CRISIL Ratings on Tuesday has upgraded its long term ratings on the bank facilities and debt programme of Bharti Airtel Ltd (Bharti Airtel ) to ‘CRISIL AA+/Stable' from 'CRISIL AA/Stable.'
The rating agency has withdrawn its rating on Rs 1,500 crore non-convertible debentures (NCDs) of Bharti Airtel as they have been fully repaid. CRISIL Ratings has received confirmation of no dues against these NCDs from the debenture trustee.
The rating action reflects continued improvement in Bharti Airtel's operating metrics resulting in a healthy financial risk profile. CRISIL expects further improvement in the overall credit risk profile of the company over the near to medium term on the back of improving cash accruals, deleveraging plans including a rights issue, notwithstanding adjusted gross revenue (AGR) dues and additional expenditure done for acquiring spectrum at the auction held in March 2021.
Also Read:
Consolidated earnings before interest, tax, depreciation and amortization (EBITDA; including the impact of Ind-AS 116 and excluding other income) grew by 22 percent on-year to Rs 12,980 crore in the first quarter of fiscal 2022, aided by healthy subscriber addition of mobility business over the past few quarters and improving average revenue per user (ARPU). Over the last four quarters ended June 2021, BAL has added around 4.6 crore 4G customers.
The company has the highest ARPU for India mobile services in the industry, at Rs 146 during the quarter through June 2021. Moreover, the EBITDA margins of the India and Africa mobile service businesses improved by over 850 basis points (bps) on-year to 49 percent and 400 bps on-year to 48 percent respectively during the quarter.
CRISIL Ratings expects the ARPUs to improve, aided by recent revisions in some plans and up-trading by subscribers, resulting in further improvement in operating revenue and profit. It also believes that a broad-based tariff hike as was last seen in December 2019, is likely within the next 6-9 months.
"BAL has been able to maintain its leverage (net Debt to EBITDA) at around 3 times as of June 30, 2021, despite AGR dues and additional spectrum liabilities, on account of rapidly improving business performance and deleveraging measures are undertaken," the rating agency said.
(Edited by : Jomy Jos Pullokaran)
First Published: Sept 28, 2021 4:44 PM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
2024 Lok Sabha Elections | Will Amethi and Rae Bareli see the rise of Priyanka Gandhi as a dominant political figure
May 18, 2024 8:59 AM
Lok Sabha Election 2024: I.N.D.I.A. bloc to hold rally at Mumbai's BKC today
May 17, 2024 5:18 PM
In Ayodhya, voters talk of a promise fulfilled and yearning for development
May 17, 2024 2:10 PM
Fight of heavyweights in Sambalpur where farmers, weavers hold the key
May 17, 2024 12:25 PM