FINANCIAL

MANAGEMENT

REVIEW – 2
SLOT : C1+TC1

Submitting to :- Mousumi Singha Mahapatra

(Assistant Professor)

GROUP MEMBERS :-
❖ V. Naveen Kumar (18BBA0123)
❖ M. Gokul Kumar (18BBA0125)
❖ S. Sharmila (18BBA0121)
❖ S. Logeshwaran (18BBA0115)
Airtel’s Recent Financial Status :-
➢ Bharti Airtel on Thursday reported a quarterly loss before interest and taxes for its
India operations, but a marginal expansion in its local mobile services revenue, the
first in several quarters, suggested signs of recovery at the nation’s second largest
telecom operator.
➢ The New Delhi-based company posted a loss of Rs 89.8 crore before interest and
taxes in its India services for the January-March quarter, compared with an operating
profit of Rs 101 crore a year earlier.
➢ Total India revenue and that from services, including mobile, both rose by nearly 3
per cent to Rs 15,240 crore and Rs 10,632 crore, respectively.
➢ The company attributed the rise in mobile revenue to its ‘Airtel Thanks’ programme
that it recently launched. Data traffic in the quarter surged by nearly two-and-a-half
times and voice services by 23.4 per cent from a year earlier. Operating loss at
services, however, nearly tripled to Rs 1,377 crore.

MARKET SHARE :-
AIRTEL DATA :-

 Data volume grew for Airtel during the quarter, along with the increase in
connections. Airtel users consumed 2,660.3 billion MBs of data during the quarter, up
23.7% quarter on quarter from 2,150.65 billion MBs last quarter. That’s a growth of
509.6 billion MBs.

Airtel’s Future Plans :-

➢ Rajiv Sharma, co-head of research at SBICap Securities, estimates Bharti Airtel will need
to invest “an incremental $5 billion (Rs 35,000 crore) over the first three years even for a
selective 5G rollout, and an additional $3 billion (Rs 21,000 crore) for 4G expansion, for
which mobile pricing will need to be revised upwards, primarily to support upcoming
investments in 5G spectrum and networks.”
 INCOME STATEMENT FOR THE LAST
5 YRS (AIRTEL) :-
BHARTI AIRTEL BALANCE SHEET
(2015-2019) :-
Reliance JIO’s Recent Financial Status :-
 Reliance jio reported a standalone profit of Rs 840 crore for the quarter ended March
31, 2019. As per the Reliance jio earnings released on Thursday, the telecom arm of
Reliance Industries saw its net profit jump 64.7 per cent as compared to Rs 510 crore
reported for the corresponding period in the previous fiscal. On a quarterly basis,
Reliance Jio posted an increase of 1.1 per cent as opposed to Rs 831 crore seen at the
end of December quarter this fiscal.
 The net profit for the financial year 2018-19 was Rs 2,964 crore, Reliance Jio said in
regulatory filing on Thursday. The company had posted a net profit of Rs 723 crore
during 2017-18, amounting to an increase of 310 per cent.
 The standalone revenue from operations of Reliance Jio for the March quarter of FY
2018-19 was Rs 11,109 crore, in comparison to Rs 10,383 crore in the December
quarter of the same fiscal. This translates into a 7 per cent quarter-on-quarter increase.

Reliance Jio has shaken up India’s telecom

industry …
➢ Within two years, India’s richest person turned the local mobile-phone market into the
world’s biggest consumer of wireless data. But along the way, billionaire Mukesh
Ambani laid waste to profits in the overcrowded industry by driving down prices to as
low as zero.
➢ Ambani leads Reliance Jio Infocomm Ltd., which has gone from zero to more than
200 million subscribers, all of them on a nationwide 4G network, since 2016. While
the user growth has come at the expense of smaller rivals who’ve merged or quit the
market, the thrust into the country’s No. 3 spot for wireless carriers has also ravaged
profit at Bharti Airtel Ltd., and Idea Cellular Ltd. The latter has merged with
Vodafone Group Plc’s India unit to overtake Bharti as the market’s biggest operator.
➢ Since Jio stormed in with introductory free data and voice services, the market has
consolidated into three big providers, including Vodafone Idea Ltd., which completed its
merger at the end of August.

Meanwhile, Reliance Jio, a unit of Ambani’s energy-to-retail conglomerate Reliance

Industries Ltd., has reported two-quarters of profit, driven by subscription growth that has
continued even after the company began charging for data services.

Consumers have been the clear winners, as the cost of sending and receiving data
wirelessly has plummeted. The plunge in prices has led to surge in data traffic to 1.5
billion gigabytes a month last year .
➢ While the user growth has come at the expense of smaller rivals who’ve merged or quit
the market, the thrust into the country’s No. 3 spot for wireless carriers has also ravaged
profit at Bharti Airtel Ltd., and Idea Cellular Ltd.

➢ Prior to Jio’s entry into the market, India had more than 10 wireless providers, with the
smallest five accounting for about 21 per cent and Bharti, the largest, taking up 25 per
cent.
Reliance Jio Balance sheet
(2017 & 2018) :-
INCOME STATEMENTS OF RELIANCE
JIO FOR THE PAST 3 YRS :-

Future Plans (Reliance Jio) :-

 "After successful execution of mobility business, Jio is now focused on catapulting
India's underserved home and enterprise connectivity market to global standards with
its next generation FTTX services. Jio mobility services along with GigaFiber fixed-
broadband services and associated technology platforms have been designed to
transform India with the power of Digital Revolution and reinvent Reliance as a
Technology Platform Company," Reliance Industries Chairman Mukesh Ambani said.
 Reliance Jio reported steady growth in subscribers with net addition of 26.6 million
during the March quarter. The total subscriber base, as on March 31, 2019, was at
306.7 million, the telecom company said in its statement.
THANKING YOU …