 3797530096 3797530096
 EPS: (Earning available for equity shareholders / number of equity shares)
2013 2012 2011
13.42 15.09 20.32
In Crs.

15. EPS:
Equity earnings(RELIANCE)
2013 2012 2011
3.02 0.76 (3.67)
March 2013 March 2012 March 2011
EBITDA 4281.00 4187.00 2417.65
Depreciation 1681.00 1741.00 1594.27
EBIT 2600.00 2446.00 823.38
Interest 1976.00 1265.00 853.69
EBT 624.00 1181.00 -30.31
Taxes .00 1025.00 1179.00
Profit and Loss for the Year 624.00 156.00 -1209.31
Non Recurring Items .00 .00 349.80
Other Non Cash Adjustments .00 .00 101.52
Earning available for equity shareholders 624.00 156.00 -757.99
Number of equity shares 2,064,026,881 2,064,026,881 2,064,026,881
In Crs.

16. March 2013 March 2012 March 2011
EBITDA 5156.45 4875.14 3691.47
Depreciation 3054.36 2019.46 1723.00
Other Write-offs .00 543.32 250.02
EBIT 2102.09 2312.36 1718.46
Interest 813.46 1488.39 894.82
EBT 1288.64 823.97 823.64
Taxes 470.38 265.72 61.72
Profit and Loss for the Year 818.26 558.25 761.92
Non Recurring Items .00 -21.60 35.22
Other Non Cash Adjustments .00 39.88 47.46
Earning available for equity shareholders 818.26 576.54 844.60
Number of equity shares 3314321766 3314321766 3314321766
Equity earnings(IDEA)
EPS: 2013 2012 2011
2.47 1.74 2.56
In Crs.

17. E P S
Company 2013 2012 2011
Airtel 13.42 15.09 20.32
Reliance 3.02 0.76 (3.67)
Idea 2.47 1.74 2.56
Company 2013 2012 2011
Airtel 5,096.30 5,730.00 7,716.90
Reliance 624.00 156.00 -757.99
Idea 818.26 576.54 844.60
Equity earning
In Crs.

18. RETURN ON CAPITAL EMPLOYED
Company 2013 2012 2011
Airtel 12.41 13.97 18.51
Reliance 3.71 1.84 -0.02
Idea 9.02 7.80 6.23
 A financial ratio that measures a company's profitability and the efficiency
with which its capital is employed.
 ROCE = (Earnings Before Interest and Tax (EBIT) / Capital Employed)

19. PRICE EARNING RATIOS
 A valuation ratio of a company's current share price compared to its per-share
earnings.
 Price earning ratio: (Market price per share / Earning per share)
Company 2013(current)
Airtel 30.54
Reliance 47.74
Idea 56.27

20. Dividend yield
 A financial ratio that shows how much a company pays out in dividends each year
relative to its share price.
Dividend Yield = (Dividend per Share / Market value per share)
Company 2013(current)
Airtel 0.29
Reliance 0.17
Idea 0.16

21. Earnings Yield
 The earnings yield is used by many investment managers to determine optimal
asset allocations.
 Earning yield: (Earnings Per Share / Market Value per share)
Airtel Reliance Idea
.03 0.02 0.02

22. Airtel Reliance Idea
1.00 0.25 0.3
DPS:
Airtel Reliance Idea
11.47 3.14 3.11
EPS

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