We maintain ?buy? on Bharti Airtel and revise our target price to Rs 410 from Rs 400, which incorporates higher value for the Infratel stake after our recent upgrade. Our Ebitda and PAT estimates are largely unchanged. We expect a 13% consolidated Ebitda CAGR over FY14-16e. The stock trades at proportionate EV/Ebitda of 6.4x FY15e and 5.8x FY16e.
Bharti?s Q4FY14 Ebitda grew 3% q-o-q and 20.6% y-o-y to R7,310 crore (estimated R7,210 crore), driven by strong performance in India business. Consolidated revenue grew 13.5% y-o-y and 1.3% q-o-q to R22,220 crore (versus estimated R22,250 crore), driven by q-o-q growth across all segments except the Africa business, which was impacted by seasonal weakness.
Proforma PAT increased 135% y-o-y and 44% q-o-q to R1,195 crore. Reported PAT of R960 crore included R230-crore exceptional loss on account of integration costs. India mobile revenue grew 9.3% y-o-y and 3.4% q-o-q to R12,040 crore. Ebitda grew 25.1% y-o-y and 6% q-o-q to R4,210 crore (vs estimates of R4,170 crore). Mobile traffic grew 3.8% q-o-q (vs estimates of 3.5%); mobile RPM remained flat sequentially at 44.9 paise (vs estimated 45.1 paise). Data revenue contribution rose to 11.1% in Q4FY14.
